|
Bad credit can definitely be an issue when trying to secure rental accommodations.
Many landlords use credit checks to determine if potential renters are suitable candidates. They’ll review your credit history to assess how much of a financial risk you might be. If your credit history is bad, you might have a tough time qualifying for that rental you hope to secure.
Here are some ways you can overcome your bad credit and still get that rental you’re looking for:
1. Look for Rentals That Don't Check Credit
The best way to get an apartment when you have bad credit is to look for landlords that don’t do credit checks. Most often, apartment complexes are owned by large property management companies that require a credit check on all applications. These types of apartments usually have very strict policies and are not flexible. You are more likely to be turned down if you have bad credit. Try looking for properties owned by individual landlords who often don't check credit or who may be more willing to take a risk on a tenant who doesn't have the best credit history but has good rental history and solid income.
If you do decide to apply to a large property management, call the office and ask what information is considered when approving tenants. Make sure you have all the information they need when it comes time to complete the application.
2. Find a Guarantor or Co-Signer
Ask a friend or relative with good credit to co-sign the rental application with you. You’ll be the only one actually living in the apartment but your co-signer agrees to cover the payments in the event that you don’t pay your rent. This can help a landlord feel safer renting to someone with less than great credit.
Remember though - you don’t actually want your co-signer to be forced to take over payments for you, so make sure the monthly rent is an amount you can comfortably afford.
3. Get Recommended
Use a past landlord or a good friend who can vouch for you that you are a great tenant. A good recommendation may go a long way to help convince a landlord that despite your poor credit, you’re worth taking a chance on. When going to a showing, bring letters of reference from previous landlords even if they were only short term. Also, bring letters of reference from past roommates.
4. Try for a shorter lease
If your potential landlord is hesitant to rent to you because of your bad credit, try suggesting starting off with a shorter lease – sort of like a trial period. Ask your landlord if you can start off with a lease of just three or six months to prove you can pay on time and be a great tenant.
If you do so, hopefully they will renew the lease for longer when it ends. If you do end up making late payments or missing payments, you can move out after the short lease ends and they won’t have to worry about evicting you.
5. Pay in Advance or Increase Your Security Deposit
Bad credit makes landlords nervous because it tends to make them feel you may not pay your rent or will be late with it. By paying a month or more in advance or offering a two-month security deposit, it shows that you’re committed to the unit and making efforts to be a good tenant.
6. Compromise by Paying a Little More
Some landlords — especially if you’re renting from a property management company —charge additional “risk” fees if your credit score is poor. If you can afford it, you may want to consider accepting this option for a short term if you really love the apartment, or if you need to find a place to live quickly. Once you’ve established a good tenant history, you could potentially negotiate to get the fees removed.
If you’re dealing with an individual manager who is inclined to deny your application, you may be able to negotiate a slightly higher rent as a gesture of good faith. Again, this is only if you can afford it. Don’t offer to pay a higher amount of rent that puts such a strain against your budget that you can’t afford your other bills.
7. Show Solid Income and Offer to Pay via Direct Deposit
If your credit is not great, being able to show that you currently have regular, solid income can go a long way towards making a landlord feel better about you.
When applying for an apartment, have proof of income ready, such as recent pay stubs, tax returns and a letter from your employer verifying your employment status and income. Offering to have your rent automatically deducted from your bank account can also help or if you are on Social Assistance, offer to have the rent paid directly from your assistance.
8. Get a Roommate
Willing to share your living room and kitchen? Consider having a roommate. If the landlord will allow just one person to sign the lease, see if your roommate is willing to sign it solo. (Alternately, try to move-in with a roommate who’s mid-lease.) This way, the person on the lease is the one with more solid credit.
Roommates come with a second benefit: you’ll be able to share the bills. By reducing your financial burden, you can continue to pay down your debt and repair your bad credit faster — a true win-win!
9. You May Have Better Luck if You’re Willing to Live Outside of the Area
If you’ve really tried everything but are still struggling to secure a rental unit, you might need to expand your search criteria.
If you’re willing to move to an area outside of town, you may have better luck finding an apartment that accepts you regardless of your credit score, and one that doesn’t have three other people with good credit in competition with you.
Living outside of the area you want to be in may not be desirable, but you may need to do this for the short term until you can find something that is more suitable.
10. Be Honest and Show Progress
Bad credit doesn’t only happen because of bad money management. You may have lost your job, suffered from medical problems or experienced another financial setback that was out of your control. If this is the case, be upfront about it—before the landlord even runs your credit check. Your willingness to admit and own up to your bad credit is a point in your favour.
It also helps to be able to demonstrate the steps you’ve taken, and are currently taking, to fix the problem. This will show the landlord you’re responsible and committed, even if your credit isn’t perfect.
When It Comes Right Down to Convincing a Landlord to Rent to You (Even If You Have Bad Credit)
Being a good tenant isn’t just about having good credit and a good income. While those things are often important to a landlord, it’s also important that a landlord feels good about who you are. This can mean communicating clearly and confidently; give straight forward answers when asked. And above all, be honest, even if you have bad credit. Landing the place is just the start. When it comes time to renew your lease or to ask your landlord to be a reference for the next place, you don’t want them to feel like you were not someone you claimed to be when you moved in.
|
