Renters with Bad Credit Finding Ways to Woo Wary Landlords
In recent years, the number of people renting their living space has steadily risen in the U.S. Now, some renters who previously faced application rejection due to bad credit are finding ways to woo wary landlords.
The rental trend has been growing since 2004, but began its sharpest climb following the 2008 economic crisis. With waves of foreclosures sweeping through neighborhoods, homeowners turned to the rental market for their housing. In addition, high rates of unemployment and debt, falling home values, and the general financial uncertainty that hung over American families added to a hesitancy or inability to pursue homeownership.
The renter share of all US households rose from around 30 percent in the early 2000’s to upwards of 35 percent by early 2013. That amounts to around 43 million renters in all.
Renters with bad credit need not apply
Unfortunately, the same people who were unable to hang on to their homes, or have been struggling financially, were also the ones seeing their rental applications rejected due to bad credit. It’s a paradox of the real estate market—one that has evaded resolution for several years.
In some cases, landlords have cause to be wary of applicants with bad credit and uncertain income. Statistically, such tenants are more likely to come up short on rent payments, leaving landlords holding the bill.
Hope for renters with bad credit
But now, some renters with poor credit are finding new ways to get landlords to rent to them, and are seeing their options opening up.
Jordan Russell in Marietta, GA is one such tenant. He suffered a foreclosure in 2010 following a long, stressful and debt-inducing fight to hang onto his home. In the wake, his credit score plummeted and he was unable to find any rental property that would accept him.
“It was awful,” Russell said. “I was out of my house, and I couldn’t even find a crummy apartment to rent.”
He was forced to move back in with his parents, an arrangement that none of the parties were eager to prolong. “It was humiliating for me, and inconvenient for them,” said Russell. Finally, last month, he found a way to get himself into a rental agreement.
Breaking through the credit check challenge
There are several ways renters with blemished credit histories can break down the barriers and get into nice rental properties. First, individuals should review their own credit report, checking all three for any inaccuracies and filing a credit report dispute to have any errors removed.
Second, not every landlord or rental complex will require a credit check. Renters who anticipate trouble can seek out those that don’t run checks, or that may be willing to take a risk on a tenant with steady income even if there are blemishes in the credit history.
Providing references is another way to get around strict credit requirements. A recommendation from someone who had financial dealings with a potential tenant that vouches for their fiscal responsibility can go a long way.
Similarly, having someone willing to co-sign a lease is another good approach. For renters who have stable, documented income, providing proof of this can carry a lot of weight with landlords and help offset the negative strike of a bad credit report.
Finally, renters with bad credit may need to be willing to pay higher rental fees. This may be limited to a larger deposit, paying multiple months up front, or higher monthly rent.
In the end, Jordan Russell used a combination of references, a co-signer, income proof and agreeing to pay a bit more in rent each month in order to get in the door of a desirable apartment complex.
“The extra rent is worth it,” said Russell.
This article originally appeared on TheCoffeeDesk.com
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