When clients come into our office who are giving up there home in bankruptcy they usually are always worried that they will not have a place to live after the bankruptcy is over. More often then not, they want to give up there home but feel like no one will rent to them after they file bankruptcy. If you are planning on renting a home or apartment and have a past bankruptcy, there are some things you should know.
Who Will You Rent From After Filing Bankruptcy?
First, you need to determine who you are planning to rent from – meaning a private party or a property management company.
Depending on who you plan to rent from will determine what you need to qualify to be able to rent. Each one usually approaches the rental process very differently. If you don’t know what their process is, you could end up being out $60 in credit report fees alone.
There are a number of strategies you can use to increase your chances of being approved for a home or apartment rental after filing bankruptcy. Let’s take a look at the different strategies when you plan to rent both from private parties and property management companies after a bankruptcy.
Applying For a Rental After Bankruptcy
The starting point if you are applying for a rental with a property management company is to find out what their rental criteria is. It sounds like common sense, but a lot of people submit a rental application, with a non-refundable credit report fee, only to be turned down because of their credit history. By calling and asking questions prior to filling out any type of rental agreement you may be able to get the criteria needed to be approved. Thus, saving you a lot of time and money.
If you have a bankruptcy it doesn’t necessarily mean you’ll be declined. Much depends on the property management company’s guidelines. For example, a property management company may still rent to you – but maybe they’ll ask for a higher security deposit some may also negotiate certain things into the contract.
Use a Co-Signer After Bankruptcy
Also having a co-signer may be a good way to be approved or showing them a list of references.
When it comes to renting from private parties it can be a much different process than renting from property management companies. Private parties often tend to be less rigid in their rental screening process. One of the best ways to be approved is to be upward and honest. Many people may still rent to you even knowing that you have a bankruptcy on your record.
Tips for Renting After Bankruptcy:
So what are some things that you should do in order to be able to rent a home or an apartment after bankruptcy?
- Begin making all monthly payments on time.
- Get a co-signer if you need to
- Show you have some money in the bank
- Show you are working
- Look for apartments that don’t require a credit check
- Offer a larger security deposit
- Provide a list of references (especially references from past landlords you rented from
It is always important to remember that filing for bankruptcy is a tool that can help you get back on your feet. Some landlords may see that you no longer have any credit card debt thus, renting to you may be less of a risk than with someone who has high credit card debt.