Renting a Home after Bankruptcy

It can be difficult to rent a home after bankruptcy, since landlords or property managers are often hesitant to rent to individuals with a bad credit history who they feel may not be able to make their regular rent payments. While this reluctance can provide an obstacle to potential renters, there a few steps people can follow to ease the process of finding a place to rent after going bankrupt.

Save Money

While landlords and property managers are concerned with a person’s credit history, they do take into account an individual’s present financial situation. In fact, most rental applications require potential renters to document the current balance in their savings and checking accounts. The higher the balance, the more likely the landlord will be to approve the application, since they can be assured that the individual who wants to rent a home after bankruptcy does actually possess the funds necessary for at least the initial security deposit and first month’s rent.

Establish Income

Landlords will also want to know about every applicant’s current income. In fact, rental applications often stipulate that the applicant prove that they will bring in a monthly income two to three times that of the amount of rent owed. Therefore, in order to rent a home after bankruptcy, an applicant must not only find and maintain a steady job, but also gather the necessary documentation (e.g. pay stubs or employment verification information) that will provide proof of income.

Evade Credit Checks

While most landlords and property managers require credit checks before approving an application, some do not. To successfully rent a home after bankruptcy, try to find a landlord that does not insist upon seeing credit reports. Often, homeowners who are temporarily renting a house or duplex are the best bet in this regard, as they are not required to provide credit checks by a larger rental corporation. Individuals with a history of bankruptcy should consider properties listed as “for rent by owner” as a promising option.

Meet Landlords

Some landlords, particularly those who act as the sole proprietors for small or individual rental properties, are more concerned with the personality of their tenants than they are with credit history. When possible, an applicant should try to meet the landlord in person, and persuade them that he or she will be a reliable, clean, quiet, and responsible tenant. When the owner of a rental property feels that they can trust one of their renters, they will be much more likely to overlook a history of bad credit.

In addition to the aforementioned tips for how to rent a home after bankruptcy, it is also a good idea to prepare a list of references, which can attest to the financial responsibility of the applicant. Additionally, if an application requires that a history of bankruptcy be divulged (as most do), it is important to honestly and clearly explain the situation to the landlord. It is best to be as transparent as possible in order to establish a sense of trust with the landlord or manager.

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