Renting After Bankruptcy
Posted by Jennifer
As with everything else involving your finances, renting after bankruptcy is going to be very different than it was before.
The first thing that you need to be aware of is that you are most definitely going to have to pay a very large deposit. You will probably be asked to pay enough to cover last months rent plus an additional security deposit amount. You’ll want to know this ahead of time so you can make sure you have that much saved. This money should be refundable at the time you move out. Despite this large deposit, you are still going to have a hard time finding a rental, particularly depending on how recent your bankruptcy was. The more recent your discharges, the harder it will be. That doesn’t mean it’s impossible though (even though that’s sometimes how it will feel).
The problem is that most big companies will have policies that are going to rule you out, and they aren’t going to be willing to consider going around them. They simply aren’t interested in working with you. To get around this, you want to look elsewhere–look for an individual renting out their property who is going to be okay renting after bankruptcy. Be up front with this person from the get go so that you don’t waste your time or theirs. Tell them you have a bankruptcy in your past. If you have a good rental history (clear of evictions) tell them that. If you can, get some letters of reference from past landlords. You probably won’t be accepted at every individual landlord (and they are getting harder to find these days) but eventually someone should look at your situation and be willing to work with you.
To find individual landlords, look both online on websites like craigslist and your online local newspapers classifieds. Also look in print on your local newspapers classifieds, as often these ads are different. A lot of individual owned rentals are run by people who do things the old fashioned way, so print papers are a good resource. You can also drive around your town and look for some “for rent” signs yourself. Another way to find a place is to ask around, ask your friends, post on your social networks–these people may have rented from a great guy before and be able to send a lead your way, and you could then use your friend as a possible reference to get in the door with your prospective landlord.
As with all experiences after bankruptcy, keep in mind that the more you do to improve your credit in the years following the discharge, the easier renting will become for you.
Tags: after bankruptcy, after bankruptcy goals, credit after bankruptcy, faqs, life after bankruptcy