Renting after bankruptcy can be a major challenge for people looking for either a house or an apartment. Landlords customarily do credit checks on potential tenants, and it is their right to do so because they need to be able to judge whether a tenant is going to be a good or a bad credit risk. A bankruptcy on your credit report is one of the biggest red flags to a landlord, and if you want to be able to rent a place to live successfully, you are going to need to compensate for that red flag somehow.
Overcoming the Challenge of Renting after Bankruptcy
When you go looking for an apartment to rent after you have filed for bankruptcy, there are some properties that are going to be more difficult to rent then others. For example:
- Larger properties and those managed by management companies are usually going to be the most difficult properties to rent. Most of these large properties and management companies have blanket policies in place that are set by high levels of management and that aren't going to be changed. This means if you are talking to a property manager who works at an apartment complex, you may do all you can to convince him to take a chance on you, and it is not going to do any good because he has to follow the policies that are in place. If those policies say "no prior bankruptcies," you are out of luck.
- Properties that are rented by individuals may be easier to rent for a person after bankruptcy. You can talk to the landlord/owner face to face in these situations, and you can explain your bankruptcy and help them to see why you won't get into financial trouble again.
One of the best things to do is to try to find a property where you are working directly with a person and can meet face to face. Of course, this means that your appearance when you go to meet with the landlord, and the way you conduct yourself, is very important. You need to be friendly, warm and open about your information. You need to look like you have your act together, create a professional first impression, and have pretty clear reasons why you are a safe bet. If you have, for example, evidence that your past bankruptcy was caused by a medical emergency that has now been resolved (like medical records from the time and your current health insurance card so they'll know it won't happen again), then this can go a long way towards convincing them that you aren't as risky as you seem.
Other Things You Can Do
There are also a few other things you should think about when trying to rent after bankruptcy that can help you to get into an apartment. For example:
- The larger your security deposit, the less risk to the landlord. Save up your money and offer to pay a few months in advance to encourage and inspire trust.
- The longer the amount of time that has passed since your bankruptcy, the less impact it will have. This is especially true if you've taken credit-building steps in the meantime. This means you should wait to move if possible, and don't try to go looking for a new apartment the day after your bankruptcy case has been dismissed.
- Getting a co-signer can also reduce risk to the landlord; you may considering asking close friends or family members if they will vouch for you.
Getting Legal Help
You may wish to speak with your bankruptcy lawyer about the challenges of renting an apartment after bankruptcy. Your lawyer is your advocate and guide throughout the process of filing bankruptcy, and he may be able to provide you with information about landlords that have been responsive to past clients. He can also help you to understand exactly what impact the bankruptcy filing will have on your credit.
