A Multi-Family Home

Strategies For Successfully Renting A Home Post Bankruptcy

by Arnold Gomez

If you need to move your family to a new rental home but have a bad credit score from filing bankruptcy, then you will be pleased to learn that there are some strategies you can use to find suitable homes for rent, including the following:

Rent from an Individual Not a Property Management Company

Generally speaking, renting a house is going to be harder with a low credit score (about 300 to 680) if you try to rent from a property management company rather than from an individual landlord. A landlord that only has a single home for rent will often give you the opportunity to explain your unique situation, and they are more likely to work with you. Providing a large security deposit or paying a few months worth of rent upfront can also help you to successfully rent with bad credit, and while an individual landlord may be willing to make a special arrangement with you, a property management company may not be able to do the same.

Move to an Area with a Higher Vacancy Rate

Since your personal bankruptcy obliterated your credit score, renting will be easier if you target an area with a high vacancy rate. It is always easier to rent where there is more housing inventory rather than in an area where there is a tight rental market and a lot of other renters that you have to compete with. Simply moving to a town next door to your ideal location can be the difference between successfully renting and not being able to find a suitable rental for your family. According to a vacancy census, the Midwest and South have higher areas of vacancy than other regions of the U.S.

Have Someone with Good Credit Cosign for Your Rental

If you expect to be in your rental for a few years, then you can offer to have someone cosign for you. A cosigner acts as a guarantor and agrees to pay your rent if you are not able to do so. After about a year of on-time rental payments, you can ask your landlord to remove your cosigner and free them from this obligation.

Check Your Free Credit Reports Each Year

Finally, you should obtain the free copies of your credit report each year that you are entitled to by law. Check each report to ensure that the information contained within them is correct. Credit reports often have errors that you can have corrected to raise your credit score and make renting a lot easier.