One of the toughest things to overcome, not just with renting an apartment, but with life in general, is dealing with the issue of Bad Credit. Bad Credit can follow you around for a long time. Any marks that are on your credit report will stay there for 7 years.
This means that it is going to be increasingly difficult for someone with bad credit to get a credit card, buy a car, or rent an apartment.
But what do you do if you have a REALLY good rental history, and your bad credit has nothing to do with renting at all? Can you still get that apartment you want?
I am going to go through how landlords view both your credit report and your rental history, and what goes into them making a decision to allow you as a tenant. Also, I am going to fill you in on some crucial things that can help you overcome your low credit score, especially if you have a good rental history.
Rental History Unsatisfactory or Insufficient
Your rental history is important to your landlord because they want to know that you have a record of renting from other places and the experience has been good for both you and your previous landlords.
An apartment application always has a place on it that wants an applicant to list their Rental History on it. If you are doing your application online, which is standard now, if you don’t list any rental history, your application may come back denied as having “insufficient or unsatisfactory rental history”.
Now, if you HAVE rental history, but don’t want to list it for obvious reasons, then that is something you are going to have to work through in another way. But what if you don’t have any rental history because you haven’t rented before? What then?
Well, landlords only want your rental history so they can, if necessary, call your previous landlords to see how you were as a renter. Did you pay your rent on time? Did you treat the apartment well? Did you get your security deposit back? Would they rent to them again?
Not having a rental history isn’t the end-all for your renting prospects, even if you get your application rejected right off the bat because you don’t have any previous rental history. You simply need to show the manager or landlord that you are responsible, capable of making the payment, and a good risk to take as a renter.
As I have mentioned in other articles I’ve done, having no record at all is MUCH better to a landlord than having a rental record with negative marks on it. While the landlord doesn’t have the assurance that you are going to be a good renter based on your previous rental history, you are able to show them by default that you don’t have a negative record.
This gives you two opportunities.
The first is to, obviously, have the opportunity to convince your landlord to take a risk on you BECAUSE of this reason. Turn the deficiency into a strength. Confidently present this to your landlord, show them your other strengths of a potential renter, and showcase the positives. Your landlord is LOOKING for a reason to rent to you to fill their units, not the other way around, so give them a reason to rent to you.
The second opportunity is the ability to keep your clean rental history record. If you are worried about renting with no rental history, be MORE afraid of renting with a BAD rental history.
At this point in your renting career, you have a clean slate, something most people don’t get to say they have. Keep this record clean AT ALL COSTS! You will seldom get this chance again in your life, and there are literally millions of people out there that would kill to have a clean rental record.
Keep your rental history clean!!
Rental History Credit Score
Any deficiency in your rental history will show up for 7 years on your credit report. Your landlord can see your record if they have an applicant go through a credit check when they are applying for an apartment.
Know that your rental history isn’t a secret. Well, it’s only a secret if you have had no problems paying your rent or keeping your apartment in shape. If you have struggled with this in the past, have chronic late rent payments, or left physical damage at the apartment complex, this will be on your credit report. So, even if you and a bunch of friends rented someplace when you were 19 and it all turned sour, it could STILL show up on your credit report as an “inquiry”.
This is why I am SUCH a big proponent of a Roommate Agreement. The last thing you want to have happen is to have your rental history brought down by someone else. A Roommate Agreement is a contract made by roommates on how to act and behave when you are renting together, who pays how much rent and when, and who takes care of cleaning and general maintenance in the apartment.
It also details the specifics of what happens if and when someone decides to leave the apartment early so you aren’t left holding the bag. If this happens and you aren’t able to pay the rent in full each month through the end of the term of the lease, you will have multiple negative marks on your credit report.
As I mentioned above, if you have a clean rental record, KEEP IT CLEAN.
Can Landlords Check Rental History?
Landlords can check rental history in two ways. The first is by calling previous landlords you list on your rental history sheet. The second is by referring to the credit check they had you do when applying for the apartment.
Do landlords really call other landlords? Yes, they do!! It is one of the most effective ways of directly confirming what type of tenant you were in the last place you lived. This is a standard practice among landlords. And while they can’t ask personal questions about you, they CAN ask questions pertaining to your renting with them.
With many online applications, a background check and credit check is becoming standard procedure with landlords. That means it is increasingly difficult to hide bad rental experiences on your record.
Any delinquencies in payment, eviction, or destruction of property are going to show up on your credit report. And that report is going to show that to anyone who runs your credit for the next 7 years. So, even if you are trying to hide your rental history from a new landlord, chances are, they are going to be able to find out how you have been as a tenant during the past 7 years.
How Much Rental History Do You Need?
The quantity of rental history isn’t nearly as important as the quality of history. Even if it is your first time renting, that means you have no negative marks on your rental history. This is preferable to having a long rental history with even a single negative mark on it.
Remember, the ONLY reason your landlord wants your credit report or rental history is to see what kind of renter you have been in the past. They want to see if making a decision to rent to you is going to be a good decision on their part or bad. Also, it is important to the rest of the tenants in the complex that the landlord does this as it creates small barriers to entry into the complex. This helps weed out bad tenants that have the possibility of causing problems for the landlord and other tenants alike.
If you DO have rental history, and your landlord is asking that you provide it to them in writing, going back the last couple of years is usually acceptable. No more than 5 years is needed in almost any case. Landlords are the most concerned about the last couple of places you have stayed because they are the most recent.
Simply give the landlord the names, address, and contact information for the last couple of places you have lived. Your landlord will start by calling the most recent landlord you stayed with. They will ask them all of the questions I have laid out in this article. If they call the first one and they sing your praises, more than likely you are going to get the apartment.
Have Good Rental History But Bad Credit?
Don’t fret.
Your landlord is way more concerned with you being a good tenant and renter than if you missed a car payment 5 years ago. They only want to know how good of a renter you are going to be for THEM, nothing else.
Now, if your credit score shows that you have a dozen creditors coming after you from chronically not paying your debts, then they are going to have a concern about that. But if you simply have poor credit, but have shown and proven yourself at being a good tenant, then you should be able to overcome this shortcoming on your record.
If needed, get a cosigner to sign the lease with you. That will give your landlord an additional layer of security when considering renting to you. Additionally, perhaps suggest to them that you pay a couple of month’s rent upfront to accomplish the same goal.
In the end, know that landlords are looking PRIMARILY for evictions on your rental history.
If you have a good rental history, you should have little problem renting at a complex unless there are other things in your credit or background check that raise red flags. Know that landlord are interested in how good of a renter you are going to be, and so are going to be more focused on aspects of your history like evictions.
If you have a good history, but poor credit, show your landlord your positives, why you would be a good tenant, and more than likely, you are going to have success in getting that application approved.
