Will Landlords Rent To Tenants Who Have Declared Bankruptcy?
Do the estate agents run credit checks on tenants as a run of the mill thing, or do they have to specify if they do it?
If an applicant has declared bankruptcy but has always had a good rental history and never defaulted on rent do they still have a chance?
Tags: bankruptcy, Declared, Have, Landlords, Rent, Tenants, Will
February 15th, 2010 at 1:50 pm
While bankruptcy is frustrating for all creditors, landlords who know the rules can protect themselves better than other creditors when dealing with tenants.
With the economy being such turbulent, these kind of thing are going to happen. But as a landlord I will surely opt for tenant screening to look at his background and rental history. If it says that he has never defaulted on rent payment in the past, then I might rent him my apartment after looking at his current employment status.
I will also run a credit report on him. After having a look at his spending habits, I can have an idea about how much he can afford to pay as rent.
Though not all landlords will agree with me I will surely get a tenant screening report on my prospective tenant, as it will be very helpful for me.
February 15th, 2010 at 7:24 pm
There are two types of landlords. Those with brains and those with systems. Either can be successful.
Those with a system will probably say No as soon as you walk in the door. Just keep walking, this is what you signed up for when you chose bankruptcy.
Those with a brain will probably understand that you are a better risk the day after you file bankruptcy than you were before.
After filing, you no longer have creditors threatening, judgments pending and garnishments possible.
Credit collectors have and a whole range of psychological tricks designed for you to spend your rent check to resolve your old credit card bill. There are very, very few instances where that would be a smart idea. But people get threatened into it all the time.
Now, sometimes those landlords with brains are smart.
I’ve worked with some before. They’ll review your case filing. They’ll make sure you’re not still broke because of some car you still can’t afford. They’ll compare their rent to your old rent.
I worked with a good friend who rented their home out to someone in a bankruptcy and hopes to close of the lease/purchase side of the contract.
Digging deep in that paperwork showed that the bankrupcy was set up as a Ch13 in order to stop foreclosure on a home they were really stretching to afford.
The problem that lead to the bankruptcy was solved, they let go of the home. They’ve been solid renters.