Rent Home After Bankruptcy
After you have come out of bankruptcy, you may want to start life anew by buying a home. But that’s not possible until one to two years after bankruptcy because you will need more time to prove your creditworthiness to moneylenders. For the time being, what you can do is to rent a home or apartment after bankruptcy.
Having a bankruptcy does not necessarily mean you cannot find a home or apartment to rent. You do not have to worry about finding a home or apartment to rent because there are several strategies that you can use. First, you must decide where to rent-whether from a property management company or from a private party. Why do you need to know? Each of these options has different rental processes and policies.
If you are considering a rental with a property management company, find out its criteria for screening possible tenants. There are companies that turn down applicants with bad credit history. And the last thing you would want to do is to waste time and money for a rental application that would end up as unsuccessful. Knowing the rental criteria in advance will give you an idea if your application will be approved. That way, you will save more time and money.
Interview the apartment manager and ask him how important your credit score is in the approval of your application, how much the security deposit is, and how much income you need to qualify for an apartment. It also helps to know what credit reporting firm a property management company uses in making a rental decision. You may as well ask if the company has previously approved applicants who have filed bankruptcies.
Renting from private parties is quite easier than from property management companies. You can convince a landlord to allow you to rent his house or apartment in several ways. The easiest technique you can use is to create a great first impression. The landlord may judge you based on your appearance, behavior, and even the car you drive. Do not present yourself as though you have just been dead broke. Looking like you have been bankrupt for years is a real turn off for many landlords. And please, do not dare drive that car of yours with sloppy hood and broken muffler. Your prospective landlord may think that you will not be able to pay your rental fee as much as having your old car fixed.
Second, it pays to be honest with the landlord. Tell him that you have just recovered from bankruptcy, and assure him that you have learned your lessons so well (albeit in a painful way) that you now promise to pay on time. In addition, explain the reasons for your bankruptcy, as well as your action plan to prevent that from happening again.
If you rent a home or apartment after bankruptcy, you have to choose one carefully so that you can avoid possible problems that stem from the fact that you had filed a bankruptcy.