With such volatility on Wall Street and in the real estate and property market, people aren’t as quick to purchase a home or apartment property. The real estate market has taken a huge hit. Depending on what part of the country you live in, home ownership as a realistic option may have disappeared entirely.
States like Florida and Michigan were reporting entire neighborhoods and suburbs abandoned. At a time, “For Sale” signs were as common as pink lawn flamingos and hammocks once had been. Though most of those markets have recovered to an extent, many of the homes became rental properties.
In today’s market, the sub-prime home ownership is still not recovered. Lenders are looking for people that have squeaky clean credit records. Usually even with perfect credit, you’re looking at making a substantial down payment to own a piece of property. Why tie up your money on the roller coaster of the current real estate market, when you can’t pay off your credit card debt? Since we all have to sleep somewhere, you’d be better off renting a property until the soft economy rights itself and your own situation improves.
No Credit Check Apartment Rentals
If you’re like most people, your credit history may not be able to handle another credit check. In this day and age, especially with a bad financial history at your back, it is much safer to rent in the short term than risk buying in the long term.
How can you be expected to even rent a property if you have bad credit?
Luckily, there are many landlords that provide no credit check aparentments. Some landlords just want to see proof that you have a job, and maybe a little bit of positive rental history, before they approve you for their apartment rental.
Finding such a lease may seem like a dream to those of us who have spent days and weeks searching the newspaper and online ads for a place to rent, only to be turned down once the landlord checks out their credit rating. It is easy enough to get discouraged when looking for an apartment in an optimal situation, but when you don’t want the landlord to run your credit, it is easy to lose your head. Luckily, there are ways to secure a lease without the ritual of the credit check.
A landlord vets their tenants for many of the same reasons that any lender does. Landlords simply want a good tenant whom they can trust to pay their rent and fulfill their contract — and in many cases a rental situation can be reached that will make both parties happy. If you want to set up a contract in one of these situations, look in the paper or in the online classifieds for a private landlord, not a major leasing company or conglomerate. Many private landlords have always rented without running credit checks — they’ve counted on their own ability to sniff out a good tenant, combined with a few documents like proof of income and a recommendation from a prior landlord. The fact is, background checks cost the landlord money, and all those bills can add up. Landlords prefer to collect rent than own an empty property, and as long as the landlord in question has your security deposit and contact information, they feel perfectly secure in renting to you without running a detailed investigation into your past dealings.
Rentals with Secured Credit
If you have built up a small amount in your savings account, you can offer the landlord a deal in order to secure an apartment rental without the usual process. Even if you have a bad score or very little history of lending, you can cut a deal with your prospective landlord. Offer a bigger down payment, or consider paying a large chunk of the first month’s rent in advance. Some landlords will even offer a lower rate on rent if you’re willing and able to pay most of a six month’s lease in full in advance. The lesson here is — talk to private landlords, let them know your situation in brief, and you may be surprised at how easy it is to get into a lease. It is best to talk reasonably with this person, to put a human face and a story behind the dry facts.
To avoid having to beg for a rental, there are some steps you can take if you’re not already into your apartment search. As soon as you think you might be interested in moving, obtain a copy of your credit report so you know exactly what kind of financial difficulties you are up against.
Knowing your financial details is a smart first step toward any financial goal.
If you spot any errors, you can take the steps needed to have them erased from your file before you apply for your new rental property. Once you have cleaned up your credit report as best you can, it is a good idea to prepare an open letter explaining the circumstances that caused you to have a poor report. This can be given to any of your potential landlords or lenders when you began to hunt for a new place to live in earnest. Do not try to hide the facts or act like trouble never happened. A honest handling of the facts is much more impressive than lies and evasion.
It never hurts to try and score points with a potential landlord through your physical appearance. Make sure you are dressed appropriately when you go to look at the apartment and meet the landlord or leasing agent. If you look neat, clean, and sincere, the chances that you will walk out with the lease to your new apartment in-hand grow exponentially. There really are such things as no credit check apartments, and one can be yours if you take the time to make a plan for relating your story. Honesty and straightforward, pragmatic solutions will make you look like a good potential tenant in the eyes of your new landlord.”