How rentworthy am I?

September 9, 2009 4:57 PM

Help me grow up-filter: am I being realistic about my prospects for finding an apartment?

Anon because I am embarrassed about my past fiscal irresponsibility. I'd like to investigate the possibility of renting a new place with a friend soon, and I am wondering how realistic it is, given my financial history, which is spotty to say the least (two chargeoffs, and I defaulted on my student loans long ago but they are now paid off).

I do have several thousand dollars in the bank and I am prepared to front first and last month's rent as well as the deposit (taking the burden off my potential roomie). I have a steady job and would be making 3x my share of the rent.

I have NO background with this kind of thing at all. An overly confident friend assures me that "landlords NEVER check your credit report," and it's true that he does have a decent-ish place and a not so stellar credit history of his own, but I'd like alternate viewpoints/tips before I jump into the deep end of the pool, please. Is the situation hopeless or not? Is there anything I can do in the short term to make myself a more attractive potential tenant?

posted by anonymous to work & money (13 comments total)

This situation sounds far from hopeless. I have a number of unpaid debts, have only very recently paid off my long-defaulted student loans, and have never had a problem renting a decent apartment, even with the few landlords who have done credit checks. From what I have seen, having a steady job (which is very important to a landlord) and references who speak well of you (especially employers or past landlords) generally trump credit issues.
posted by The Great Big Mulp at 5:12 PM on September 9

Are you in a location where there are more tenants than landlords? Is your job stable and recession proof? If so, that's good.

Do not plan to front the entire first, last and deposit. Be prepared to front your share of each. Roommates bail, landlords default on their own loans (and attempt to cheat their tenants). Do what is expected of you - no more. It is your job to pay the rent - not to placate and bend over backwards. You are signing a contract with your landlords and your fellow roommates: you do your part and they do theirs.

You defaulted on your student loan and you failed to pay off two other loans - that's it. It sounds like you have a steady job. It sounds like you make a sufficient amount to cover expenses. You know what it looks and feels like should the situation start to go awry, and from the sounds of things you are older and wiser than before.

Your credit score will hurt you in two situations: you may not get into a corporate style property management place that could have strict rules. You may also not get into the extremely paranoid property owner. You may get flagged and some questions if they are doing their work, so be prepared to answer them - and answer them truthfully, but do not provide unsolicited information (don't say it beforehand) and don't add any additional information than you need to.
posted by Nanukthedog at 5:18 PM on September 9 [2 favorites]

What market are you in? I would say it's a long way from hopeless, the stuff you mention in the second paragraph is pretty nice for a landlord. A lot of landlords check your credit report, some don't, some are receptive to responsible-sounding explanations for what's in there, and others aren't. Unless you're in San Francisco or Manhattan or something I feel like you could land a place eventually though you might be turned down a few times first. Oh well!

You'll probably have better luck working with an individual landlord than through a management company / apartment complex.
posted by Bokononist at 5:20 PM on September 9

Yeah the market you're in goes a long way toward determining whether a credit report is required.
posted by dfriedman at 5:22 PM on September 9

Is the landlord, like, a guy? Or is it a property management company? To be honest, I have limited experience because I'm relatively young and I've only rented from the same individual for a number of years, but I think if it's a company they will be more likely to check you out, probably less so if it's just some person... My landlord was willing to rent to me after a brief meeting and a look at a recent paystubb.

Probably would be a bonus if you live anywhere near a college... I live in an area of town near the local university and there is plenty of housing available for irresponsible and reckless young people (not to say that you are, but there are people out there with much worse history than you who are happily renting, is what I mean).
posted by hegemone at 5:27 PM on September 9

I want to add one thing, do not pay your roommate's share of the first month's rent or deposit. That is their responsibility and not yours. Anyone who is not able to pay their share is not a suitable roommate. Also, you say you are new at this so I will give you one piece of advice that you should listen carefully to: You do not know someone until you live with them. You don't know if your roommate might skip out on you one day or put a hole through a wall and you'd be stuck with the entire hit of the cost if you paid the entire deposit. Deposits exist for a reason and your roommate should pay their share. Also I feel like your potential roommate would care more about maintaining the property if it was their money on the line and not just yours. Oh and make sure your roommate is on the lease, no ifs, ands or buts.
posted by MaryDellamorte at 6:27 PM on September 9 [1 favorite]

You should contact mods and add information about where you are looking and the approximate amount you expect to be paying. You will get much more informed and helpful answers that way.
posted by Perplexity at 7:31 PM on September 9

Landlords care about credit reports inasmuch as they sometimes record evictions. If you have no evictions in your past and have a steady job then there's a landlord somewhere that will rent to you.
posted by GPF at 7:44 PM on September 9

You should be ok. Landlords do check credit (Past two of ours have). References are not always required but they do help. You can also use personal references sometimes. You should be ok since you have 3x rent income as well as savings for a deposit. No worries, you should be ok :)
posted by NotSoSimple at 8:00 PM on September 9

OP, I've had what can be described as difficult credit, and I've rented two residences (an apartment from a rather large management company and then a townhouse from a builder running his own rental business) without having to plunk down any extra money or give any extra assurances beyond what the landlord originally advertised. Then again, I've been at my job a long time and have never been evicted. I think you will be fine.
posted by fireoyster at 8:41 PM on September 9

Yes to what GPF said above. If you have no evictions, cash in hand for the 1st/last/deposit, and a good steady job, you shouldn't have a problem. Maybe a few landlords will reject you, but by and large, you're fine.
posted by The Michael The at 4:15 AM on September 10

Be prepared to pay for the credit check.
posted by Carol Anne at 5:33 AM on September 10

Rather than offering to pay your roommate's half (because I agree that demonstrates his/her own ability to be responsible to you, never mind the landlord), perhaps you could offer to pay an extra month's rent in addition to the normal deposit and first/last that is required. Some landlords check credit, others don't, but I find that a little extra money can go a long way in easing someone's worries about taking a chance on someone with less than stellar credit.
posted by katemcd at 6:12 AM on September 10