How to Rent an Apartment Right After Chapter 7

Usually, when you apply to rent an apartment, your prospective landlord puts you through a screening process. While this often involves a credit check, sometimes it is as simple as asking you questions on an application form. One often asked question is: Have you had a bankruptcy? If you have, the last thing you want to do is lie. Not only is it a bad way to commence a relationship, but if the landlord does run your credit, you'll be caught in your lie. There are ways, however, to win over a property owner's trust in the wake of your bankruptcy.

Instructions

1. Fess up. Some landlords don't run credit checks. Some don't even ask if you had a bankruptcy. In such cases, you might slip through the cracks without your bankruptcy becoming an issue. The odds are, however, that it will come up. It's probably better to explain your situation at the outset so you can provide your potential landlord with some context. If he's understanding, he might just be willing to give you a shot.

2. Save cash. You'll give up some privacy, but showing your landlord bank statements that show you have a stockpile of money saved can ease her concerns about you not being able to afford the rent.

3. Offer to pay more money up front. Most states limit how much money landlords are allowed to ask for at move-in. For example, the California Department of Consumer Affairs points out that landlords in the state can only collect first month's rent plus a security deposit equal to two times the rent on an unfurnished unit. You can, however, offer more. If you are able to pay several months or even an entire year's worth of rent at lease signing, you ought to be in good shape.

4. Provide character and credit references. Your landlord might not be so concerned with how much money you have. He might just be concerned with your responsibility and attitude toward financial obligations. Ask employers and other professional colleagues to vouch for your character in writing. Some entities, such as utility companies, don't always report to the credit bureaus. If you have been on time on your utility payments, ask utility companies to send you a letter of credit. Or ask a past landlords to verify that you have always paid your rent on time.

5. Find a cosigner. If you do, however, proceed with caution. As Maxine Sweet of the Experian Credit Bureau warns, your cosigner is responsible for your lease if you default. Their credit could get dinged if you fail to pay your rent. Don Taylor of Bankrate advises that you make sure that your cosigner is not on the hook for damages if your lease ends up getting assigned to somebody else. He also recommends ensuring that your cosigner has the option to bail out of the agreement when the lease comes up for renewal.

References

• California Department of Consumer Affairs: Tenants Guide
• Experian: Ask Max Credit Advice
• Bankrate: Getting an Apartment After Bankruptcy