Would You Rent to Somebody with Bad Credit?

Well, my husband and I are in the opposite position. My husband lost his job, our mtg. went up, and we have been fighting with our mtg. company now for over 2 years, trying to get a modification~which was denied because our value dropped so badly. So, now because of that, our credit is shot because of our mortgage alone. Are we bad people? NO. Did we have some financial problems? YES. Will we live like that forever? NO. We are going to be relocating and renting for a few years. I just hope that I don't run into some landlords like previous posters. Our credit is bad because of an unfortunate situation that we were unable to resolve. That does NOT mean we are still in the same situation. Some people just need to start over from scratch, and that sometimes means needing second chances in life.

5 moms found this helpful

my family has had rental props since I can remember..they rent based on credit, referals and personal experience. If the credit is good, great,...if they have good referals (pay on time, good renter etc) then good regardless of their credit score..OR if someone has bad credit, and they needed a co-signer for the lease(in my parents situation, this girls father co-signed)
If you are really worried...make them have a BIG deposit...if they want to live their...they will make it work regardless of their credit...I say work with them, but give them some hard rules....(big deposit..you miss one month, you are out..type thing)
EDIT...I wanted to add after reading a couple posts...just because someone is a good person, that doesnt mean they will try to stretch the generosity you have given them or push the envelope...some of my best friends who are good people, have ripped others off left and right....just saying
peace ladies

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We've had numerous rental properties. We usually look for rental history. Most people, with good credit, are not your typical renters. They usually buy. The renters I have found with good credit usually don't take care of properties....usually professionals like doctors and judges. (Ok, you guys with good credit that rent, I am not attacking you, lol) Sometimes the best tenants are the ones that believe you are giving them a chance to prove themselves. Your best bet is to talk to them. Get their story and why they want to rent your property. People like to talk about themselves. If you're a good listener you'll know if they are shooting you a line or giving you the straight skinny!

Good luck!

M.

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No.
If a prospective renter does not pass the credit check, I do not rent to them.
Times are tough. And I need that income.
Renting is a competition, because you are competing with everyone else who wants to rent and a person with good credit scores will win over a person with bad credit scores.
Credit can be repaired over time, but it's not easy.
That's why it's important to not let it slip.
The most recent track record is more important than distant past behavior.
People are creatures of habit and tend to keep on doing what they are already doing. If you've been comfortable with not paying your bills/utilities - I don't want to be the next person waiting on you for money.

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I think it is worth it to take a chance on renting to someone if they can prove that they have good rental history. I think good rental history is more important than good credit.

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I've done the "rental house" thing and looking back, I should have trusted my gut more. Soooooo...I would look at recent credit. If recently it's not good, I wouldn't think they could pay now..which is what you're looking for. God bless you--I would never do it again. Never had one tenant who left the property remotely in the condition it was when they moved in.

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We are going through this right now. We have our house up for sale. Because we have to move (and want to realllllly bad) we have to short sale, due to the economy. This is going to wreck our credit for atleast 2 years. We were talking to our realtor about how our credit is going to suck and hoping we will be able to rent. He does property management also, and basically told us he hardly looks at credit. He looks at how stable of a job this person has, how long they have been working, and how much they make. I would rent to somebody with bad credit, because most people these days have bad credit. Just do a little more digging on other factors.

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I think it is situational, based on your explanation ... I would consider it, maybe ask for a larger deposit or something along those lines. I do not have the best of credit but I have had good rental history and typically do not have a difficult time renting homes.

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I think that whether you have good credit or not, it's how that person makes you feel when you talk to them. Use your intuition. Like Nikki posted credit doesn't = good person. I think the best bet is to get a reference from their previous property. Call them and ask what kind of renter they are.

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I went through a divorce and all the credit was in my name so, of course, I get all the dings to my credit. I always had fantastic credit. I mention to my daughter that it is funny how I have not used credit cards once since the divorce but still have the bad credit. I want a clean start where I am paying for my faults. I am not a bad person. I work everyday and keeping a roof over our head is very important to me. I respect other people's property and would definitely keep up my end of the bargain if someone were to stick their neck out and rent to me. There are so many things to consider when you are renting a home out.

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With the economy being what it is, people losing jobs and unable to find new work, and business going under overnight, I would look at the entire 7 years of credit history. I would also take into consideration what they have told you about why their credit has taken a nose dive during the last couple of years. Also trust your intuition about the possible renter -- do they appear to be relatively stable, make good eye contact, honest about what has happened? I think that in today's day and age, that would be the most kind and compassionate thing to do.

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I would look at rental history and would require solid landlord references (non-family). If there were no late pays on rent within the last handful of year, a verifiable source of income, and a history of mostly good track record, the score itself wouldn't matter so much.

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No! We've been renting out a property for a few years. We turned down a gentleman b/c of his bad credit. If he won't pay his bills in time, why would he pay us in time? It was a risk we didn't want to take. In this economy, there are a plethora of renters out there. Keep looking. We kept looking & found wonderful renters!! We never have to worry if they will pay.

P.S. The guy we turned down had 2 luxury vehicles & didn't pay his bills. So, I guess we looked into his "story" a little...a person who buys cars he cannot afford & doesn't pay his bills is not someone we'd want to rent to.

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i would probably take into account the reasons for the bad credit (medical bills would not be an issue) but a bad credit score would cause me to go over the report with a fine-toothed comb and to ask a lot of questions.
khairete
S.

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I would ask for rental references. Some people have not so good credit could be from credit cards maxed out and they pay there monthly bill on time but having your credit cards maxed out can make you not have good credit. I would also ask for like 3 references from companies that show they pay there bills on time like electric, water, and phone company as well. Just like if you was going to buy a house.

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How was the credit related to housing? That would be the first thing I would consider.
it sounds like bad time caught up with them as they do most people lately.

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I have HORRIBLE credit because of past-due medical bills. I was told they wouldn't affect my credit, but they sure did!!! (I talked to the bank, and they are the only 'dings' on my score...) I got these medical bills when I was 18, which totalled over $20,000... I paid off several thousand of it and thought I was done, when my mom called me to let me know I had mail at her house that had been sitting there for 2 years!!! They were more bills that I didn't even know existed. (I had paid off the hospital itself... the bills that got sent to my mom's address were the anesthesiologist, the surgeon, and a bunch of my follow-up bills.) My mom had filled out some of my paperwork, because I wasn't capable at the time, and put her address. They had been sent to collection agencies, which screwed up my credit BIG TIME. But, even with my horrible score, I have NEVER been late paying rent, utilities, cell phone, etc. So having been there, if I had a rental property, I would probably be more sympathetic to a poor score. I am STILL trying to get some of those medical bills paid off, (still have about 10,000 to go...) but it's difficult when I'm paying my more immediate obligations, trying to take care of my baby, and get laid off...

Usually, I am able to work a deal with landlords who go based on credit scores that if I add an extra month's worth in my deposit, they will let me rent. That gives them a safety cushion in case I don't come up with the rent (which has never happened).

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Ive rented out my property 3 times, never once did i run a credit check(honestly wouldn't even know how to) I looked up their public files though, in my city you can look up anyones criminal history with just their full name. I found a felony one time but it wasnt violent and was over a decade old so i overlooked it.

I wouldnt really care about credit, my lease stipulations and deposit protects me from irresponsible tenants.

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I might consider it as one criteria, but not the only one. I have never rented to anyone, but my husband and I have had poor credit for most of our marriage (mostly due to unemployment, resulting in credit card debt/late payments, etc.). Our credit has had to take a hit when we were limited and it was more important to us to pay our rent, car payments, and utilities than a credit card.

Our current apartment is a month-to-month verbal lease and our landlord did not ask for a credit check. I don't think he even asked for references. He met us, we talked a lot, we looked at the place, and I think he asked for work references (can't remember that far back), but we've been renting from him now for over 5 years, take care of the apartment and flower beds, and pay him on time every month. I think that since most people pay rent but might be late on credit cards or carry a lot of student loan debt, etc., a solid rental history and verified employment should outweigh the credit. I have a good friend who also was denied an income-based apartment because of her credit, but she has a solid employment history and several recent and excellent rental references--she just had some late student loan payments.

Anyway, given the economy and how harsh credit scores can be, I would not let that rule someone's life by refusing to consider them as a tenant.

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I would consider 2 years recent, not in the past. Therefore, I would not rent to someone with recent bad credit within the last few years.

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I have to say look at the whole package. It is not true that people with good credit buy and not rent. My husband's job relocates us every 2-3 years, so it makes absolutely no sense for us to buy in this market. Also, be sure to look at more than just the most recent landlord. When we rented in DC, our landlord turned out to be batsh*t crazy. Any request to fix something in the house meant she sat on our couch for 8-12 hours complaining to us about how much money she lost every month as a landlord while her unlicensed "handy man" bumbled around. It was a nightmare. Taking a look at the whole picture will also give you an idea of what kind of tenants they will be and what kind of relationship you will have be it laid back or stressful. Good luck!!

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