Hi guys! With the weather getting warmer and school letting out, the rental market is definitely picking up. So I thought it would be a good idea to write a quick blog post with some tips for people who are looking to rent a home but don't have great credit history. I've been receiving a lot of phone calls lately with people who are all in similar situations. With the economy crashing in 2008, many people had fallen on hard times and as a result their credit history has suffered. Whether it be from a loss of a job, a foreclosure, or short sale on their home, many people just don't have the credit score they would like. So here are some quick tips on things that you can do to improve your chances on getting that rental home that you desire.
1. Write up a letter of explanation as to why your credit score is low. It can be a loss of a job, foreclosure due to the housing market crashing, health issues etc. Also try to explain how your situation is different or improved now, i.e. new job, better pay, more hours, additional source of income, etc. You also want to show that even though you may have had some negative marks on your credit history in the past, you are up to date with all your bills currently and are paying your expenses/bills on time. Basically, you just want the prospective owner to know that your past is your past and now you're back on track and are currently able to handle your expenses in a timely and responsible manner.
2. Have your employment and income verification ready and handy. That means bring your last two pay stubs and proof of any additional income for when you submit your application. This let's the prospective owner know that you are currently employed and won't have any issues in paying the rent and paying it on time.
3. If possible bring a letter of recommendation from your previous landlord stating that you paid your rent on time and were a responsible tenant. Or if you can bring copies of your cancelled checks showing that you paid your rent on time helps as well.
4. We all know the saying, "Cash is King" so in the event that your credit history is flat out terrible and you don't feel that it will allow you to get into the rental home you desire, the best thing we recommend is being able to offer a whole years worth of rent up front in cash or certified funds. I know that this is not always possible, as that does add up to a large sum of money, but sometimes difficult situations require difficult solutions. In the event that you cannot afford to pay the whole years rent up front, offer to pay a larger security deposit or even a couple of months up front.
I hope these suggestions have helped, and as always if you are looking to move, relocate, or just want a change of scenery, Cornerstone Realty and Rentals is here to help you with all your Real Estate and Rental needs. Please contact us below with any questions or more information on rentals in your area.
Kind Regards,
Peter Lee
www.cornerstonerentalschicago.com
847-496-0081
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