Need to Rent but Have a "Risky" Background?

By
Real Estate Agent with Alliance Properties

This weekend I worked with a family that needed to rent a home in a big hurry because the rental that they were in was being foreclosed on and they were being kicked out by the bank. The problem was, their credit wasn't the best, they had a foreclosure and a IRS lien in their history about 5-6 years ago. And, because of the oil drilling fiasco in the Gulf of Mexico, they do not have the same amount of income to help them get into a house that they had a few months ago.

They were having HUGE problems finding a landlord willing to take a risk and rent a house to them. I am seeing a lot of this lately. There are many reasons that people do not have perfect credit, such as divorce, job loss, wHouse for rentork hour reductions, or just that debt snow-balled on them. Another thing I have seen alot of lately is accidental renters and landlords. This is when a person owns a house somewhere else far away that they cannot sell because of this weird real estate market. They can't sell it, but they can rent it. But, because they own a house and their income or credit is such as it is, they cannot qualify to buy another house before they sell their house. They therefore end up renting out the house they own up in Ohio or where ever, and renting a house here near their new job. There seems to be quite a chain of renters going on. Many landlords will not rent to people with these "risky" backgrounds.

In the process of helping this family this weekend, I was introduced to  a great product that can help many families that have "risky" backgrounds get into a rental home. It is like Private Mortgage Insurance for Rentors. For a fee, a company will actually "co-sign" for a lease to help assure that a renter will not default on the lease agreement.

Please remember that if you are looking for a house to rent, usually in the Houston area, a landlord will ask for the first months rent and a deposit that is at least as much as the first months rent. If you have pets, you will be expected to pay a pet deposit, and if you have a "risky" background, this co-sign service requires a down-payment and monthly payments. So, if you are renting a house that asks for $1000 a month, you will need to have $2000 plus the cost of the co-sign service. (It varies depending on your risk factors and the amount of rent each month. This family I worked with over the weekend paid a $270 set up/deposit and then there was a $27 a month fee after that for the length of the lease) If you have a pet, expect to pay at least $100 for a pet deposit. Many are as much as $300. It really just depends on the property, but pet deposit details are often listed on www.har.com.

So, if you are looking for a rental in Crosby, Atasocita, Baytown, Northshore, Channelview areas and are worried your background will present a problem, call me. I can help you find a great rental house, and we can use this program to help insure that you will be a good person and meet your lease requirements.

If you have a house that has been on the market for awhile, but you are afraid to become a landlord to "risky" renters, this program can help you feel more secure with your property. Maybe this program will help you get someone into your property so that you can meet the notes and move on. Call me, and I'll explain how I've had LOTS of success leasing my own personal properties!

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Comments (2)

Cindy Bryant
Redesign Etc. Home Staging - Houston, TX
"Houston Home Staging Pros"

Congratulations, your post is being featured in the group "All About Houston...And You!"

Mar 02, 2011 10:33 AM
Andrea Lueth
The Real Estate Experts - Sugar Land, TX
REALTOR - Sugar Land Texas Homes for Sale

Great post. I deal with a lot of leasing clients whose backgrounds are very similar. It seems to be very common. I have fortunately ran into some flexible landlords and property management companies who were willing to work with some of them. What is the name of the product you mentioned?

Jan 12, 2012 11:28 AM