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How much does credit count when renting a home? Is there more leniency now due to how badly the economy has effected everyone?
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Perhaps if you think about it from the landlord's perspective ....they like you need to be sure that they can make the payments they owe on the property ....so they are probably willing to look at the 'whole' person's financial profile but do need some peace of mind also.
This economy is affecting everyone and landlords know that. Landlords are much more lenient and forgiving of bad credit now than in the past. Most landlords do not have a problem with renting to someone who recently went through a short sale or foreclosure as long as your other debts are current.
Hi Anonymous: I think this depends on the landlord ?? and to some extent you. What i would do is approach landlords directly. Be honest with them about your situation and make sure you create a good impression by dressing conservatively and being pleasant and positive when you visit the property. I would not necessarily tell them about your economic situation ahead of time, but I would go to see the property and make a good first impression, then, early in the meeting, ask if they are flexible enough to accommodate your situation. I hope this helps. Ron Rovtar, Prudential Real Estate of the Rockies, Boulder, CO.
I am finding many landlords are in that position because they HAVE to be, they don't WANT to be. They can't sell their home so they are renting it, because they have to move for whatever reason. Therefore, credit becomes a very important factor to that type of landlord. Why rent to someone who has a history of NOT paying their bills? And when they NEED to make sure that bill is getting paid. It really depends on the landlord's personal situation as well as just how bad is the potential tenant's credit. Case by case like everyone else is saying.
I echo David's comment and would like to throw in my 2 cents worth... More and more land lords realized the credit score is not sufficient to evaluate the prospect tenants, they go with verified income and the debt ratio. Even though someone has a low FICO, if his/her documented income is good and has not too crazy credit card debt, he/she can be a very desirable tenant.
While not as important as when doing a purchase, credit does play a key role in determining the "quality" of a prospective tenant. If credit reports show a prospect to be habitually late and delinquent in paying open accounts and having collections then they would be a bad risk for a landlord. Conversely if someone had a financial hardship resulting in a BK or foreclosure/short sale they might still have good income and a clean record up until the present and these people would be a better risk.
answer by
Suzie
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answered questions:
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I Wanted to remain in my home forever. B of A promised a remod when the economy went bust. That is not what happened. They raised the payment. I have an income but my expenses are great with this very lowered economy,health and the mortgage promises. Finally, I finally agreed to do what they told me to do ,and they did not help. I have been scammed by everyone. I am scared, depressed, and wonder if anyone cares.
Yes. More landlords realize that people have lost their homes in foreclosures and short sales and are willing to factor this in.
Jeff Masich
HomeSmart Realty
Scottsdale
Jean's answer is correct. It is up to the individual landlord, and definetly on a case by case basis. Most landlords I work with realize that someone with perfect creditr would more likely be looking to Buy and norent. They usually expect some bumps and bruises in the credit report.
Most landlords require fairly decent credit. Most I have worked with are accepting or understanding though. They evaluate on a case by case basis.
Jean Ransdell
48-294-3257
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