how do rental agency look at bankrupcy as potential renters?

Asked by Diann Brooks, San Leandro, CA Mon Feb 13, 2012

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John Souerbry, Agent, Fairfield, CA
Mon Feb 13, 2012
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I'm a property manager and see bankruptcy and foreclosure on credit reports all the time. As long as the debt has been discharged, we don't include it in the income/expense ratio that we use to qualify the potential tenant. If the debt has not yet been discharged and is still payable, we'll ask an applicant how they intent to satisfy the debt and still keep their income/expense ratio within our qualifying percentage. I obviously can't speak for other landlords, but we like to see monthly expenses below 45% of gross income and we verify current employment. I hope this information helps.
1 vote
John Arendsen, Agent, Leucadia, CA
Tue Feb 14, 2012
As a property manager I see Bk's frequently. It's not as problamatic as someone with a history of skips, write off's, slow or no pays and deliquent rental history. These are the things most PM's look at I think.
1 vote
Suz A, Agent, Longmont, CO
Mon Feb 13, 2012
I work for a Colorado real estate firm that does property management. We look at length of employment. The discharge of bankruptcy is what we look for, too. But it's far less important than a steady job.
1 vote
Dan Tabit, Agent, Issaquah, WA
Mon Feb 13, 2012
Diann,
Landlords each have their own criteria for deciding who they will rent to. It is as varied as there are landlords. I'm sure few if any prefer their tenants to have gone through bankruptcy, but it's a fact of life for many Americans in our current economy.
If you are declined, you can offer to increase your deposit, pay several months rent up front or seek out another way to satisfy the landlords concerns. Realize a landlords worst fear is having to evict a tenant. It can take time, cost money and tenants that get evicted rarely treat the property well.
If you went through a temporary tough time and have come out the other side, resolved your issues and can provide a landlord with some reassurances that you will be a good tenant, you should be able to find a nice place to live.
1 vote
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