How to Get an Apartment with a Bad Rental History

What is a bad rental history?

A bad rental history can make it harder to rent a home. But what exactly qualifies as a bad rental history? Here are some things that might show up from your past and give future landlords pause.

• Past evictions. If you were evicted (legally removed from the apartment) from previous apartments, it can stay on your record for seven years.
• Late payments. Previously and frequently missing rent payments in the past can make a landlord assume you will be spotty in paying them as well. 
• Property damage. If you caused significant damage to previous rentals, this will also not be looked on kindly by the owners of your would-be next rental. 
• Illegal activity. Conducting illegal activity from your previous rentals is also likely to work against your ability to get your next rental. 

If you've had some issues, like the above, in the past, there are ways to help fix and offset them. 

1. Understand your rental history report

Before you can address issues, you need to know what they are. If you’re having issues being rejected by potential landlords, obtain a copy of your rental history report from tenant screening services or your previous landlords.

A rental history report contains information like your past rental addresses, contact information of former landlords, dates you lived at those locations, your monthly rent, record of late payments or missed payments and history of broken leases or evictions. Review it carefully to understand what negative marks might be causing concerns for potential landlords.

2. Clear outstanding debts

If you owe money to past landlords, apartment complexes or property management companies, prioritize paying off these debts. Providing proof of payment or a settlement agreement can demonstrate responsibility and your commitment to rectifying past mistake and make up for a poor payment history.

3. Provide references

Character references can be powerful tools in overcoming a bad rental history. Ask previous employers, colleagues or even neighbors to vouch for your reliability and character.

Personal references can sometimes offset a poor rental history by highlighting your positive attributes and trustworthiness.

4. Show proof of income and employment stability

A steady income reassures landlords that you can afford the rental property and won’t be making late rent payments due to lack of funds. Gather documentation such as pay stubs, bank statements or a letter from your employer verifying your income and employment status. Stability in your job suggests that you are less likely to miss rent payments.

5. Offer a higher security deposit or co-signer

Consider offering a larger security deposit to mitigate the perceived risk. Alternatively, a co-signer with a strong credit history can provide an additional layer of security for the landlord. Both options show that you are serious about securing the rental and willing to go the extra mile.

6. Be honest and upfront

When discussing your rental history with a potential landlord, honesty is the best policy. Explain the circumstances that led to your poor rental history, whether it was due to financial hardship, job loss or personal issues. Demonstrating accountability and willingness to discuss your past openly can build trust.

7. Show evidence of rehabilitation

If past issues involved property damage or conflicts with neighbors, show evidence that you’ve addressed these behaviors. This could include letters from previous landlords stating that you left their property in good condition, or documentation of completed conflict resolution or anger management courses.

8. Improve your credit score

Turning poor credit or fair credit into a good credit score on your credit report can help counterbalance a negative rental history as many landlords or property management companies will do a credit check.

Easier said than done, right? Credit bureaus use a number of factors to determine your credit score. The biggest ways to fix a low credit score are to pay down existing debts, make timely payments and reduce your credit utilization ratio. A higher credit score indicates financial responsibility and can reassure landlords of your ability to manage rent payments.

9. Find a private landlord

Private landlords may have more flexible criteria compared to property management companies. They might be more willing to consider personal circumstances and references rather than strictly adhering to formal rental history reports.

10. Consider a lease guaranty service

Lease guaranty services act as insurance for landlords, covering missed rent payments if you default. These are similar to a guarantor who you know (like a parent who is willing to co-sign), but instead operate as a business. While this typically involves a fee, it can be an effective way to secure a rental when your history is a barrier.

Wrapping up

The rental market can be tough. And overcoming a bad rental history requires diligence, honesty and strategic action. By addressing past issues, demonstrating financial stability, and providing strong references, you can improve your chances of securing your dream rental unit.

Remember, everyone makes mistakes, but showing that you’ve learned from them and are committed to being a responsible tenant can go a long way in the eyes of future landlords.