Post Bankruptcy Trouble Renting? Any Tips?

[Redshirt]

We had Chap 7 BK discharged in April. I am half heartedly looking for a rental since I do not have to be out right away (waiting for foreclosure ofn house) . I have turned in 1 application with a property management company and reached out to 3 private landlords. All 4 have said no because of the bankruptcy. The application rejection said "he's been burnt before". One of the private landlords said "you can't afford my house" Even though I merely told him we had filed/discharged, no financials or even jobs were mentioned. The other 2 just said no.

This has me extremely nervous. Are we going to end up paying a fortune in application fees when we HAVE to move? Or have I just had a string of bad luck. I knew it would be an issue but didn't realize we would be flat out turned down without even seeing our financials (the app was the only one that knew any of that, other three I brought up bankruptcy as soon as I found out the house was available). I wrote a letter to hand in with applications explaining the reason for filing and our current financial & employment status. Is there anything else I should do?

[justbroke]

You just have to try harder. I rented from a national management company in a relatively "expensive" apartment complex just 2 weeks after discharge (of my Chapter 7). It really depends on your overall profile. Most management companies will say that they want 1 year from a bankruptcy discharge. They will also want you to make 3X the monthly mortgage (per month) and may have other conditions.

I know that in some parts of Florida there are management companies that are bankruptcy friendly. You will just need to shop some more and be upfront about your BK so that you don't waste your money on application fees.

[bcohen]

In the future, before filling out an application and paying any fees, you should straight up tell the property manager "I filed for Chapter 7 bankruptcy on (date) and was discharged on (date), is that a problem for your company?" and if the answer is yes then thank you, goodbye. When I start looking for a different apartment this summer, I plan on doing that, and also bringing a compact tape recorder so that if the property manager says that bankruptcy is not a problem, and I pay an application fee, and then get denied for that reason, I'll have their voice on tape saying that the BK was ok, so they will have to give back my check.

Don't let yourself get taken advantage of. If a particular private landlord or property management company won't rent to people who recently filed for bankruptcy, that's their right, but they cannot legally lie if asked for the purpose of pocketing application fees! Having their response to this question on tape will help keep them honest.

[nioka]

Redshirt,

I am in the middle of chapter 7 and awaiting foreclosure. When I first started these proceedings I called several apartment complexes. I explained I was filing chapter 7 and was surrendering my house. In each case I was told that once I was discharged I would have no problem. The only issue that did arise was eviction. I don't plan to be evicted.
I also looked at a real estate website that had a rental section. There were some landlords who posted they would never rent to anyone with a BK. However, there were a bunch more that said if they wanted to stay in business they had no choice but to rent to BK folks. Also most said they had good experiences doing so.
BTW, there are a bunch of videos on YouTube on the subject.
I think you need to be open and honest up front before paying any application fees.

Here is some advice I got on looking for a rental that I believe makes good sense; try to meet with the landlord in person, dress business casual, be polite, be honest and present your case. If the landlord is negative don't lose your temper and keep a positive attitude. Leave the meeting with something like, "if you change you mind please contact me. Thanks for your time."
Never burn a bridge. Keep trying, because sooner or later you will run into a landlord who needs to get a place rented and cannot afford to be too picky.

[BrokeDavis]

Hello...I am currently in a 13 but converting to a 7. I qualified for an apt without a discharge, but having to pay 1 months rent for security. I was upfront and told them that I was in a bk and I live in Florida.

[Redshirt]

In the future, before filling out an application and paying any fees, you should straight up tell the property manager "I filed for Chapter 7 bankruptcy on (date) and was discharged on (date), is that a problem for your company?" and if the answer is yes then thank you, goodbye. .

I did that. I've only had one property place so no and that it has to have been a year since discharge. The problem isn't the companies it's the owners. Everytime I bring it up to the companies they say "at the end of the day it's down to the owner, so if they have a problem with the bankruptcy there's nothing we can do". The company that had the owner turn us down did say they will transfer our app to any other house we want to try for. Problem is they only manage a few rentals at a time.

Good luck when you start hunting. The tape recorder is a good idea! But I don't think the companies are going to be your problem, it will be the owners they represent, whom you have no access to.

[Redshirt]

Thanks everyone for the replies. It's good to hear others with success stories. It seems I have just run into a string of negatives.

In regards to the companies, I've actually met 3 in person (first experience in previous post) the other one was positive and said he would talk about or case with the owners (century 21) the third, a local company was a late teen/early 20 guy that said "yeah totally. Bankruptcy is nothing. You want to put an application in now the fee is $50." Might be true for their company but he seemed to just be pushing the fee, since it was every other word out his mouth.

I have yet to meet with a private landlord, but the business casual dress is a great tip! Not that I dress like a bum anyway, but I see the point of making the extra effort. In regards to private landlords when should I mention the bankruptcy? Before seeing the house at first contact (via message on by owner sites) or after we have toured the house?

[nioka]

When dealing with a person on is trying to sell the application fee ask if your bankruptcy is going to effect their decision, ask what their minimum credit score is, and any other issue that pertains to you. They should be able to tell you this right up front and if not there could be several issues working, like commissions for signing apps, etc.

IMO, when meeting with private landlords, dress business causal, no cell phone, no kids, and no pets. Make an apointment to see the property and be on time. Ask questions, like what kind of heat, any idea of utiltiey costs, etc., keep it simple and don't get chatty. If you/and your wife like the place tell the LL you like it and want to rent and ask what is the next step. (In many situaitons the LL will have already made his/her mind up and any application thoughts will never arise). If you are asked for an application then you may consider whether or not to mention the bankruptcy. If you do, make sure you point out that you have no bills and can easily afford the rent and cannot file bankruptcy again for 7-8 years. You can also offer an extra month's rent as security or pay first, last, and security deposit, or whatever deal the LL may offer.
The idea here is sales. You would never sell a car if you pointed out all the bad things first. Always start with the positives and never volunteer more information than necessary. Good luck.

BTW, if the meeting goes sour don't get angry. Stay calm and collected. Thank the LL for their time and offer you contact information to them in case they change their mind. Never burn a bridge. You just don't know what the LL is up against. He/she may need to get the place rented soon in order to make a mortgage payment. You could be the only applicant or the better applicant.

[joshuagraham]

You could consider begging ("please, I desperately need a clean place to stay") when told no - who knows, it might make the landlord feel sorry for you and rent it to you after all.

[papie]

The problem with property management companies is that they're just doing the will of the homeowner, and since you never meet them face to face, they just judge you on whatever information they are presented.

nioka have really great advice and it's pretty much exactly what we did. We used a private landlord and basically had to sell ourselves as the perfect tenants who just ran into an unfortunate housing situation.

[Redshirt]

nioka - Thank you so much! I think you've just literally given me the perfect plan handle the situation. I truly appreciate it.