Renting an Apartment with a Poor Rental History

Quick answer

• Focus on improving your credit score and demonstrating financial responsibility.
• Gather strong references from previous landlords, employers, or personal contacts.
• Be prepared to offer a larger security deposit or have a co-signer.
• Consider apartments from smaller landlords who may be more flexible.
• Clearly explain any past issues and highlight your current stability.
• Explore guarantor services if you can’t find a co-signer.

Who this is for

• Individuals who have faced eviction, late payments, or other issues with past rentals.
• Renters with limited rental history who are struggling to find a landlord willing to take a chance.
• Anyone looking to move into a new apartment despite a past negative mark on their rental record.

What to check first (before you act)

Goal and timeline

Before you start your apartment search, clearly define what you’re looking for and when you need to move. Are you aiming for a specific neighborhood, a certain size apartment, or a particular move-in date? Knowing your priorities will help you focus your efforts and avoid wasting time on unsuitable properties. A realistic timeline is crucial, especially when facing challenges with your rental history, as the application process might take longer.

Current cash flow

Understand exactly how much money you have coming in and going out each month. This involves tracking all income sources and listing all recurring expenses, such as utilities, loan payments, and groceries. Landlords will want to see that you can comfortably afford the rent, typically looking for income that is a multiple of the monthly rent. Having a clear picture of your finances will also help you determine what you can realistically afford for rent, security deposits, and other moving costs.

Emergency fund or safety buffer

Assess your savings. Do you have enough to cover unexpected expenses like a job loss, medical emergency, or a sudden major repair? A robust emergency fund is a significant indicator of financial stability to landlords. If your fund is lacking, prioritize building it up. Even a small buffer can demonstrate preparedness and reduce the perceived risk for a landlord.

Debt and interest rates

Take stock of any outstanding debts, such as credit cards, student loans, or car loans. Note the amounts owed and the interest rates on each. High levels of debt can impact your debt-to-income ratio, which landlords often consider. Prioritizing high-interest debt repayment can improve your financial standing and free up more cash flow for rent.

Credit impact

Obtain copies of your credit reports from the major credit bureaus (Equifax, Experian, and TransUnion). Review them carefully for any errors or negative marks, especially those related to past rental payments or financial obligations. Your credit score is a primary factor for most landlords. Understanding where you stand allows you to address any inaccuracies or begin a plan to improve your score.

Step-by-step (how to rent with a bad history)

1. Review Your Rental History Report: Obtain your rental history report from services like Experian RentBureau or TransUnion SmartMove.

• What “good” looks like: A report free of major issues like evictions, significant late payments, or property damage claims.
• Common mistake: Not checking your rental history report at all, assuming it’s the same as your credit report.
• How to avoid: Proactively request your rental history report and review it thoroughly for accuracy.

2. Address Any Errors: If you find inaccuracies on your rental history report, dispute them immediately with the reporting agency.

• What “good” looks like: Errors are removed or corrected, presenting a more favorable history.
• Common mistake: Ignoring errors, believing they are minor and won’t affect your application.
• How to avoid: Understand that any negative mark, even if inaccurate, can be a barrier. Dispute all inaccuracies.

3. Improve Your Credit Score: Focus on paying all bills on time, reducing credit card balances, and avoiding new credit inquiries.

• What “good” looks like: A steadily increasing credit score, demonstrating responsible financial behavior.
• Common mistake: Applying for multiple new credit cards or loans during the application process, which can lower your score.
• How to avoid: Maintain a stable credit profile during your apartment search.

4. Gather Strong References: Reach out to previous landlords (if any positive history exists), employers, or even respected community members who can vouch for your character and reliability.

• What “good” looks like: Enthusiastic endorsements that highlight your responsibility, timeliness, and good neighborly conduct.
• Common mistake: Only having references from friends or family who might be biased.
• How to avoid: Seek references from individuals who have a professional or established relationship with you and can speak to your character objectively.

5. Prepare a Letter of Explanation: Write a concise and honest letter explaining the circumstances behind your past rental issues. Focus on what you’ve learned and how you’ve improved.

• What “good” looks like: A sincere and professional explanation that shows self-awareness and a commitment to better habits.
• Common mistake: Making excuses, blaming others, or being overly emotional in the explanation.
• How to avoid: Keep the tone factual, apologetic where appropriate, and forward-looking.

6. Offer a Larger Security Deposit: Be prepared to pay an additional security deposit beyond the standard amount, if allowed by local laws.

• What “good” looks like: A landlord willing to accept a higher deposit as a sign of your commitment and to mitigate their risk.
• Common mistake: Assuming all landlords will accept this, or offering an amount you can’t truly afford.
• How to avoid: Check local regulations regarding maximum security deposit amounts and ensure you can comfortably afford the increased payment.

7. Find a Co-signer or Guarantor: If possible, ask a trusted friend or family member with good credit and stable income to co-sign your lease.

• What “good” looks like: A co-signer who is approved by the landlord, adding a layer of financial security.
• Common mistake: Asking someone without a strong financial profile, or asking someone without fully explaining the risks involved for them.
• How to avoid: Ensure your co-signer understands they are legally responsible for the rent if you default.

8. Explore Guarantor Services: If you can’t find a personal co-signer, investigate third-party guarantor services that can co-sign for you for a fee.

• What “good” looks like: Accessing a service that the landlord trusts and that allows your application to proceed.
• Common mistake: Not researching the fees and terms of these services, or choosing an unreliable provider.
• How to avoid: Compare different guarantor services, understand their requirements, and factor their fees into your budget.

9. Target Smaller Landlords: Sometimes, individual landlords or smaller property management companies are more willing to consider applicants on a case-by-case basis than large corporations.

• What “good” looks like: Finding a landlord who is willing to have a personal conversation and assess your situation beyond just a credit score.
• Common mistake: Only applying to large apartment complexes with rigid screening processes.
• How to avoid: Look for “For Rent” signs on smaller buildings or duplexes, or search local classifieds.

10. Be Upfront and Honest: During the application process, be transparent about your past rental challenges and highlight your current stability and commitment.

• What “good” looks like: Building trust with the landlord through open communication.
• Common mistake: Trying to hide past issues, which can lead to immediate rejection if discovered.
• How to avoid: Frame the conversation around solutions and your readiness for a responsible tenancy.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking your rental history report	You might be unaware of negative information that will automatically disqualify you, or you might miss errors that could be corrected.	Proactively request and review your rental history report from services like Experian RentBureau or TransUnion SmartMove.
Ignoring errors on your rental history report	Inaccurate negative marks can lead to rejections, and if unaddressed, they can persist and harm future rental applications.	Dispute any inaccuracies immediately with the reporting agency, providing supporting documentation.
Applying for new credit during the search	Taking on new debt or opening new credit accounts can lower your credit score, making it harder to qualify for an apartment.	Maintain a stable credit profile; avoid new credit applications until after you’ve secured housing.
Providing only biased references	Landlords often discount references from friends or family, as they may not offer an objective assessment of your character or reliability.	Seek references from employers, former (positive) landlords, or professionals who can speak to your responsibility.
Making excuses for past issues	This can make you appear unreliable and unwilling to take responsibility for your actions, which is a red flag for landlords.	Offer a sincere, brief explanation focusing on lessons learned and current improvements, rather than blaming others.
Not budgeting for a larger security deposit	You might be approved for an apartment but then be unable to afford the upfront costs, leading to a missed opportunity.	Research local laws on security deposit limits and confirm you have the funds available before applying for properties that might require more than the standard deposit.
Not having a co-signer or guarantor	Without additional financial backing, landlords may see you as too high a risk, especially with a history of issues.	Secure a willing co-signer with strong credit or explore reputable third-party guarantor services.
Only applying to large apartment complexes	These often have strict, automated screening processes that may not allow for individual consideration of your situation.	Target smaller landlords or independent property managers who may be more open to discussing your circumstances and offering a chance.
Trying to hide past rental problems	Landlords typically run background checks that will reveal any negative rental history, leading to immediate rejection and loss of trust.	Be upfront about past issues and focus your communication on your current stability and commitment to being a good tenant.
Underestimating the total upfront costs	Beyond rent and security deposit, there are application fees, moving costs, and potential pet deposits, which can quickly add up.	Create a detailed budget for all potential moving and rental-related expenses before you start your search.

Decision rules (simple if/then)

• If your credit score is below 620, then you will likely need a co-signer or a larger security deposit because landlords use credit scores to assess risk.
• If you have an eviction on your record, then you should prepare a detailed explanation and focus on landlords who are more flexible, because evictions are a significant red flag.
• If you have a history of late rent payments, then you must demonstrate consistent on-time payments for the last 12-24 months to prove reliability.
• If you are applying for an apartment in a competitive market, then you need to have all your documentation (references, proof of income, explanation letter) in order before applying to stand out.
• If you can afford to offer three months’ rent as a security deposit (where legally permitted), then this can significantly mitigate a landlord’s risk and make them more willing to rent to you.
• If your current income is less than 3 times the monthly rent, then you will likely need a co-signer or a guarantor to show you can meet your financial obligations.
• If you have significant debt, then paying down high-interest debt before applying can improve your debt-to-income ratio and demonstrate financial responsibility.
• If you are applying for a pet-friendly apartment, then be prepared to offer an additional pet deposit or monthly pet rent, as this is standard practice.
• If you have a strong employment history with a stable job, then highlight this in your application and ask your employer for a letter of reference.
• If you are targeting luxury apartments, then expect stricter screening processes and be prepared to present a flawless application, as these properties often have higher applicant-to-unit ratios.
• If you are moving from out of state, then consider visiting in person to view properties and meet landlords, as this can build rapport and trust.
• If you have a history of property damage, then you must be able to demonstrate how you’ve addressed this issue and are now committed to maintaining the property.

FAQ

Q: What is considered a “bad rental history”?

A: Generally, it includes evictions, frequent late rent payments, significant property damage, or lease violations reported by previous landlords.

Q: How long does a bad rental history stay on my record?

A: Unlike credit reports, there isn’t a set time limit for rental history reports. Information is typically kept by reporting agencies for several years, but landlords may have their own record-keeping practices.

Q: Can I get an apartment with an eviction on my record?

A: It’s challenging but possible. You’ll need to find a landlord willing to consider your situation, provide a strong explanation, and potentially offer a co-signer or larger deposit.

Q: What should I do if a landlord rejects me because of my rental history?

A: Don’t get discouraged. Ask for specific reasons if possible, and use that feedback to improve your approach for the next application. Focus on addressing the landlord’s concerns.

Q: How much more can a landlord charge for a security deposit?

A: This varies significantly by state and local laws. Some areas have strict limits on how much a landlord can charge for a security deposit. Always check your local regulations.

Q: Is it better to rent from a large property management company or a private landlord?

A: For those with a poor rental history, smaller, private landlords are often more flexible and willing to consider individual circumstances than large companies with rigid screening software.

Q: Can I get an apartment if I have no prior rental history?

A: Yes, it’s common. You’ll need to provide proof of income, strong references (like employers), and potentially a co-signer to demonstrate your ability to pay rent and be responsible.

What this page does NOT cover (and where to go next)

• Negotiating lease terms: This guide focuses on getting approved. Once approved, you may want to understand your rights and responsibilities regarding lease clauses.
• Tenant rights and responsibilities: Familiarize yourself with landlord-tenant laws in your specific state and city to ensure fair treatment and understand your obligations.
• Building a positive rental record: Once you secure an apartment, maintaining a good tenancy is key for future rentals. Focus on consistent rent payments and property care.
• Understanding different types of leases: Learn about fixed-term leases, month-to-month agreements, and their implications.