Many landlords conduct credit checks on potential tenants since it gives them an idea of how likely they are to pay their rent on time based on how well they manage paying their other debts.
But if you made some financial mistakes in the past, you may find that it will come back to haunt you when it comes time to find a place to rent. Most derogatory information will remain on your credit report for about six years, which is why you need to manage your credit well, avoid paying your bills late or defaulting on any loans.
If it’s unfortunately already happened, be aware that you may face a tougher time when it comes to finding a place to live and give yourself extra time to find a place to call home.
Before your start your apartment search, the first step is to check your credit report. This way you won’t be surprised by any unexpected issues. This is important since your bank or another service provider may have made a mistake in processing your bills or your identity may have been stolen and you’re left on the hook. If this is the case, get in touch with the financial institution and the credit reporting bureaus to resolve the issue and ensure that a note is made about the problem if it isn’t cleared up right away.
If your credit rating is due to a financial mistake on your own accord, the best thing you can do when applying to move out is to be upfront and honest about the issue. Get your previous landlord as a reference to vouch for you and you might consider attaching a letter or a receipt from your previous landlord or an explanation letter about the situation.
If you’re able to demonstrate good proof of employment, solid income and good references, landlords may not solely base their decision on the results of your credit report.
Landlords are legally allowed to reject potential tenants based on their credit reports and your best bet is not to try and hide your previous mistakes, but rather show recent evidence that you have paid your bills or rent on time.
A landlord may choose to accept you as a tenant, but they may request you to have a guarantor or a co-signer for your rental application. While you will be the person renting the property, your guarantor will be responsible for covering the rent if you miss a payment. Make sure you talk to close friends or family before submitting their name in your application.
Another way to entice a landlord to rent to you is offering them a higher security deposit to assuage their fears, offer to sign a shorter term lease so you’re able to prove yourself first or offer to move in right away.
It may take longer, but you should be able to find a place to rent, though you may not have as many choices. http://rentingtoronto.com/how-to-rent-an-apartment-with-bad-credit/ http://rentingtoronto.com/how-to-rent-an-apartment-with-bad-credit/Don’t be deterred by the situation and continue to monitor your credit report accordingly to prevent any future issues from putting a damper in your renting plans.
Renting Toronto will always conduct credit checks when consider renters for condos for rent in Toronto. Our company has been in the business of placing competent, qualified tenants in owners and landlord’s properties since 1999 and owners have the final say on all prospective tenants.