How to Rent an Apartment With Bad Credit, According to Landlords

So your credit’s shot due to some past troubles with bill-paying or credit card debt. Does this mean you’ll never be able to rent an apartment again? Not necessarily.

“We are oftentimes at a crossroads when it comes to dealing with prospective tenants with bad credit,” says Robert Rahmanian, co-founder of REAL NY, a Manhattan real estate brokerage company. “Oftentimes, the client is well-qualified outside of the credit score and most of our renters are on the younger side, so student debt comes into play.”

Rahmanian, who is also a landlord, says he prefers a tenant with a credit score above 600, but he says he always takes a close look at an applicant’s full credit report.

“Once we’ve done that, we’ll get on a call with the prospective tenant to understand the problems on a deeper level,” says Rahmanian.

If you think your options are limited due to your credit score, the fact that landlords may be willing to work with you may be good news. But what does that look like, exactly? Here, six routes they’ll commonly recommend in the face of a less than ideal credit score:

“Start by knowing specifically what’s on your credit report and making sure it is accurate,” says Justin Pogue, author of Rental Secrets and a residential property manager in San Jose, California. “Removing inaccuracies will help increase your credit score. Second, contact those companies that have reported negative entries on your credit report. More often than not, they are willing to settle for an amount far below what you originally owed. If you reach settlements or create payment plans, get them in writing, as proof you are working on improving your credit and not just ignoring it.”

While most people see the security deposit just as a way to cover damage, the landlord can also use it to cover any money owed under the lease that a renter doesn’t pay.

“Offering a larger than normal security deposit essentially provides the landlord more assurance that they will be paid for the entire term of the lease,” says Pogue.

“By paying a few months’ rent up front, your landlord’s risk will be reduced and this will help allay the concerns over your credit score,” says Janis Benstock, a property manager and real estate broker at Settle Down Philadelphia.

This may be bothersome, but asking a family member (remember to pick someone with good credit) to co-sign your lease or act as a guarantor can help if you have bad credit—and no, this doesn’t mean they have to live with you.

“A co-signer is someone who is willing to pay the cost of the apartment in the event that the renter with poor credit doesn’t pay,” Pogue says. “This reduces the risk because multiple people are now responsible for paying the rent.”

Benstock says that for tenants that haven’t had time to establish credit, alternate measures can be used: “You can get copies of utility or cell phone bills in their name to show a history of making payments. This is common when people are just starting out on their own and haven’t yet developed a credit history.”

When all else fails, consider using companies like Insurent or TheGuarantors to secure a lease.

“This can cost the tenant up to an extra month of rent but may be a good option,” Rahmanian says.