Renting After Bankruptcy in Arizona

A bankruptcy on your credit report does not always mean that a prospective landlord will refuse to rent an apartment to you, although some who have strict policies about bankruptcy or high debt may use it against you. 

Landlords often consider several factors when deciding who to rent to, including your income, employment history, past rental history, and criminal record.

In this post, we cover how a bankruptcy filing can affect your ability to find a place to rent, what your obligations may be to notify a prospective or existing landlord about a bankruptcy filing, and how to improve your chances of rental approval if you have a bankruptcy on your record.

If you have any questions about bankruptcy in general, or how bankruptcy can affect your ability to find an apartment or house to rent, call us at (480) 739-2448 to speak with one of our bankruptcy law specialists.

How Does a Bankruptcy Affect Your Ability to Rent?

Your credit score and history is a major factor when applying for a residential lease. Your credit score is typically low upon bankruptcy filing. The more recent your bankruptcy, the greater the chance that potential landlords will hold it against you.

The good news is, the more time that passes from when the federal bankruptcy court discharged your bankruptcy to the time when you submit a rental application, the less significance landlords tend to put on that bankruptcy. 

This is especially true if your other factors as a prospective renter, like being employed and having a stable income, can persuade the landlord that you are in a better position with your debts and are financially stable.

What Can You Do to Improve Your Chances with a Landlord?

Most landlords are not reflexive in how they treat a bankruptcy in your past. It is one of the multiple aspects about you that they will consider. There are some things you can do to help improve your odds of getting a favorable landlord’s decision.

You Are Making a Fresh Start, Not Running From Your Past

Important that the landlord sees you as someone who is making a fresh start in life.

Landlords are human beings. 

They can understand how you have faced financial challenges in your past and are less likely to hold that against you if you show them you have learned from your experience and are making a better present and future for yourself.

Accentuate the Positives

Remember that bankruptcy is just one consideration for a landlord when evaluating you as a possible tenant. If you have other aspects to consider that are favorable, then make sure the landlord knows about them:

• If you’ve had a steady income since your bankruptcy, this is a major positive for a landlord who wants to know if you can pay rent payments going forward.
  
• If you have a good history of making rent or mortgage payments in the past and have no late payments, this is another good indicator that you can be relied on to pay rent reliably in the future.
  
• If your past landlords will give you good references about your rental history with them, this is highly valuable “social proof” that your prospective landlord can rely on you to make timely rent payments.
  
• If you currently have good credit, and you have established a pattern of meeting your financial obligations, such as no late or missed payments since the bankruptcy, these are solid signs that you have learned from your past bankruptcy experience and are less likely to repeat it.

Offer Ways to Improve Your Standing With a Landlord

If your prospective landlord still seems undecided about you, you may be able to take steps to bolster confidence in you:

• If you can afford it, you might be able to offer a larger security deposit or pay multiple months of rent in advance.
  
• Consider applying for a place that is owned by a private landlord instead of being managed by a management company. Individual owners may be more willing to look at you as a whole person instead of focusing only on your application paperwork.
  
• If you are still in the early stages of rebuilding your credit, finding a cosigner can help persuade a landlord that you can be trusted.
  
• If your credit score is still in the early stages of rebuilding, you could try responsible credit rebuilding strategies, such as a secured credit card, to help you increase it.
  
• Providing references from people who know you, including employers and past landlords, can also be persuasive social proof about your character.

How Long Does Bankruptcy Stay on Your Credit Report?

A Chapter 7 bankruptcy stays on your credit report for 10 years. A Chapter 13 remains on it for seven years.

The important thing to remember is what we point out above: the more time passes from your bankruptcy, the less likely your landlord is going to rely on it alone and will instead focus more on who you are and how you are doing financially today.

Do You Have Questions About Renting After Bankruptcy?

Having a new bankruptcy on your credit history can make it more challenging to find a place to rent, but as we have shown, you do not have to passively accept those challenges.

The more steps you take to improve your financial situation, such as maintaining steady employment and income, wisely managing the rebuilding of your credit, and having a good history with your previous landlords or your former mortgage lender, the better your chances of finding a place to rent in Arizona.

This is especially true if there has been at least a year since your bankruptcy discharge, but even if you have a recent bankruptcy on your credit history, you can still have a good chance of finding a rental property that is right for you with a little time and patience.

If you have any questions about how a past bankruptcy might be affecting your ability to rent in Arizona, or about how filing bankruptcy might affect your current rental arrangements, then call Stone Rose Law at (480) 739-2448 or use our online contact form. You can reach out to an experienced Arizona bankruptcy attorney and schedule a free consultation if you like.