Many people prepare for months or even years before seeking approval for their first apartment. They may go to great lengths to ensure that their credit history is spotless and their income more than meets the criteria for the space of their dreams.
Nevertheless, not everyone seeking a new apartment has great credit. Unforeseen circumstances can introduce financial pressures that result in late payments, broken leases, unresolved rental balances, and even evictions. If you have run into financial problems in the past but still want to lease an apartment, a second-chance rental may be your best option.
Here is a bit of information about second-chance apartments and what you can expect from them.
What Is a Second-Chance Apartment?
A second-chance rental offers people with prior credit or rental problems a second chance at independent living. These units are offered to people with previous issues that have made them ineligible for most standard apartments. Many apartments do not lease to people who were previously evicted, owe back rent, or have poor credit. Second-chance units offer residential options for people who may otherwise be homeless.
Do Second-Chance Rentals Require Credit Checks?
Second-chance rentals may still require a credit and background check. However, their requirements are much more lenient than those of standard apartments.
It is important for prospective tenants to disclose any prior issues. Although the details of the problems in your background may not prohibit your acceptance, presenting false information on the documents submitted for a second-chance rental may. Landlords still value your truthfulness and often see it as a sign of trustworthiness.
Are Second-Chance Apartments Cheaper?
A second-chance unit may or may not be cheaper than similar standard apartments. Some second-chance rentals require a higher down payment due to the lack of creditworthiness requirements. The increase in the advance helps prove that you are financially capable of paying the rent.
Do Second-Chance Rentals Require References?
In some cases, second-chance apartment landlords do require references. The references can help provide a positive snapshot of your character and financial means, which your credit report may not offer.
Is a Cosigner Helpful When Seeking a Second-Chance Rental?
Having a family member or close friend cosign your lease may increase your eligibility for the rental because the landlord knows that there's another person who is responsible for the rental costs.
If you are interested in a second-chance apartment, schedule a consultation with a real estate agent in your local area.
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