Does being bankrupt in the past effect chance to rent a property?

thoughtitwassorted

I was bankrupt year 2006. Does anybody here know if this has any effect on me getting a rented accommodation. I have seen on one of letting agency's form that they are going to do a credit check. Would they be denying to rent for people who have been bankrupt? I am in a permanent work at the moment and I would think (...or hope...) my employer would give me references. Thank you.

lil_me

The agent who we went through would reject those who had a bad credit record in any way, they told me one default would usually cause them to decline. Some do credit check, some don't.

robpw2

I thinks that credit checking for renting is wrong, How else are you supposed to get a house if you have bad credit and dont fit the councils "ideals"

thoughtitwassorted

Been today to see a nice house. I was told that I would need to pay £88 when handing the application forms in and as far as I understood this money is not refundable in a case of being rejected as a tenant.... Letting agent said that they will perform a credit check and check the employer references. Or that they will give this for some other company to do. And then when I mentioned that I was bankrupt two years back they said that they would explain this to the landlord and that it would be landlord's decision then whether to accept me or not. And with my luck --- bye bye nice house....

blue_monkey_2

We have had this very same problem, not bankrupt but have defaults. I as honest with the Estate Agents/Letting Agents and they all told me no, they would not give us anywhere so itwas not even worth us having a look. The other option is to look for a house that is let privately via the newspaper or shop window or put 6 months rent on the table and ask if anyone will have you. It is hard, expecially when you see a nice house.

Do you have children? Is it just you that needs housing?

mumblesminx

I have read this thread with real interest. As a Landlord I have just taken on a tenant who had been previously declared bankrupt. As the bankcruptcy has now been discharged and the tenant is in full time employment (with good references) I see no problem letting the property although for my security I would ask for at least two of the following three covenants
1. Six months rent in advance.
2. Four months rent deposit (held in the new government deposit scheme)
3. A guarantor who will pay the rent if the tenant becomes unable.
Ultimately it will always be the Landlords personal decision however I would hope that any letting agent I used would pass on the details of such prospective tenants rather than make that decision on my behalf. Finally, I would add that although it may not be the experience of those who have posted above it is always best to be honest about your situation from the start rather than for it to be disclosed later at a credit check. I hope you find a nice home soon.

dobbinhorse

Hello everyone. I'm a month into my bankruptcy and have had to rent a house as mine will be surrendered back to the mortgage lender.

When enquiring to lettings agents I have always started the conversation with, "You have some properties I'm interested in but I currently bankrupt - is that a problem for you?"

I've had varied replies including some who have said I’d need a guarantor, others have said six months rent in advance. These are to be avoided in my eyes. Personally, after being a renter in the past, I'd never give a landlord or letting agent six months rent up front!

I did find that many lettings agents are happy to liaise with the landlord, sometimes you have to explain that since you have become bankrupt you are actually in a much better financial situation than non-bankrupts with credit agreements. I also found that my application fee was less because the credit search is taken out of the application process as it would be a waste of time.

At the end of the day, thanks to the buy-to-let boom, and now the coming credit crunch, there are many landlords and lettings agents eager to find tenants for their properties. Consequently, they cannot be too choosy which is good new for us, and them.

When I found the property that I’m about to start renting I only had to pay one month’s deposit, and one month’s rent up-front. Both the lettings agent and landlord have been helpful, but at no point was there any indication that being bankrupt at present is an issue for either of them. What will happen once I am discharged may be an issue when dealing with lettings agents, but there are plenty of private landlords advertising in the local newspapers who will not require a credit check.

That’s my tale. I hope it offers reassurance to those of you who may be concerned. I wish you all the best with your new futures.

D

thoughtitwassorted

Got phone call today from the letting agents and yep -- got denied. Landlord had said thanks but no thanks. :-(

sassybabee33

This is the problem we have at the moment. Need to move to the next town.We were both discharged from bankruptcy in 2005,have been in current rented hose for 4 years,no arrears ,always paid on time,dh in full employment good wage,and still get turned down.
One letting agent ignored my emails when i put down i was discharged,(know this as i re emailed and got an instant response!), another just said no sorry, the third said if the credit check comes back a no no, would have to either find 6 months up front, or find a guarantor.

So frustrated! Can give excellant references but they are not interested at all.

abaxas

Stupid question...or maybe not?


Howcome a LL requires references/bonds etc to secure the property while the tenant doesnt?

Surely in the current economic enviroment, a tenant requires security too?

subjecttocontract

I've been letting property for nearly 10 years......at least 100 tenants.

Never once has a tenant required references from me. Nobody ever asked for the contact details of previous tenants or bank references.

I've often wondered why when there are so many crap landlords around.