The “E” word. And in today’s world, the “F” word . . . evictions and foreclosures abound in this economy. In the early 2000s, people bought homes with little or no money down, and we all know what has happened in the past few years.
So whether you’ve been evicted or foreclosed on, your credit is pretty much trashed, and there isn’t a landlord in the city who’ll consider renting to you, right? Wrong.
Along with those who lost their homes due to an ARM they couldn’t afford when it came time to pay the higher rate, there are many legitimate reasons people lose their homes and apartments:
- Personal or family health problems/related hospital bills
- Being laid off or downsized, loss of job
- High, unplanned-for utility bills resulting in budgeting problems
- Loss of second income that helps to pay rent or mortgage
- Loss of extra income, i.e. child support, SSI, etc.
- Stolen money, cars or other prime essential belongings
These are all legitimate reasons for losing a home and many times, people are able to rebound and get back on their feet after a few months. As a landlord, I look at the reason behind an eviction or foreclosure, check out the applicant’s current ability to pay rent, and make a decision based on those things.
Bad applicants tend to have a string of evictions, and always have an excellent excuse to accompany each eviction. I don’t go there.
Here’s the bottom line: if you rent to lower-income individuals, you’re going to have some applicants who have an eviction on their record. And in this economy, evictions and foreclosures are plentiful at every socio-economic level. So if you refuse to look at someone with “a history,” you may be without a tenant for a long time!
Look at the reasons behind the eviction . . . some are understandable, and some will disqualify the applicant. You decide . . . go with the facts, and go with your gut.