Dena Standley | October 19, 2022
Summary: If you're being sued for debt, you can still find ways to rent an apartment. SoloSuit can help you fight off debt collectors and get back to your life.
Having some debt is almost inevitable; it's part of life. However, when you're dealing with a delinquent account, things can get a little bit complicated.
It's challenging to convince a prospective landlord that you'll be a reliable tenant when you're already behind in existing debts. All hope is not lost, though.
Even when dealing with debt collectors, you can still rent an apartment. Try the following suggestions to find a property manager willing to rent to you, even if you have less than stellar credit:
Landlords, who are independent individuals renting out their own property, often have more flexibility than property management companies.
Debt can significantly affect your credit score and, as a result, your reputation as a tenant. Most landlords will want to check your credit score before accepting you as a tenant. They're required by the Fair Credit Reporting Act (FCRA) to get your permission before accessing your credit information.
Why not beat them to it? If you suspect that you may have a low credit score, it's best to find out before going apartment hunting. You'll need to check with the three major bureaus (Experian, Equifax, and TransUnion) to ensure that none of them has any errors. Get your free annual report here.
If you encounter any debts you don't recognize, double-check them first to ensure that these are legitimate debts that belong to you. If you suspect these debts were put on your report in error, you can dispute them with the credit reporting agency. You can also use Solosuit's Debt Validation Letter to confirm any debts you don't recognize.
You can boost your chances of finding an apartment to lease by finding someone who can vouch for your financial responsibility. This person could be a relative, a friend, or an employer who trusts you enough to co-sign the rental agreement.
The guarantor is usually someone whose finances are in order, without any debts in collection. It's easier for the landlord to trust you when you're backed up by someone reliable.
Remember that the landlord has the right to go after your guarantor should you fail to honor your agreement. It is a serious responsibility and can lead to your guarantor having to pay your debt or sacrifice their own credit rating if you fail to pay your rent. That can damage a personal relationship, so make sure you are economically stable enough to handle the rent before asking someone to take this step.
Most landlords require you to pay the equivalent of one month's rent as a security deposit.However, if you're in debt, it's preferable to offer more than the minimum security deposit. Offer to pay up to 3 or more months rent equivalent. The landlord may be convinced of your reliability when you pay so much upfront.
Remember that a previous eviction stays in your records for seven years. It's best to use this option if you're sure your past is clean.
Just because you're behind in debt repayment doesn't mean you are a bad tenant.
You may prove your reliability by obtaining recommendation letters from previous landlords. These letters explain to the prospective landlord that you've always prioritized your rent obligations no matter your financial situation.
Your current employer can also be of help. Have them write a letter to the landlord confirming that your current employment is secure. If the landlord knows you won't be running into financial difficulties soon, they may consider your application.
Hard times can hit anytime, but as long as you prove you're reliable, you can still rent an apartment with debt in collection.
Mom-and-pop landlords are individual apartment owners. They aren't part of major corporations, making it easier to connect on a personal level.
Even if they find out you're in debt, you can explain your situation to them in person. You may choose to write a letter explaining how you got yourself into debt arrears.
Loss of employment, divorce, extensive illness, and the like may be the reason you fell behind. Individual landlords are more likely to empathize with your situation.
You can quickly get back on track with debt repayment if you increase your income.Prove to the prospective landlord that your income has increased and you can afford rent with no issues.
Some ways to increase your income include:
You can also save funds by going for cheaper apartments. If your income is three or more times the equivalent of the rent, you're likely to stay on track with your financial obligations.
Granted, renting an apartment if you have debt in collection can be daunting. However, it's not impossible. Find the option that works for you and go for it. Be sure to validate every debt with SoloSuit's Debt Validation Letter before paying it off. For all you know, you could be paying off the incorrect amount, a debt past the statute of limitations, or a fraudulent debt. Stand up to debt collectors by sending them a Debt Validation Letter (most collectors give up after receiving one).
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.