Unavoidable things happen to good people, leaving them with a credit score that is less than desirable, including divorce, illness, or unemployment. The good news is this doesn’t mean you are doomed for a dark basement apartment you found on a bulletin board with a landlord who can only be reached by pager.
The key is communication. Plan ahead and know your options before you start searching, and you can still find a great apartment in DC.
Be transparent from the beginning so there are no surprises after going through the application process. In the absence of good credit, other items such as landlord references, employment history, and proof of ability to pay are essential. Sometimes landlords will also accept co-signers to make up for bad credit, but make sure your co-signer has good credit and enough income to cover their own expenses along with your rent.
You should also understand your rights as a renter under DC law. You cannot be required to pay more than one month’s rent for a security deposit. If you do have the ability to pre-pay some of your rent, the landlord is required to keep the pre-paid rent in an escrow account, and only distribute the amounts as it becomes due. Renters with poor credit are not directly protected under Fair Housing laws, but landlords should be up-front with their screening requirements, so you know ahead of time whether or not to pursue a particular place.
It is also a good idea to think of the situation through the eyes of the landlord. What would make you feel comfortable? You are entering into a financial contract with this person, and all parties need to be happy. More information is always better.
Lastly, know where to look. Private landlords may be more lenient with renters with questionable credit. Managed apartment buildings may not have as much flexibility with screening requirements. Enlisting an agent is also beneficial as they may know who is willing to work with you and be able to negotiate on your behalf.
If you have less than stellar credit, you should go into the search with the understanding that not everyone will be able to work with you. Be prepared up front, communicate, and make your case, and you can still come away with a great new apartment.
