Can I Rent an Apartment if I Have Debt in Collection?
Renting an apartment with debt in collection is challenging but achievable. Use strategies like finding a guarantor, offering higher security deposits, targeting individual landlords, or settling your debts to improve your chances of securing an apartment.
Respond to CollectorsHaving debt is part of life. But when accounts go delinquent, renting an apartment gets complicated.
Convincing a landlord you’ll pay rent on time is tough when you’re behind on debts. You can still rent an apartment, even with debt in collection.
Being Sued by Debt Collectors While Apartment Hunting?
Don't let a lawsuit ruin your chances of renting. Respond to the debt collector's summons and negotiate a settlement before your court date.
Answer the LawsuitYou have several options to secure an apartment:
- Find a guarantor
- Offer a higher security deposit
- Get recommendation letters
- Consider mom-and-pop landlords
- Increase your income
Individual landlords renting their own property often have more flexibility than property management companies.
Check Your Credit Score First
Debt tanks your credit score. Landlords will check it before accepting you as a tenant.
The Fair Credit Reporting Act requires landlords to get your permission first. Beat them to it by checking your score yourself.
Review your credit reports from all three bureaus: Experian, Equifax, and TransUnion. Look for errors that could be dragging down your score.
Found debts you don’t recognize? Dispute them with the credit bureau. You can also request debt validation from collectors to confirm legitimate debts.
If you’re facing a debt lawsuit, our partner Solo can help you respond and negotiate with collectors.
Find a Guarantor
Boost your chances by finding someone to vouch for your financial responsibility. A relative, friend, or employer can co-sign the rental agreement.
The guarantor should have solid finances without debts in collection. Landlords trust you more when someone reliable backs you.
Your guarantor takes on serious responsibility. The landlord can pursue them if you fail to pay rent. Their credit rating could suffer if you default.
Only ask someone to guarantee if you’re confident you can handle the rent.
Offer a Higher Security Deposit
Most landlords require one month’s rent as security deposit. When you have debt, offer more than the minimum.
Pay up to three months’ rent equivalent upfront. Landlords see this as proof of your reliability and commitment.
An eviction stays on your record for seven years. Use this option if your rental history is clean.
Get Recommendation Letters
Being behind on debt doesn’t make you a bad tenant. Prove your reliability with recommendation letters from previous landlords.
These letters show you’ve always prioritized rent obligations despite financial challenges. Your current employer can help too.
Have your employer write a letter confirming your employment is secure. Landlords worry less when they know you have stable income.
Target Mom-and-Pop Landlords
Individual property owners operate differently from corporate management companies. You can connect with them on a personal level.
Explain your situation in person or through a letter. Share why you fell behind on debts.
Job loss, divorce, or serious illness are legitimate reasons. Individual landlords often empathize with your circumstances and show more flexibility.
Boost Your Income
Increasing your income helps you catch up on debt and proves you can afford rent.
Ways to increase income include:
- Getting a second job
- Monetizing your hobby
- Selling assets you don’t need
Consider cheaper apartments to save money. If your income is three times the rent, you’ll stay on track financially.
Validate Your Debts
Before paying any debt, confirm it’s legitimate. Collectors sometimes pursue incorrect amounts, time-barred debts, or fraudulent claims.
Send a debt validation letter to confirm what you actually owe. Many collectors give up after receiving one.
If you’re being sued, our partner Solo helps you respond to the lawsuit and fight back against aggressive collectors.
Consider Debt Settlement
The surest way to stop debt collectors is paying what you owe. You can usually settle for less than the full amount.
In debt settlement, you offer a portion of the total due. Most creditors accept at least 60% of the debt’s value.
In exchange for a lump-sum payment, the creditor drops legal claims and releases the remaining balance.
Get any settlement agreement in writing before paying. Make sure you settle before your court date if you’re being sued.
Professional settlement services guide you through negotiations with collectors. They help you reach agreements that work for your budget.
Take Action on Your Debt
Renting with debt in collection is challenging but possible. Choose the strategy that fits your situation best.
Whether you negotiate with your landlord, find a guarantor, or settle your debts, you have options. Don’t let debt collectors intimidate you into paying debts you don’t owe.
Verify every debt before paying. Stand up to collectors who violate your rights.