As a landlord, I learned long ago to look at the *reason* for personal bankruptcy on an individual basis, divorce for example is a common reason why bankrupt but otherwise potentially excellent tenants are looking to rent.
Unfortunately, defaulting on a badly underwater loan often makes good financial sense, and if a applicant is currently employed and current on other obligations, it may even be a plus as other property managers may not be taking a closer look, and rejecting potentially desirable tenants out of hand.
I agree. Some circumstances occur that are beyond a person’s control.
Yes, but (I’m a landlord too, but am new to it) if a prospective tenant is brave enough to start ignoring a big scary bank, what’s to keep him from ignoring me, a brand-new “small and meek” landlord?
I decided someone who just decides one day to NOT PAY THE MORTGAGE will just as easily decide one day to NOT PAY THE RENT.
So I went with someone else, with just as good a job, but safer and with great credit.
But you’re right; these two were *far* better than the next set of tenants that came behind them in my rankings. What a nightmare some people are. Someone actually wanted to move in with 8 dogs!
There are so many folks defaulting that many property managers (probably most) don’t even consider it an issue. I know this because I talk to property managers and I rent out a couple of properties of my own.