Real Estate

As the cost of housing rises so does the number of renters. Buying a home just isn’t as feasible as it once was, especially for the Millennial Generation. However, maintaining a good credit score can also be challenging for many people, and given that many landlords and property rental companies require a credit check before agreeing to lease a unit to a tenant, this presents an unfortunate obstacle for folks who are looking for a new place to rent while establishing or rebuilding their credit scores.

If you fall into this category, then you’re not automatically disqualified from renting. Instead, you’ll just have to look for alternative renting options.

Renting with Poor Credit

It’s not impossible renting with poor credit. Renting a house with poor credit is possible. You can find a rental while establishing or improving your credit score. Here are a few tips renting with poor credit to help get you started.

Demonstrate Sufficient Income & Assets

Poor credit doesn’t always correlate with low income and zero assets. While your credit history might have some poor marks from missed payments, too many new credit lines opened in a short period of time, or coming too close to your credit limit, you could still demonstrate that your income and/or assets outweigh your low credit score.

This might mean you’ll have to put down an extra payment (e.g., first and last month’s rent upfront) or a larger security deposit. But, if you have the funds available, then it could be a useful way to get around the minimum credit score “requirements” set by the property owner.

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According to the 2016 State of the Nation’s Housing Report from the Joint Center for Housing Studies of Harvard University, over 21 million people spend more than 30% of their income on housing. This suggests that millions of renters in the U.S. are cost burdened or “rent poor” because financial experts typically agree that housing should take up no more than 30% of an individual or family’s income.

A report from CNN Money confirmed the financial burden of being “rent poor,” as poor Americans spend approximately 72% of their income on housing, leaving them with little leftover funds to cover utilities, car payments, auto and health insurance, food, and other necessities.

Housing prices are increasing as the economy improves, which correlates with rising rental prices as housing demand outstrips available supply. This means that if you currently spend more than 30% of your income on housing – whether it’s rent or mortgage payments – then finding ways to lower your housing expenses is crucial for stabilizing your financial situation to ward off the negative consequences of rising rents and mortgage interest rates. Saving money on housing also creates new opportunities to save up for a down payment, pay off your loans more quickly, or even save up for a vacation.

What to Do if You’re Rent Poor

If you’re currently “rent poor,” then here are a few ways to cut back on your housing expenses:

Take On a Side Job

Sometimes, the problem isn’t expensive housing as much as it is underpaid jobs. If your present job doesn’t pay you enough to live comfortably in your area, then you might consider taking on a side job to supplement your income. This can be a challenge for anyone who works more than 40+ hours per week, but if you have a flexible or part-time schedule, then consider the following side gigs:

• Drive for Lyft or Uber

• Sell your services on Fiverr

• Launch an online business

• Selling blood plasma

• Pet-sitting and dog walking

Create a Passive Side Income

If you have limited hours available, then instead of a side job, you could develop a passive income stream to make money with minimal maintenance the long run. Creating a passive income requires more work upfront, but over time, this income stream will grow more independently, allowing you to minimize your housing-to-income ratio.

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If you were selling your car you would give it a good clean inside and out as well as fixing a few minor faults in order to get the best possible price, so it makes a lot of sense to take the same approach when selling what is probably your biggest asset of all, your home.

If you are planning on selling your house it would be a good idea to walk around your property and make a list of the sort of jobs that you could tackle yourself, which is a better idea than waiting for someone else to find the sort of fixable faults that help drive the price down. 14-Day Free Trial on Home Real Estate Listing Service. Start Now at ForSaleByOwner.com!

Home Inspection Tips for Sellers

Here is a look at how to prepare your home ready for a home inspection, including some tips on how to be proactive when it comes to repairs, plus what to expect when an inspector calls, and why it often pays to come clean about any problems with the house.

Anticipating Problems

A typical scenario that can play out with a residential property deal is when a clause in the contract allows the buyer to back out of the deal or negotiate a lower price after they get the results of a home inspection carried out by a licensed professional.

If you don’t want the buyer to exercise that clause within about 7-10 days of the contract being ratified, you need to be a proactive seller and prepare your home before the home inspection is booked.

If you want the option of selling your home in its current condition and settled as is, there are options to get a cash offer when you visit WrenRealityInc.com and other sites like it, but if you want to try and maximize the amount you sell your home for, it often pays to anticipate any potential inspection problems and fix the issues beforehand.

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