Are you navigating the complexities of being under debt review while trying to rent a property? This comprehensive guide delves into the intricacies of this situation, offering insights and solutions.
Does Being Under Debt Review Hinder Your Ability to Rent?
The short answer is no. Undergoing debt review doesn't preclude you from renting. There is no law that says that when you are under debt review you do not qualify to rent a property. The decision to rent out a property is squarely at the discretion of the rental agent or landlord.
It's crucial to understand that rental or real estate agents conduct background checks, including credit reports, to assess your creditworthiness. They evaluate whether you have arrears, judgments, or are under debt review. However, no law restricts individuals under debt review from renting properties. Denial of rental due to debt review status alone is not legally justified.
Agents typically request a letter from your debt counselor confirming your debt review status and your ability to afford the rent. We at Debt Sage incorporate rent into your household budget and can providing letters to agents confirming your payment capacity.
Occasionally, agents may request a payment distribution statement to understand your financial commitments. While this is less common, it highlights the importance of maintaining up-to-date payments under debt review.
If you're already renting while under debt review, it shouldn't impact your situation, as rental costs are factored into your budget.
How to Deal With Denials
Facing rental property denial? Consider these strategies:
- Large Security Deposit: A substantial deposit might persuade landlords, though it could be challenging to arrange under debt review.
- Guarantor Support: A family member with a strong credit record could act as a guarantor, stepping in to cover rent if needed.
How Debt Sage can Help
If you choose Debt Sage and consistently meet your repayment obligations, we'll support you with the necessary documentation and letters confirming your payment history to rental agents or landlords. Our role as NCR-registered debt counsellors is to provide a trustworthy reference during your property rental search. When an agent requests such documents, reach out to us for prompt assistance, paving the way for your next rental home.