Renting With Bad Credit

Demand for rental units dropped over the past couple of years in the depressed economy. Some renters moved in with family, leased a spare room, or went back to living with roommates. Meanwhile, the housing supply surged as the condo market was overdeveloped -- and many properties sit on the market unsold. This leaves an excess of available apartments and fewer renters.

With vacancy rates hitting a near 30-year high, renters have the upper hand and landlords have been willing to negotiate on lease terms, price and, in some cases, parking and utility bills. During the recession, landlords wanting to fill unoccupied apartments eased their standards on renters with bad credit, say real estate experts.

As the economy rebounds, though, the renter's market is also expected to change. "As the market turns around, those guidelines will probably tighten up and the flexibility will be less," says Maurice Ortiz, a marketing director with the Chicago-based apartment search firm, Apartment People.

But whether landlords' standards get more lenient or more strict, renters tarnished by bad credit have a tougher time leasing -- in any economy. Credit scores, along with gross income and employment history, are the top three factors that landlords use to evaluate those interested in renting their property.