Many landlords and property managers have specific credit requirements before renting a space to a tenant. The credit score is often used to determine if a tenant is a good candidate for the space. Some real estate experts agree that a score of 625 or higher is acceptable in most cases depending if tenant concessions are involved. What if your credit score is less than acceptable? It does not mean that a deal can’t be made. It is important to work with a commercial broker who has experience in the negotiation process to ensure the tenant has the best chance of sealing the deal. Below are seven strategies that can help overcome poor credit to the landlord:
- Explain your financial situation to the landlord – It is better to lay everything out in the beginning because at some point during negotiations it will come out. Be willing to work with the Landlord.
- Offer a double security deposit.
- Get a co-signor with strong credit – There are even co-signing companies that will co-sign for a small fee.
- Pay a little more than the asking rent with little or no tenant improvements or other concessions.
- Get a letter of credit from your bank.
- Request a payment history from a utility company to show that you have been making timely payments.
- Be proactive in trying to improve your credit score by paying credit cards and bills on time. There are companies that can help clean up your credit report.
If tenants are willing to work with the Landlord and show they will be responsible tenants, there is a greater chance of working out a good deal.