Understanding the Concept of Second Chance Apartments
Not everyone is familiar with the concept of second chance apartments. These types of apartments are offered to people who have experienced some financial setback that would prevent them from renting units elsewhere. Sometimes known as high risk apartments, these types of living arrangements can serve as a stepping stone toward repairing a damaged credit rating.
Second chance apartments may be right for people who have been through some sort of financial hardship and ended up facing eviction or defaulting on debts due to financial reversals. For example, a tenant who lost his or her job and could no longer afford an apartment may end up being evicted. At the same time, credit card and other debts were left unpaid, resulting in defaults. While the individual has since found another job and is making headway in repaying those old debts, the damage to the credit rating has already been done.
Some landlords will look closely at the circumstances surrounding those unfortunate events and be willing to take a chance on the applicant. In order to offset some of the risk involved, the landlord may require a higher deposit, and maybe even at least one month of rent held in reserve.
In return, the tenant has the chance to live in a comfortable apartment, and will also build good credit with the landlord by making the rent payments on time every month. The landlord in turn submits positive comments to the major credit reporting agencies, effectively aiding the tenant in rebuilding his or her credit over time. When all goes well, that tenant will be in much better financial condition in two or three years, and be in a position to ask for more favorable rental terms and conditions.