Should I rent to someone going through Bankruptcy?

Question

I have a condo that just came available and a guy who needs to move out of his home that is being foreclosed on.

If I rent to him now, will he be covered under the bankruptcy if he filed 2 months ago?

or can I go evict him if he doesn't pay?

Answer 1

Every State has different laws about eviction...Check it out in you state....I know in IN.you can evict some rather easy ....no other reason than you want your property back..takes 30 days..And IL. it's a lot harder must have a reason and takes 180 days....I don't think he could add you to the BK

Answer 2

I wouldn't rent to him and I'll tell you why.

People that are RESPONSIBLE pay for a place to sleep before they pay another bill.  Being homeless is something that should scare someone to death.

The only exception that I would consider, is if the rental rate was about 1/2 of what he was paying in a mortgage.  I would also charge DOUBLE the normal deposit.

If your rental rate is anywhere close to what his mortgage payment was (and you tell this by his credit report), if he didn't pay them, he's not going to pay you.

Answer 3

IF he did not pay his bills and is filing bankruptcy ; what makes you think that he will pay you ?

Don't get yourself in trouble like that and end up paying more in legal fees to get him out than he ends up paying in rent IF he even pays ....

Answer 4

No. Do not rent to him unless the bankruptcy has been discharged.

Answer 5

If you feel comfortable renting to someone with bad credit then go ahead and rent to him. He will not be able to add you to his bankruptcy and avoid paying rent. I would suggest that if you really want to rent to him get 2-3 months rent up front and a full month's security deposit. Everyone needs to live somewhere so this is a hard decision. If you do not know him personally then do not let your heart guide you on this one.