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Checking credit before renting
Q: We've recently been living at my mother-in-law's home. We are very snug in here and we have a baby to raise. We need to find something cheap in a good area while we get our budget straightened out. Is there anything you can suggest? I don't even know what my credit is like. How can I find out?
Janice
A: Sorry, but there's a one question limit. (Just kidding.) Because you're such a brave soul for living at your mother-in-law's, I'll answer both your questions.
First, I'll give you the easy answer. You can get a copy of your credit report several different ways. (And now, a word from one of our sponsors . . . .) You can order a credit report from Qspace, which you can pay for, view and print online. The report combines the information from the major credit reporting agencies. It's a bargain at $7.95.
In addition, you can get your credit score for an additional $3.95. Increasingly, creditors use your credit score to make decisions about whether to grant you credit and at what interest rate. Your credit score is derived from a complex formula that takes into account your borrowing and payment history. You can read more about your credit score from one of the leading companies that computes them, Fair Isaac. They have a section on their website that should answer your questions about how credit scoring works.
You can also get your credit report directly from the major credit reporting agencies, Equifax, Experian, and Trans Union. Each of them charges $8.50 unless you're entitled to a free report. You're generally entitled to a free report if you've been denied credit based on your report within the last 60 days.
These agencies may not let you view your report immediately online. Instead, they may send it through the mail for better privacy and security. Keep in mind that one company may have information on your report not included in another company's report. So, you may want to order a combined report from Qspace.
Second, to find a less expensive place to live, look in less desirable parts of your town. I'm not saying go live in the slums, just don't try and find a rental in the newest, nicest area either. Look at older apartment buildings that may not have all the amenities of newer ones. Finally, don't be afraid to negotiate. If a prospective landlord takes a liking to your family, he may just give you a little break on the rent if he thinks you'll be good tenants. Be persistent in your search, because there usually are good rental deals in the market. Start your search for a new apartment at RENTNET®.
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Placing a deposit on an occupied unit
Q: I responded to an ad in the newspaper for a townhouse in Maryland. I was advised that the current tenant was going to break their lease and would probably be out by November 1st. I gave the landlord a check for a deposit of $500.00. He has not cashed the check. The previous tenant did not give notice that she was moving out and, as of December 1st, has yet to move out. Her lease doesn't expire until August 2001. I have spoken to the tenant myself, and I can see that she is not putting a whole lot of effort into moving. I am really in love with the place. Do I have any recourse?
Nicole
A: Unfortunately, you don't have much recourse at all. Whether she decides to break her lease is strictly her decision. As long as she's following the lease agreement, the landlord cannot force her to move out. The fact she's indicated she might break the lease is not a sufficient reason for the landlord to evict her.
But, you're probably wondering why you can't sue the landlord who put the ad in the newspaper for a rental that wasn't really available. In contract law, a newspaper advertisement is not a formal contract offer. It's merely an invitation for you to submit a formal offer.
The illustration of an EBay transaction may help explain the parts of a formal contract--the offer and the acceptance. When one party makes an offer and the other accepts, a binding agreement is formed.
On EBay, when somebody places something up for auction, they're making a formal contract offer to sell that item. The offer might be subject to certain terms, such as the minimum price (or reserve price in Ebay lingo) that they're willing to accept. When somebody bids, as long as they meet the terms, they've accepted the offer to sell.
A binding agreement is formed between the parties. That's why, if one party doesn't follow through, they get, horror of horrors, negative EBay feedback.
If I were you, I'd call your bank and stop payment on the check before the landlord tries to cash it. Then, you might ask him to return the check. You might also ask him to contact you when the rental does become available. A small ($25 or $50) deposit might entice him. Remember that whenever you put down a deposit before signing a lease agreement, you should have a deposit agreement, as I discussed in an earlier column. |
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About Phil Rhodes
Phil Rhodes is an experienced commercial credit attorney in Northern California with his own practice, emphasizing bankruptcy, real estate finance, and other consumer and small business credit issues. Phil is also a happy renter, now on his sixth successful landlord-tenant relationship. |
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Disclaimer
Information provided by Phil or Greg should not be construed as real estate or legal advice. State and local laws may vary, so please consult legal counsel in your area with respect to your individual situation.
The RENTNETR and Homestore.comTM family make no representation as to the accuracy or completeness of the statements made herein. Please see our Terms of Use for more information.
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