UK Landlord Forum / Life

Hi,

Currently contemplating letting my first newly refurbished 4 bed house to a lady, who seemed a good match for my expectations etc.

Lives alone but needs a big house for older children returning home with grandkids for weekends.

After meeting her and going through the form I created about references and credit checks etc. everything seemed fine, has good references from previous landlord and employers etc.

But she would fail a credit check due to a £5500 debt in her credit file which she says her ex husband created before him leaving her and divorcing.

Are credit checks an absolute be all and end all, as I would expect a lot of people to be in situations like this?

How important are they in your search for a tenant?

She is in a permanent job which she can prove etc.
She has the deposit.
Additional personal references
Prove ID etc.
And she claims to look after my house to her somewhat high standards.

After meeting her I was instantly willing to let the house to her, its just this credit referencing thing is bothering me now.

Thanks, Joe

Quote from: jmarsh20 on September 16, 2015, 10:05:34 AMAre credit checks an absolute be all and end all, as I would expect a lot of people to be in situations like this?

No. I have let properties (twice now) to people without perfect, or even no, credit history. Those without a perfect credit history you make a judgement call on. If someone has no credit history at all - like overseas students - then you can ask for the rent up front... 6 months, even a year. There's a balance to be struck. If you want to play it safe and it is your first let and your property is desirable, then you can elect to wait for that perfect Tenant to turn up and take no risks whatsoever... you can only deal in facts and the facts here are that this prospective Tenant is said to owe someone £5,500... while there is an interesting story, or justification, behind it... all you actually have are the facts... the fact does not appear to be that the prospective Tenant's ex-husband is said to owe someone £5,500?

Its actually a debt relief order on her credit file for £5500.

In all other respect I think she is the better fit for me out of all the other people I have met during viewings.

Main reasons are that she lives alone and only has family beck for weekends etc. the wear and tear on the property should be minimal... hopefully!!!

So, no money actually owed to anyone, then? DRO is a means of "copping-out" of a debt, right? Debts are run up, can't be paid and they're effectively quashed / written-off by the DRO... nice.

She has a good job and savings put aside. Ask her to pay some rent up-front (possibly for the duration of the fixed term you'll offer) if you're really nervous. If not, then don't... go with your gut... better than a piece of paper spat out by a computer.

Have you credit checked her yet?  It's obviously an indicator.  I get tenants (the ones I like and think there is a possibility) to join up to http://www.noddle.co.uk/ for 100% free.  I then ask them for the log in details (it's a 100% read only site, no changes can be made by me)  (which is alot easier than trying to get the report off the site) and have a look.

One girl the most recent time told me she had 'a' catalogue from years ago which would cause the paid for credit check to crash.  She sent me her login and her credit file was like a financial car crash with all sorts of recent defaults on them stretching back really quite far.  I did not want to be at the end of that creditor list thanks very much.

When you take the deposit, do the insured scheme.  That way you get to be castodian of the money and if she decides not to pay the rent and you can't cover it, at least you can use that money to pay the mortgage.

Riptide - disappointed in you - you edited that entry and still couldn't get "custodian" correct. We have standards on this forum. Well, some of us do... sometimes, maybe.

Riptide,

Could you explain further on the insured scheme for the deposit. I'm not sure what this means or how it helps??

Thanks, Joe

Marsh, you know you have to put the deposit into a scheme within 30 days when you get it don't you?

There are 2 schemes, custodial and insured.  First you hand the money over to them and they keep hold of it.  2nd you keep the money and insure it and keep it safe until it's time to give it back (or not)

In my defence the laptop usually helps with my spelling, I'd in stalled a new browser and it was using English (American't) whatever that is.

Yes I understand you have to secure the deposit in a scheme, I had just never looked into to see what you actually did. I have now and understand it better.

But with both the custodial and insured scheme I guess you have to have valid reason for with holding the deposit to pay for damage etc.

What are reasonable grounds to withhold it?

You'll know it when you see it, until then dont fret.

To take the hassle fully out of getting credit checks done you can get this agent to do all the referencing and checks for you.  They even check the electronic footprint of potential tenants.  I found a tenant who had pretty good credit history but this did not show up a dissolved business that the electronic footprint check showed.  I use this service from now on, it's only £20. 

http://www.mypatchlettings.co.uk/advanced-credit-check

I am unclear about the issue of the ex-husband being actually responsible for the debt.Is he supposed to have forged her signature to obtain money/goods? How has it ended up on her record?
Sorry to be cynical,but you say you were instantly willing to let the house to her, upon clapping eyes on her -oh dear.The need for the extra rooms,for someone who can't afford to buy a house? Unless the adult kids are chipping in,the rent must be stretching her resources? Is she thinking of subletting ? I would be looking for someone who does not start off with this question mark hanging over them.