UK Landlord Forum / Life

Hi Everyone 

I'm curious how many Landlords request visibility of financial documents (Bank Statements & Payslips)? 

Visibility of these allows me to do a preliminary health check prior to submitting for formal 'Tenant Referencing'.  All the more important after Tenant Fees Act.

Just curious how many other Landlords do this? Or do you base it on instinct, having met them at the viewing, allowing them to submit their data directly to the Tenant Referencing Company?

Concerned GDPR awareness & general fraud may be putting applicants off? 

I'd really appreciate any info on how you manage this process?  I'm believe some companies (Open Rent) allow applicants to 'Rent Now' taking it straight off the market - my worst nightmare!

Thanks very much   

I don't ask for any financials. I hand that off to the Referencing Company. I do not want to pry and poke into someone's life quite that much... I do my own viewings, so I certainly do make a judgement on whether I want them to proceed... not an Agent's view. If you want someone to put some "skin in the game" then it might be OK to ask for a small holding deposit, while referencing (that you pay for) proceeds through to successful conclusion. We have discussed this here before. The holding deposit is taken on the basis that the information the Tenant has provided is correct, and they have no skeletons in their cupboards, so they they fail referencing in a fire-engine-red way you get to retain the holding deposit because they - through their actions - have effectively pulled out of the prospective tenancy...

You would need to word all that carefully... I suppose. My last tenancy started at the end of May so I just avoided all this... I'm not thinking about it too much until the next one.

I may just operate as I am and swallow the cost... I may do this holding deposit thing. I figure a rent change of +£10 or +£15 per month isn't going to put anyone off... but it will offset, and more, my costs on an average tenancy. The thing I'm concerned about is tyre-kickers.

I think I will log into Upad and see how they're handling this now on their Basic offering.

Very interesting that Upad's page for their Basic offering (£45 for listing, initial enquiries and compliance service) still says - "Once you've chosen your tenants, we can comprehensively reference them at no extra cost to you and only £75 (£62.50 + VAT) charged to the tenant (cost per tenant). We don't charge any other fees to tenants." - I've not been through it in the brave new world... so I wonder if that's just something that needs updating.

The only time I asked for bank statements - on the basis of evidencing a) regular income, and b) regular payment of previous rent, was when one of my tenants wanted to move his girlfriend in.

The tenant had unwittingly mentioned a few months before that she had a gambling habit and was untrustworthy with money.

So rather than refuse I asked her for 6 months bank statements citing the reasons above.

She declined my request, and decided not to move in.

Happy days.

Thanks guys    Perhaps I'm just a control freak, but I feel far more comfortable seeing these.  I'm genuinely surprised other people don't seem to worry.

I had a previous applicant who seemed 'perfect' in every way.  However, the bank statement showed multiple daily payments, albeit relatively small £amounts, to Bet Fred/William Hill/Paddy Power etc.  Tenant referencing wouldn't have picked this up.  I just felt this wasn't the tenant for me.

It's probably because we're not Underwriters... but giving up a similar asset (so maybe we should be). All referencing will care about is basic affordability. To mirror your genuine surprise about us, I have the same about your approach. And I don't think there's anything wrong with being a control freak.

For me it's an absolute requirement. They have to agree to that scrutiny before viewing is even arranged. Bank statements tell you everything about someone; that's why mortgage lenders request it.

Quote from: Mandy on June 08, 2019, 03:19:51 PMThey have to agree to that scrutiny before viewing is even arranged.

Each to their own.

I've asked to see wage slips/bank statements for proof of income especially if I like a tenant but they say their credit check is poor.  If we both want to do business then it works.