Tenant with CCJ

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    Tenant with CCJ

    Have just credit checked a potential tenant. He declared on application form that he has a CCJ - the tenant check came back saying it is an active declared CCJ for £229 on 4/12/2007.
    He now has employment earning £24000 a year and I have a letter proving this. Do you think I should still ask for 6 months rent in advance (probably not possible) or a guarantor? If he cannot provide either of these should I refuse the tenancy to him even though he is on a good wage ? The rent is £350 a months - all bills included so he should easily be able to afford it.
    Many thanks for any replies.

    #2
    With a guarantor or six months rent in advance I would take him. Without either of these would walk away.

    Comment


      #3
      What was CCJ for?

      Comment


        #4
        Have no idea what CCJ was for - it only says the amount on the tenant reference .

        Comment


          #5
          i would ask for 6 months back statements - then you can see if he can afford it - its not a huge rent for that salary.

          Comment


            #6
            I'd ring up the company also. Anyone can write a letter. Of course, the tenant could oops! lose the job the day after they move in.

            Comment


              #7
              Employment check (rather than just a letter) proving his wage plus a guarantor (UK home owner, CCJ free). A good wage doesn't mean he is going to pay you!

              In leiu of a gurantor I would accept three months rent in advance but as a rollover.

              Kind regards,

              John

              Comment


                #8
                Originally posted by alidee View Post
                Have no idea what CCJ was for - it only says the amount on the tenant reference .
                Well before you reject him, at least ask for the story.

                For example, I have an applicant at the moment who has a CCJ; apparently this is due to non-payment of car tax on a vehicle he no longer owned at the time but omitted to return the vehicle transfer documents to DVLA when he sold it... all the court documentation was sent to an old address and he knew nothing about it at all until a credit check was run. Assuming that's all true, I wouldn't regard the possession of a CCJ per se to make him unsuitable as a tenant.

                Comment


                  #9
                  It would be prudent to obtain the guarantor to gurantee on a deed, that they are guranting the current tenancy agreement, renewal or variation thereof. At least this way you have the guarantor set on the inception of tenancy and it carrys through whilst he is there.

                  It would also be prudent to request 3 months in advance, this could be on a rolling month basis. So in effect he had pre-paid the last three months of rental and he is paying the rental on a month to month basis also.

                  This way you have as much security as you will be able to get. Bearing in mind that if the tenant falls in arrears you can rely on the guarantor. Suffice to say the guarantor should also be full referenced checked, confrim that he owns property in uk and is up to date. You could request to see last years mortgage statement and also confirm via land registry website that they are the actual owner of the house.

                  Best of luck in your letting.

                  pebble - effective landlord solutions
                  www.pebbleonline.net

                  Comment


                    #10
                    Originally posted by alidee View Post
                    Have just credit checked a potential tenant. He declared on application form that he has a CCJ - the tenant check came back saying it is an active declared CCJ for £229 on 4/12/2007.
                    Provided that you secured your positions via guarantor or advance rent, only allow the tenant occupation once you have seen a copy of the CCJ.

                    It might be nothing, on the other hand it might be that a landlord has been so miffed with either rent owed or damages, that he or she has done a ccj. Can you risk rent arrears, or even worse, significant damages?
                    On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

                    Comment


                      #11
                      I am risk averse - I would therefore not even consider anyone without a perfect credit rating (although I must admit it is my agent who deals with this stuff and this would be his advice).
                      Mrs Jones
                      I am not an expert - my posts are my opinion and should not be taken as fact!!

                      Comment


                        #12
                        This tenant has asked his mum to be guarantor (she fits the crititeria).
                        His mum is now asking how long she has to be guarantor for - guess thats a good question. Anyone have any ideas ? Would it be until the CCJ is clear - have no idea how that happens myself. BTW the CCJ was for unpaid water rates which he is goin to show me proof of.
                        Thanks again for any advice

                        Comment


                          #13
                          Why take the risk though? Are there no other tenants who dont have a CCJ against their name? Ok, they could go bad too but you know this one at least has a record of not paying bills, next time he defaults it might be on the rent. Why risk it?

                          Comment


                            #14
                            Originally posted by p_cas View Post
                            Why take the risk though? Are there no other tenants who dont have a CCJ against their name? Ok, they could go bad too but you know this one at least has a record of not paying bills, next time he defaults it might be on the rent. Why risk it?
                            I would have said sometimes risk is acceptable when it is a calculated risk. If you wait for the 'perfect' tenant everytime then over a long period of time you are going to lose out on rental income.

                            I think if you follow many of the steps in this thread then you are well protected.

                            In terms of how long the gurantor is for, I would say until the tenancy finishes. You reference people once at the beginning, not every few months. If she wants out then that would sound alarm bells!

                            Kind regards,

                            John

                            Comment


                              #15
                              Hi John
                              Yes you are right. I found from another site that the guarantor is valid for as long as the tenancy which makes sense. Have told the tenant this info and am yet to hear back about what Mum wants to do but yes right to be wary.
                              Many thanks
                              Alidee

                              Comment

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