Credit checks on tenants

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    Credit checks on tenants

    Hi all

    My mum has moved in with her BF and would like to rent her old house out. We've found someone through the next door neighbour but would like to run a credit check against them to make sure they are suitable.

    I printed out the TenantVerify form but the tenant is concerned that the level of detail is too great and that giving someone all that information may possibly expose them to identity fraud. Must admit it does seem very onerous given i can get a credit check done from an estate agent based soley on previous address and basic details.

    Does anyone know another company which a private individual such as ourselves can get a credit check done?

    Thanks

    #2
    Originally posted by hobo View Post
    Hi all

    My mum has moved in with her BF and would like to rent her old house out. We've found someone through the next door neighbour but would like to run a credit check against them to make sure they are suitable.

    I printed out the TenantVerify form but the tenant is concerned that the level of detail is too great and that giving someone all that information may possibly expose them to identity fraud. Must admit it does seem very onerous given i can get a credit check done from an estate agent based soley on previous address and basic details.

    Does anyone know another company which a private individual such as ourselves can get a credit check done?

    Thanks
    Try one of these:
    CALLCREDIT (0870-060 1414)
    EQUIFAX (020-2790 3000)
    EXPERIAN (0115-934 4050)
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Online Checks

      Hi try this - its run by Equifax

      https://checkmytenant.custhelp.com/c...v_homepage.php

      Comment


        #4
        Originally posted by hobo View Post
        Hi all

        My mum has moved in with her BF and would like to rent her old house out. We've found someone through the next door neighbour but would like to run a credit check against them to make sure they are suitable.

        I printed out the TenantVerify form but the tenant is concerned that the level of detail is too great and that giving someone all that information may possibly expose them to identity fraud. Must admit it does seem very onerous given i can get a credit check done from an estate agent based soley on previous address and basic details.

        Does anyone know another company which a private individual such as ourselves can get a credit check done?

        Thanks

        As a Landlord you will need this level of information to make a decision to let the property to the tenants. Yes, it is a lot of personal information, but if the tenant does a bunk owing money, then you can use this information to track them down.

        Landlords who used to live in their own property are much more at risk of identiry theft than the tenants that are moving in.

        You must, must, must verify your tenants ID and credit worthyness. Just have a read of some of the threads on this forum on 'dodgy tenants'!

        Comment


          #5
          I agree with ColinC - if my potential tenants won't fill in the Tenantverify form, they don't get a chance at my property, end of story. Having been on the "receiving end" of bad tenants I believe this level of info is vital. I learnt my lesson by not referencing tenants properly - don't make the same mistake.
          Unshackled by the chains of idle vanity, A modest manatee, that's me

          Comment


            #6
            How very sensible of you to enquire about tenant verification and credit checks before your Mum's first tenant moves in.

            Don’t make the mistake of thinking "oh they're a friend of the neighbour so it'll be all right". There are plenty of woeful posts after the sh1t has hit the landlord's proverbial fan on this forum detailing the same scenario time after time after time.

            What you must also do, is read up on:
            • Assured shorthold tenancy agreements
            • Tenancy deposit schemes
            • Annual gas safety checks

            Does your Mum own the property? Is it mortgaged? If so, will her mortgage lender permit the letting with her existing arrangements? (I would do the mortgage enquiries anonymously to begin with to hear what they say and then decide how to handle things.)

            What is your Mum's strategy if things do not work out with the BF and he throws her out?

            Have you considered employing a local agent's "tenant let only" service?

            Your Mum will need to complete a tax return every year of course.

            I'm sure other members will post their thoughts on what else you need to read/do.

            Plenty to read and think about. You did the right thing by posting on this forum BEFORE the letting.

            Comment


              #7
              Originally posted by hobo View Post

              I printed out the TenantVerify form but the tenant is concerned that the level of detail is too great and that giving someone all that information may possibly expose them to identity fraud. Must admit it does seem very onerous given i can get a credit check done from an estate agent based soley on previous address and basic details.

              Thanks
              If the potential tenant is reluctant to give this information then I wouldn't even consider it worth taking the risk of renting to them. Who do they think will steal their identity, someone at TenantVerify? You?

              I would make the assumption based on this that they have something to hide. Do the fullest check that you can on any tenant. Why take the risk, you'll be sure to regret it later.

              Comment


                #8
                Let me ask this question then:

                Considering the risk of LL default on their possibly non-BTL mortgage, risk of non compliance with maintenance obligations etc, should tenant ask same details of LL?

                What would the LLs here think of that?
                Now signature free.

                Comment


                  #9
                  There's much more chance of the tenant defaulting on the rent than the landlord defaulting on the mortgage, whatever the current climate.

                  I wouldn't give my tenant mortgage details. They don't need them because it wont tell them whether I'm in default or not. Plus they only need to give details to one person, I'd potentially have to give my details to 200 people. I don't think so!

                  Tenants are receiving the use of an asset woth £250k or more, they are the ones who need checking.

                  Comment


                    #10
                    Originally posted by attilathelandlord View Post
                    There's much more chance of the tenant defaulting on the rent than the landlord defaulting on the mortgage, whatever the current climate.

                    I wouldn't give my tenant mortgage details. They don't need them because it wont tell them whether I'm in default or not. Plus they only need to give details to one person, I'd potentially have to give my details to 200 people. I don't think so!

                    Tenants are receiving the use of an asset woth £250k or more, they are the ones who need checking.
                    But when one looks at the actual monetary damages and inconvenience that could occur to each party, it is not dissimilar.

                    A tenant has the risk of being evicted at very short notice and being made homeless though no fault of their own, despite having a contract and fulfilling all terms.

                    Surely a tenant is just as entitled to know if a LL is capable of fulfilling his/her side of the contract as LL is of tenant?

                    I made sure LL has a BTL mortgage on my current house, but had to rely on honesty of Agent that it was indeed so.
                    Now signature free.

                    Comment


                      #11
                      But how can you guarantee anything? Yes your landlord has a BTL mortgage very probably, but you don't really know unless you see the mortgage documents.

                      You don't know whether your landlord is paying the mortgage or not.

                      The landlord always stands to lose potentially more, as the court system is so slow in this country, it could potentially take you 5 months of no rent to remove a non-paying tenant. That could be £5k to £8k in rent.

                      How can the tenant ever possibly lose that amount to a landlord?

                      Comment


                        #12
                        Why didn't you start a fresh thread lorenzo?

                        Comment


                          #13
                          What T really needs to know is:
                          a. whether L's property is mortgaged; and, if it is
                          b. whether mortgagee (M) has given consent in writing for L to sub-let. If it has, M is bound by T's tenancy if it ever repossesses.
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment


                            #14
                            I am definitely with Attilathelandlord on this. Landlord financial risk is massively higher than any tenant's risk. No tenant gets into any of my properties without having passed a very through checking procedure - and parting with 2.5 month's rent (1.5 month deposit and 1 month rent in advance) - all rental payments by standing order (to my agent).

                            I would prefer to turn down suspect tenants and have a void month than all the hassle which can come from dodgy tenants!
                            Mrs Jones
                            I am not an expert - my posts are my opinion and should not be taken as fact!!

                            Comment


                              #15
                              I'm considering starting to take DNA samples!

                              Comment

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