potential tenant with IVA and CCJ

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    potential tenant with IVA and CCJ

    Got a tenant who is ready to pay 12 months rent upfront but disclosed at the start that she has an IVA. On that basis we decided to do referencing and now it has come back with two CCJ's(less than 1k) as well . What would you do in similar circumstances?

    Never had a case like this before.

    comments welcome.
    Thanks

    #2
    3 red flags! I would say she's a big risk and would only consider her with a guarantor.

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      #3
      Agent says, since she is paying full rent upfront cant have guarantor.

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        #4
        I think I would pass. A significant proportion of IVAs fail and she could fall into arrears as a consequence of mis managing her finances. What reason does she give for the IVA. I'm also a bit suspicious that she can pay 12 months rent upfront during the iva. Where has that come from? And how recent are the ccjs?

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          #5
          Originally posted by londonrulz View Post
          Agent says, since she is paying full rent upfront cant have guarantor.
          Get a new agent.
          I kind of see their point, but what do they plan to do after the first 12 months?

          I'd not risk it, personally, particularly right now.

          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Originally posted by Jon66 View Post
            I think I would pass. A significant proportion of IVAs fail and she could fall into arrears as a consequence of mis managing her finances. What reason does she give for the IVA. I'm also a bit suspicious that she can pay 12 months rent upfront during the iva. Where has that come from? And how recent are the ccjs?
            ccj are from 2018-19 and IVA (business venture) of around 12k from last year. I actually asked the question on how did she have access to all money to pay upfront, but got vague answers like savings etc.

            From the responses, seems will have to pass even tho it means loosing referencing fee and leave the property vacant.

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              #7
              Originally posted by jpkeates View Post
              Get a new agent.
              I kind of see their point, but what do they plan to do after the first 12 months?

              I'd not risk it, personally, particularly right now.
              suggested sending a notice after 6 months to vacate in 6 months time.

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                #8
                Originally posted by londonrulz View Post

                ccj are from 2018-19 and IVA (business venture) of around 12k from last year. I actually asked the question on how did she have access to all money to pay upfront, but got vague answers like savings etc.

                From the responses, seems will have to pass even tho it means loosing referencing fee and leave the property vacant.
                Sounds a bit iffy doesn't it? Vagueness is never acceptable when contemplating entering into a legal agreement with someone, she really needs to be upfront.

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                  #9
                  Originally posted by londonrulz View Post
                  suggested sending a notice after 6 months to vacate in 6 months time.
                  In which case definitely change the agent.
                  After September, s21 notices are planned to expire after 6 months again (unless the government changes its mind).

                  And, even ignoring that, it takes you money, stress and cost to evict a tenant who doesn't have anywhere to go (with problem credit history).
                  Why would you want to risk that.

                  Disclosing the IVA is actually a plus for me, but unannounced CCJs are a showstopper.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    From the timeline, I expect that the CCJs are part of the IVA and because of this the applicant did not believe them to be separate issue any more.

                    On a separate note, I've always found it amusing that you can only go bankrupt or get an IVA if you have the money to do so.

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                      #11
                      If I was one of her creditors I'd be a bit upset that she has 12 months rent available. Something potentially dodgy is going on here. I'd pass.

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                        #12
                        Originally posted by jpucng62 View Post
                        3 red flags! I would say she's a big risk and would only consider her with a guarantor.
                        I do not rate guarantors at all so it would be a total NO from me, the rental market is on fire at the moment, there must be better bets than this one.

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                          #13
                          As said. Pass on this tenant and find a new agent.

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                            #14
                            If you pay a Letting Agent a finders fee and the tenant defaults can you get your finders fee back ?

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                              #15
                              Originally posted by Piffy View Post
                              If you pay a Letting Agent a finders fee and the tenant defaults can you get your finders fee back ?
                              That would be a no in my opinion, unless there is some strange clause in the paperwork you sign which says otherwise...... i cannot see any agent agreeing to that myself. They may find the tenant for you, but it is your decision to agree to let to them, so you take the risk..... as always !

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