Prospective Tenant with IVA

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    Prospective Tenant with IVA

    Evening All,

    I’ve seen and read previous posts on the above matter but just wanted thoughts on what you would do in my current situation.

    I’m a private landlord not using a letting agency and spent most of last week with viewings of prospective tenants. The couple we chose seemed the right fit. Presented well, sociable, friendly, and exactly what we were looking for in tenants. When I contacted them to ask if they still wished to rent our property they accepted.

    I told them what checks I would have to go through etc. One of the tenants volunteered that he had an current IVA prior to the checks. Their previous landlord references are fine, their current salaries are more than enough to cover the monthly rent even if they were renting individually and they were open that they were renting for a year or so initially to get a feel for the place before looking to buy themselves.

    The tenant with the IVA has also said that they have a guarantor if that is something I would accept and his IVA wasn’t for missed rent etc.

    The fact he was open and honest about it in the first place is a big plus for me and I think if I do accept I will take up the option of a guarantor for that extra protection. He made the point that an IVA can be seen in the light of it takes into account all expenditure and the payment comes from part of their disposable income so wouldn’t have a negative effect on rent payments, which does make sense.

    I’m leaning towards accepting them as tenants, the other tenant has good credit history and a very good salary. What I wanted to know was, armed with the information above would you make the same choice or am I being naive?

    Apologies for length, I did try to be brief.

    #2
    IVAs have a high failure rate. Do you know which IP it is with, that might sway me? However an iva for me might mean bad life choices, and there's plenty of prospective tenants out there without this as an issue. How long have they been a couple?

    Comment


      #3
      My concern would be why you arent asking these questions BEFORE you invite people to view.

      A good pre-application questionnaire would have eliminated this couple for me.

      I would not then have your dilemma.

      Of course they may be great tenants BUT let them be great tenants after their debts etc have been wiped out.
      My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

      Comment


        #4
        I agree with the above comment...... why was this not disclosed before any viewing took place. There are so many good tenants out there that taking any ' chance ' just seems unnecessary.

        Comment


          #5
          You want tenants who have plenty of cash savings. Having IVA is the opposite of cash savings -- and the fact that someone could be in debt whist having a good salary makes it even more problematical.

          If they owe you money and you sue them, the IVA may have first port of call and you will be in competition with it.

          Forget thinking that a guarantor is going to help in this situation.

          Comment


            #6
            Why bother?

            ...and why didn't you check the (free) IVA register before offering them a viewing?

            Comment


              #7
              And here is the dissenting opinion to the above.

              Someone who is on an IVA shows me that at least they are trying to resolve their situation. They are improving from what they once were. I don't know as to the reason for the IVA, it could be something mundane. A close friend of mine ended up on an IVA following a messy divorce.

              The rent they pay will be taken into account for repayment of the IVA, so they will always have that money to pay you each month.

              They were upfront with you about it and it's only one of the tenants, not both of them.

              Personally if they are the nice people that you say they are, I would almost certainly take them on myself. I suspect that they will end up being model tenants, partially through fear that they won't get anywhere else again.

              Comment


                #8
                Originally posted by ExpertInAField View Post
                if they are the nice people that you say they are, I would almost certainly take them on myself.
                That is the worst advice I've seen on here for a long time.

                Comment


                  #9
                  Originally posted by ExpertInAField View Post
                  The rent they pay will be taken into account for repayment of the IVA, so they will always have that money to pay you each month.
                  A sensible landlord will have no interest in someone who just has the money available to pay each month (regardless of what arrangements are in place).

                  Comment


                    #10
                    It wouldn't be a straight rejection from me, it depends if you think you can trust him. Every one of use has made stupid choices in our youth and most have learned from it. Maybe find out more about the circumstances that lead to it and ask for bank statements.

                    Comment

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