Rent Guarantee with CCJ's?

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  • Rent Guarantee with CCJ's?

    Hi All,

    I'm a fairly new landlord, been renting for 1yr and looking for 3rd tenant. Prev 2 were fab (both were in the process of buying so were only short termers). I've got an application in from a lady with 3 children who does not meet the standard 2.5x income + has 2 uncleared CCJ's. I am flexible BUT I had intended to get my rent guarantee via rentcheck and they do not accept uncleared CCJ's.

    Does anyone know any company who will? And should I even bother credit checking, should I decline now? I've no dealings with CCJ's, 1st 2 tenants scored very high.

    Any advice????

    Thanks

  • #2
    I cannot imagine any rent guarantee company being interested in someone with not just one but TWO uncleared ccjs.

    I'd decline now, if I were you, unless the prospective tenant can produce a guarantor who does pass the credit checks.
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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    • #3
      Thanks mind the gap,

      She has completed the guarantor section of the application with her father but he is retired so that concerns me. She works for her brother who owns his own business so I would expect he would be the next best option for a guarantor. If I did request this what forms would I need the guarantor to complete? Would the guarantor be listed as a tenant and is the shortfall in income multiples (by about £2300pa) a concern?

      Thanks

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      • #4
        The problem you have perhaps not considered is that this lady is almost certainly going to be claiming Local Housing Allowance. A guarantor is not to be confused with a tenant. It appears you are not conversant with such a situation and if you don't fully understand the implications then perhaps you might want to look for another tenant.
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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        • #5
          Originally posted by missb View Post
          Thanks mind the gap,

          She has completed the guarantor section of the application with her father but he is retired so that concerns me. She works for her brother who owns his own business so I would expect he would be the next best option for a guarantor. If I did request this what forms would I need the guarantor to complete? Would the guarantor be listed as a tenant and is the shortfall in income multiples (by about £2300pa) a concern?

          Thanks
          The brother would in theory be a more acceptable guarantor (unlerss the father could demonstrate that he had sizeable savings and was prepared, for example to pay six months rent up front).

          The guarantor is NOT a tenant - it is someone who agrees to be legally liable for the tenant's financial commitments re the property, if the tenant is unable or unwilling to meet those commitments him/herself.

          Whose income falls short - this is not clear? If it's the tenant's, then she would need to demonstrate how she intends to make up the shortfall - e.g. with HB as Paul f suggests.

          All in all this has a bad vibe - I'd find someone with less baggage!
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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          • #6
            CCJ's not always lodged.

            If this prospective tenant has 2 ccj's she may owe more that creditors have written off, take the advice of others and walk away.

            In the past I had a HB tenant that left owing over £2k rent by time we finally got possession. Our solicitor advised us not to pursue a ccj as we throwing good money after bad, it very unlikely she'll ever be in a financial position to repay. I have since found out she owes a lot of people and companies money, none of which has gone to ccj. I got this information from tenant father who came to our door looking for his daughter, he shared her creditors woes, he even provided written proof for our solicitor to use on our behalf.

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            • #7
              Thanks for all the help. I have taken this collective advice and walked away. I am just not experienced enough to deal with guarantors and really don't need the grief. Fingers crossed my viewing tomorrow works out.

              Thanks again.

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