Tenants with Bad credit history...

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    Tenants with Bad credit history...

    Just wondered if someone could offer us some advice.
    We've been unsuccessful in renting my old house, having recently moved in with my girlfriend. It's in very good condition, but unfortunately not in a great area. We've had a number of applicants, all of which have either been DSS or put off by the area.
    The question is... One couple turned up, both had full time jobs, both seemed nice, and didn't seem put off by the location. In short, ideal. Unfortunately, when I mention Credit checks, they both looked at each other and then admitted that there wasn't a snowballs chance in hell that they'd pass a check. They went on to explain their situation and that the issues were all in the distant past and that they just wanted a chance, etc.. etc...
    I mentioned Guarantors and they both admitted that neither of them was in a position to offer anyone as a guarantor. They could both supply work references and pay the deposit, but other than that they could offer no security.
    They really seemed genuine and I would love to help, but I don't want to leave myself open to abuse. I could just simply say sorry, no thanks, but I'm not convinced I'm going to find anybody in a better position.
    Having said that, I'm not desperate and am willing to wait or the ideal tennant, I just wondered if anybody had any advice that might help them, if not with me, than with other landlords.
    Thanks.

    #2
    You could always ask for a bigger deposit. My ex tenants did have CCJ's in the past. But they stayed at my property for 18 months with not one late or missed payment. So I guess it’s a judgement call.

    At the end of the days it’s up to the Landlord to decide.

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      #3
      If they have a poor credit history, then you could accept them if they could provide a guarantor. The fact that they cannot provide one is the thing I'd be most worried about. No parents or wealthy (relatively speaking) relatives? Maybe they do have guarantors, but don't want them to have to foot the bill if/when they default on the rent. You're running a business, so take the sentimentality out of the occasion and I don't think you can help this couple, however nice they are/appear.

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        #4
        A larger deposit does seem like a reasonable compromise, but I must admit, the fact that between them they don't know a single person that would stand as guarantor does set the old alarm bells ringing... time to put the old business head on. Thanks!

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          #5
          Hi,

          Already been down this road.The guy had a history of not paying for mobile phone debt.Siad he had lent to friends who had let him down.Gave himand the girlfriend the chance, now find that my signature has been forged and the DSS being taken to the cleaners.Whatever you do cover yourself, and keep a paper chain of what you do when.Make sure anything you write is sent proof of posting, they can deny recorded delivery.

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            #6
            First off, forget trying to help them. Not your problem and quite possibly just a sob story, however genuine they appear. All good con artists appear genuine.

            It's also possible they *are* genuine, but you need to thoroughly check out everything before you can ascertain this.

            What is the employment history? How long have they been in work? How far in the 'distant past' is the bad credit? Has it been paid off?

            It sounds possible they may have been trying to encourage you to take them on without bothering to do a credit check, because what's the point if they're bound to fail? Ask them to pay for a credit check and see how bad it actually is. Could be one satisfied CCJ 5 years ago. Could be 10 unsatisfied in the last 2 years.

            But also, ask them to tell you, in advance, what you're going to find out from the check.

            I'd also make doubly sure that employment references checked out - sometimes it's just a phone number with a friend pretending to be the boss, or a forged letter from a non-existent company.

            Ditto references from the current landlord; check the land registry to see whether the property is owned by the person they claim is the landlord, and the electoral register for the property.

            Ask to see the last two years' bank statements (do claimed salaries and rent payments match bank statements' income and outgoings?) Ask to see their passports to ensure they are who they say they are. Take photocopies of everything.

            Then, and only then, contemplate taking them on as tenants.

            If you are finding it hard to get a decent tenant, perhaps the rent is too high? Better a lower rent and a reliable tenant...

            Comment


              #7
              If, as they say, 'there wasn't a snowballs chance in hell that they'd pass a check', why are you even bothering with them? Doesn't their admission tell you there's something major wrong, and not in the distant past?

              And with no guarantor it's a recipe for disaster.

              Let some other LL be the mug.

              Comment


                #8
                Originally posted by p_cas View Post
                If, as they say, 'there wasn't a snowballs chance in hell that they'd pass a check', why are you even bothering with them? Doesn't their admission tell you there's something major wrong, and not in the distant past?

                And with no guarantor it's a recipe for disaster.

                Let some other LL be the mug.
                But that doesnt automatically mean they are bad tenants. I, within the past 5 years have gone through a divorce and now am happily married again, we rent privately, but I know if I had to go through an agent that I wouldnt pass a credit check, this is to do with debts from my previous marriage, however it doesnt mean we are bad tenants, and our rent is paid on time every month. Every situation is different and also being a letting agent myself I have seen some brilliant tenants who on paper would fail every time and the flip side to that is some of the worst tenants I have come across have on paper been some of the best. I would consider more deposit or guarantor and if they are serious they will try to accommodate your requests, if they do this I would say it speaks volumes.

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                  #9
                  My tenants told me he had a 50k per year job, I even got it verified (big bank) that he worked there,

                  No prob I thought,

                  Now it appears he was only a temp on a contract on an hourly wage and the contract finished a month after he moved in.

                  see my thread on the main board...


                  " My dilemma with bad paying tenant"

                  landlordzone.co.uk/forums/showthread.php?t=29492

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                    #10
                    Dont do it unless you are 100% sure
                    I've let my heart rule my head thinking that someone would take good care of my dream home & just by scratching the surface this month discovered that they had ccjs and were after a fresh start now at my expense. after seeing their old rented place they are now in a palace compaired to that and are refusing to go!!

                    This is a business not a charity

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                      #11
                      don't do it...let someone else be the mug! Bitter, me? Never!
                      Unshackled by the chains of idle vanity, A modest manatee, that's me

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                        #12
                        I was once approached by a couple (20 years ago) who wanted to rent my property who said that they could not provide references. They seemed genuine. I took a chance.
                        My house had 3 bedrooms. I adapted my lease and retained 1 bedroom for my own use, (storage) so they did not have "Full Occupation" and I could come and go between 10am and 5 pm. Which meant I had right of entry.
                        I made a note of the cars reg no. Did an HPI check, rang the Finance company and established that the payments were up to date, so I rented them the property.
                        After they moved in I found out why they could not give references. He was a married Police Sergent who was about to leave his wife and she was a secretary who was about to leave her husband and they wanted somewhere to rent to set up home together.
                        As a landlord there is always an element of risk.
                        I would advertise it with a big deposit with a lower rent. This way you may get a better class of tenant who would put up with the location because of the lower rent and the loss of one of your bedrooms.

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                          #13
                          PS. If your house is in good condition and in a poor area why dont you rent out your girlfriends house and she moves in with you, it may be in a better area and easier to find a tenant. but perhaps she is a tenant herself and its down to "cash flow"

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