Hazards of using a tenant referencing service

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    #16
    Originally posted by Hippogriff View Post
    A Tenancy, I feel, isn't in the same league as a mortgage... therefore the checks are going to be less invasive / stringent / complete.

    If a Landlord wants to go above-and-beyond then I'd support that, as it makes sense... but it could obviously put some people off.
    Thanks for your response. I'm a new landlord so am feeling my way into this and hard heard the warnings loud and clear about the cost of getting in the wrong tenant. Not least on the Ch5s Nightmare Tenants, Slum Landlords where often landlords end up as much as £10K out of pocket which they struggle to get back.

    Arguably the downside for a landlord is greater than a mortgage lender as provided there is sufficient equity/stability in the housing market the lender won't loose any money as all of their arrears, admin and repossession costs etc will be reimbursed at the property sale. (they may even profit from it if their charges are higher than their actual costs)

    I totally agree that renting shouldn't be as involved as a mortgage application (and making it so will put some tenant off) but IMO the cumbersome eviction process legislation makes the referencing requirement disproportionately high.

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      #17
      All true. Just recognise that those stories are cherry-picked for their ability to shock. I've been doing this for some years now, with multiple properties (I'm by no means a big player) and I've not had the Nightmare Tenant yet - just a few challenges.

      Your bad Tenants are in the minority.

      A good Tenant today can become a bad Tenant overnight due to a change in circumstances... that's something that happens after all the positive referencing.

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        #18
        Originally posted by Hippogriff View Post
        All true. Just recognise that those stories are cherry-picked for their ability to shock. I've been doing this for some years now, with multiple properties (I'm by no means a big player) and I've not had the Nightmare Tenant yet - just a few challenges.

        Your bad Tenants are in the minority.

        A good Tenant today can become a bad Tenant overnight due to a change in circumstances... that's something that happens after all the positive referencing.
        That's reassuring to hear. I'm still stunned from episode where the tenant stole the skirting boards, the turf(!), the light switches(!!), the electrical sockets, white goods and tore up the laminate flooring!

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          #19
          Before theartfullodger comes along and says it... I will paraphrase theartfullodger myself - consider whether the game is for you if you feel you do not have the emotional and financial reserves necessary to cope with the Tenant from Hell who... 'steals the skirting boards, the turf, the light switches, the electrical sockets, white goods and tears up the laminate flooring!'

          And, yes, one can over-think things.

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            #20
            There's a difference when you are renting properties you've never lived in.
            There's a financial (and anger issue) when someone treats the property badly, but there's no emotional impact.
            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).

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              #21
              I think of anger as being an emotion, myself. I think it can be very emotional if you think someone is playing you and the system. Doesn't matter if you lived there - but I think that can be worse. If you don't have the financial reserves then that will bring on some emotions as well.

              In fact, I cannot see how it wouldn't impact anyone emotionally once it started to go really bad - the only exception I could think of is when a Landlord has very many properties and is totally immune to almost anything.

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                #22
                I provided my last landlord (non agency let) with the print out from my bank showing every rent payment for the previous 14 months. I don't have anything else to hide but I wanted to show him that I paid my rent every month in full.
                One option perhaps?

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                  #23
                  Originally posted by Hippogriff View Post
                  In fact, I cannot see how it wouldn't impact anyone emotionally once it started to go really bad - the only exception I could think of is when a Landlord has very many properties and is totally immune to almost anything.
                  I'm not suggesting that there's no emotion (I get really hacked off at inanimate things, like radiators that fail).
                  But this is a business (even if it's one property and it became one as an accident).
                  Crap happens, and you need to be prepared for it and deal with it.

                  Work can be stressful and cause worry, but dealing with that is part of the job.
                  If it's too painful to deal with someone wrecking the place, do something else.
                  If shoplifting bothers you that much, owning a shop is not for you.
                  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).

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                    #24
                    On the subject of tenant referencing does anyone have any recommendations for tenant referencing services and rent insurance services? Thanks

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                      #25
                      http://www.landlordzone.co.uk/direct.../tenant-checks

                      or RLA & NLA do checks, I use the "Full" versions (& I pay).

                      Rent insurance? Nah, unless part of overall landlord insurance.

                      You may need to read the terms of any rent insurance scheme to discover what sort of tenant checks you will need. e.g.
                      http://www.nlatenantcheck.org.uk/dow..._12_months.pdf
                      Tenant Reference

                      Checks carried out before the commencement of the Tenancy Agreement including:

                      a) a credit check obtained from a licensed credit referencing company on a Tenant or Guarantor showing no County Court
                      Judgements in the immediate preceding three years and no outstanding County Court Judgements;
                      b) copies of two forms of identification, one of which must contain a photograph; and
                      c) a written employer’s reference confirming that the Tenant or Guarantor (if applicable) is in current and permanent employment
                      and that their salary is sufficient to pay the Rent after the deduction of normal living costs or alternatively is at least two and half
                      times the monthly Rent, or (where the Tenant is a student or DSS Tenant) a credit reference provided by a Tenant Reference
                      company shows a ‘Pass’ rating for the Tenant.
                      Bet many landlords don't usually get both b) & in particular c)..

                      How would
                      or (where the Tenant is a student or DSS Tenant) a credit reference provided by a Tenant Reference
                      company shows a ‘Pass’ rating for the Tenant.
                      happen? Surely student or "DSS tenant" would not get a "pass" (or is that the idea..)

                      DSS dissolved in 2001. Come on insurers, keep up!
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment


                        #26
                        Yes, that's the same checks as the Openrent offering. I think the OP has a point though about affordability issues slipping through the net with these checks.

                        Comment


                          #27
                          Originally posted by jpkeates View Post
                          Young people tend to have almost no credit history at all - they tend to score medium/average, but when you look at the detail, there's nothing there at all.
                          I am not young but there is very little detail on my credit report. That is because all the credit cards I have ever had were taken out before the banks started asking permission to release the data.

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                            #28
                            That's interesting.
                            Mine's awash with detail (even a credit card I don't remember even having).

                            But it's good, which is the main thing.
                            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


                              #29
                              I've found that employers rarely provide information and instead tenant wage slips, contracts(if new job) are relied upon. And we all know from being asked for references ourselves how short a tick box list the current landlord part is.

                              I use tenant referencing to provide a formal 'front' but the questions I could ask better myself. I rent out HMO rooms. Tenant referencing gets nowhere near asking the question I need answering for young men re affordability. Are they moving due to a relationship breakdown, and if so have they got children.

                              Affordability isn't always about having the money. It's also about prioritising it towards rent.

                              My ideal tenant. Young female(almost certainly no children) , working full time, no car(no loan).

                              Comment


                                #30
                                Andy - the latter part of your post seems to contradict the former. In fact does it matter about personal situation at all as long as rent is prioritised? In that case, proof that rent has been paid for however long you want to know for is surely the only thing that matters?

                                Comment

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