The value of tenant checks...

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    The value of tenant checks...

    Simple question, but I imagine there are a million variations so interested to hear what you all think..

    Property I will be vetting for is a 3 bed semi in good condition in a nice area, good schools and on for £950pcm

    Thinking references (previous/current landlord and work?)
    Payslips for last 3 months (for a stresstest/proof they are working)
    Credit check through Experian
    Bank statements for last 3 months (this feels quite intrusive, but then I give mine up when getting a mortgage and there really isnt anything to worry about in there!)

    A conversation with them, the 'gut feeling' hopefully adds to the picture above..

    #2
    I just had a run in with the agents about this, agents insisted I meet with them( i always meet my tenants) I asked the prospective tenant for additional info that I wanted to see, such as payslips, bank statements, previous address council tax and utility bills letter from employment saying how long they have worked there and/or the work contract , I even ask to see any notice the LL may have given them to collaborate their reason for moving from their current place and of course the right to rent checks. All this in addition to what the agents ask for to do referencing. I appreciate not all these document can be shown but the more the better their chances. The tenant went back to the agent saying he was offended I asked him these questions my bet is he could not supply most of the info.

    The agent calls me up to say I should not ask for such documents citing data protection. and that they ask all they need to feed the info through to a referencing agency who comes back with a yes or no.

    I told them I am not willing to only depend on their data feed to a referencing agency and I insist on seeing hard copy evidence and If they are not willing to facilitate the letting with the additional info I am happy to pull the property.

    In my experience the only tenant I did not do these checks with and went with what the agent told me, i got stung badly.

    Any tenant that I have checked this additional info with have been excellent.
    Any advice I give is my opinion and experience, I am as you also learning.

    Comment


      #3
      Sunnyp - get rid of your agent asap.

      You are (when taking on a tenant) taking on a MUCH greater risk than any mortgage company giving you a mortgage - and you ask for and get whatever you like. Data protection has no relevance to the scenario at all, and any agent who mentions this (or that a Yes/No from a credit checking agency is all you want) needs a hard kick in the teeth.

      You ask for what you want, you get it, or if not you look for another tenant.

      Comment


        #4
        Originally posted by AndrewDod View Post
        You ask for what you want, you get it, or if not you look for another tenant.
        100% with you here.

        As a result my voids are longer I know that there are LL in my area that will take anybody the agent presents to them, as a result agents don't like to work with me because I expect them to do some due diligence and ask awkward questions and that means more work for them.

        But when I do get my tenants they are with me longer and I get paid.
        Any advice I give is my opinion and experience, I am as you also learning.

        Comment


          #5
          I think we should introduce a landlords drinking game.
          Any time a letting agent quotes "data protection", we take a drink.

          I'll be living in a skip after the first six months, but it'll be worth it.
          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
            In the "Documents" section of this website, there is a "Residential Tenancy Application" form, ask your prospective tenants for all the information asked for in that form.

            Comment


              #7
              Originally posted by AndrewDod View Post
              You are (when taking on a tenant) taking on a MUCH greater risk than any mortgage company giving you a mortgage - and you ask for and get whatever you like. Data protection has no relevance to the scenario at all, and any agent who mentions this (or that a Yes/No from a credit checking agency is all you want) needs a hard kick in the teeth.
              Oh come on. Even if it took a year to get a tenant out, most landlords liability is therefore £10k-£20k. That same property might have a mortgage on it of at least £100k.

              Getting a tenant to print off Experian credit reports is just a subversion of Experians own data protection policies. Landlords don't share financial information so aren't entitled to have it either.

              On paper, my partner & I are probably fairly desirable tenants: Late 20s couple, both in good jobs with rent around 20% of income. I'd run a mile if any landlord asked to see my bank statements or experian reports (and no there is nothing to hide in there).

              Comment


                #8
                I use Tenantverify (no personal link to the company) and find their reports very good. The forms themselves are so detailed that they make some applicants run a mile! There is however no substitute for meeting the tenant in person - gut feel is important too!
                Unshackled by the chains of idle vanity, A modest manatee, that's me

                Comment


                  #9
                  Ryan28,

                  It is not a case of whether the landlord is 'entitled' to see it - what he is entitled to is to decline prospective tenants. The landlord can ask for what he wants, prospective tenants are entitled to decline (like you would), the landlord can say no - like Sunnyp would in your case. Sunnyp states his voids are longer and that is a consequence he is willing to take.

                  Comment


                    #10
                    AndrewDodd is right when he says landlords are taking a much higher risk than mortgage companies. Not all LL will have a buffer of 10-20k as Ryan suggests. For some missing 6 rent payments could tip them over the edge or at least make some sizeable financial sacrifices in their personal lives .

                    The mortgage company has security on the property itself.

                    Ryan would be an Ideal tenant for my property ONLY if he was willing to prove that he is a consistent rent and bill payer.

                    I am after all handing over an investment in the tens of thousands if not hundreds that needs to be funded.
                    Any advice I give is my opinion and experience, I am as you also learning.

                    Comment


                      #11
                      More to the point, the mortgage lender is a large company with security in scale(and, as you point out, nowadays an asset to entirely offset their risk),landlords tend to be individuals renting to people with few assets.

                      Getting it wrong could be very serious financially (have a look at the timescales for a repossession thread).
                      A landlord with a non-rent paying tenant has all the normal repair obligations, may be paying a mortgage and may have to persuade HMRC not to demand tax on income not received.
                      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


                        #12
                        Originally posted by Ryan28 View Post
                        Oh come on. Even if it took a year to get a tenant out, most landlords liability is therefore £10k-£20k. That same property might have a mortgage on it of at least £100k.
                        Oh come on yourself. This is simply a nonsense. The mortgage company usually has 100% security on their debt (when property prices are rising) and often more than 100%.

                        Originally posted by Ryan28 View Post
                        Getting a tenant to print off Experian credit reports is just a subversion of Experians own data protection policies. Landlords don't share financial information so aren't entitled to have it either.
                        The logic escapes me.

                        Originally posted by Ryan28 View Post
                        On paper, my partner & I are probably fairly desirable tenants: Late 20s couple, both in good jobs with rent around 20% of income. I'd run a mile if any landlord asked to see my bank statements or experian reports (and no there is nothing to hide in there).
                        What paper? Good luck finding a property then from a sensible landlord who cares not a jot about your cash flow while gaily handing over his half million pound asset to an unknown entity.

                        Comment


                          #13
                          It is not that long ago that someone on this forum was advocating giving a prospective tenant a bear hug (accompanied by deep sniff) to ascertain whether or not their claim to be a non-smoker is the truth.

                          jpkeates, I'll be with you in the skip.
                          '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

                          Comment


                            #14
                            The value of tenant checks...

                            Property is vacant again, advertised and have a queue of people wanting to see it.. 2 couples are really keen to get in, and gave all the right answers in conversation so asked them to go through tenant checks (we are using NLA full tenant check).. one couple has filled it all out very quickly, and rapidly it came back with lots of red flags (no history for him, not registered and any of their previous addresses they gave, 4 active CCJs totaling nearly £4k of debt).. asked them about the CCJ's and they have now withdrawn their interest as we are asking too many questions, apparently most other private lets are much more straightforward.. Saves me telling them we are not interested!!
                            Other couple are yet to fill out the check forms (sent late last night and they are both at work) so will see what they throw up.. In the meantime we have booked another 5 viewings!

                            This is just north of Bristol in the uk, 3 bed semi. amazed at how much interest there is!!

                            Comment


                              #15
                              Me too! You sure you have the rent high enough?

                              Comment

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