credit checks on tenants wanting to let a property?
i have recently shown interest in a property and have paid an agency fee off 250 to let this property they have said that it is subject to credit checks and references being taken, i have been told that most agents don't even bother to do these credit checks just send out the references, is this true?? have any one ever heard of a tenancy being turned down due to these credit checks?? are there ways around it tho?? if they do say your checks were not good enough will they give you more options?
Public Comments
- Yes, I turned one down yesterday! She didn't ear enough - so her boyfriend is going on the tenancy with her to make up the difference. We check EVERY tenant.
- yeah they can let you down so find second person who you can make an assurety as second just incase you cant pay rent in time see iots the world
- if they are not actually running your credit or checking your references, than they are in breach of the contract with the landlords that list with them. any agency that is not doing this is setting themselves up for litigation in the future. and yes, people can be easily turned down for having bad credit. the credit check is a predictor of credit worthiness. i wouldnt want to lend to someone that has collections all over their accounts delinquencies. there is a very good chance that they will not pay you either.
- worst comes to worst you will need a Garantoor who will agree to pay for the rent if you dont. Thats what happened my end. The garantor then has to go through checks.
- Yes they do, if you fail it, either because of not earning enough or because of bad credit, u can get a guarantor (parent), or a 2nd person to move in with.
- my partner and i were turned down due to bad credit. my partner is an estate agent and has turned down many people with bad credit also. best thing to do is be honest!, arrange a guarantor (24+yrs old,homeowner,good credit) then if they are unsatisfied with you credit history you can offer them security. good luck!!!!
- Going from experience in London, all the letting agents do a full reference and credit check, there is no way around it. If an agent fails to do them then he will break the contract set out in the Term's & Condition's between themselves and the landlord. If they don't fully reference and the tenant defaults on the rent or is proven a liability to the landlord and the property then they can be fined, the landlord can claim compensation. The letting agent would lose clients. But do not worry to much about the credit check it is not the same as those done for loans or credit cards. They do not see your payment history or have any personal information disclosed. The agent instead is informed about CCJ's or long term defaults, not poor credit ratings. As long as you are clear of these you should pass the credit check, then the reference will rely on the wage to rental ratio and the character references. Normally people applying for a rental that accounts for more than 35-40% of their total annual income fail the reference. Please also keep in mind that failing a reference is not a black and white thing. There are various levels of passing and failing. There are other roads if the reference does not come back positive. If you have a family friend/friend who owns their own property in Britain they can act as a Guarantor, they will have to pass referencing but most Landlord's accept Guarantors as they are tied in to the agreement the same as the tenant in effectively the same fashion. There's the (in)famous advance on the rent, you can offer an advance of six months rent. This covers the AST (Assured Shorthold Tenancy Agreement) which is the standard agency tenancy agreement. As apart of the agreement the landlord has to provide residency for 6 months minimum, there is no way for them to evict or remove you for the first six months. If you fail the referencing it is common for people to offer the advance for 6 months with a 6 month break clause to cover the AST and reassure the landlord but this is an expensive option. Some landlord's have accepted a partial advance on the rent of between 2 and 4 months. I have only had this accepted a couple of times but it's always worth an ask. The only time I have ever seen an out and out no alternative fail on a reference (and I have let a lot of properties with various reference reports) is with CCJ's.
- for credit check on tenants try this http://www.simple2rent.co.uk
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