to ask if anybody is knowledgeable on tenant reference checks?

[doubleshotespresso]

Posting here as I thought there would be more traffic

If prospective tenants have some debt, a default on a credit card, a payday loan all with payment arrangements in place would they pass estate agent credit referencing checks?

They have no CCJ'S or bankruptcy...

I would be very grateful if anybody could give me some honest answers please...

I have defaults but have payment arrangements In place and I passed fine

mermaid thank-you...

bump

Any advice greatly appreciated , I need to make a speedy decision based on these new tenants passing...... Would be great to hear from anybody in the know

Are you using an agency?
What is your main concern? Slight debt shouldn't be an issue bankruptcy or ccjs would be tho

The tenants are my niece and her partner.

They have requested i lend them the best part of £4k as a deposit, a significant sumo which appears to be non- refundable if they fail

I really want to assist but am weary if they fail I will be in a weak position

sorry - 4K? non-refundable if they fail? that does not sound right at all!

you need to ask more questions ASAP. there is no way tenancy checks are 4k.

I have debt, loans (up to date with payments), and have had payday loans recently. No defaults, no IVA, no CCJs.

Just passed referencing no problem. I earn 4 x monthly (yearly?) rent.

4K non-refundable deposit sounds dodgy. The only thin non-refundable for us was the fees (a still extortionate £550, this wasn't in London either)

Non refundable deposit? No way. I'd be a wee bit suspicious that they either didn't understand or were trying it on.

Hell no! Not unless you can afford to lose it.

No way would such a deposit be non-refundable!
I do tenant credit checks - pay NLA £25 a time. A bit of debt is fine - Im mainly looking for proof that they are who they say they are. However almost all tenants 'fail' to pass at the level where I could get payment protection insurance, simply because they arent earning 'enough' - drspite being easily able to pay the rent. So I accept tenants I've met who seem legit if the check says "Acceptable with guarantor", but other landlords might just take that as a fail and not rent to them.

Ok thank-you all so much, it is years since we have done anything like this so feel very out of my depth here.

The 4k represents referencing fees, 1 month up front and 6 weeks deposit. There has already been £400 holding deposit put down and figures/moving in date agreed.

It appears I would lose the holding deposit and the 6 weeks which is a shedload of money if they do fail....

Gosh I am very torn on this, they have been very open with me as to the extent of their debt but a little more vague when it comes to quite what arrangements they currently have in place. I suspect they possibly missed some payments which I am worried would sit badly with these checks.

I should add it appears to be a reasonably well-known nationwide estate agent (so as reputable as they can be I guess?), is all this standard practice these days?

Erm, the 6 weeks deposit should be refundable. If you or they are being told it's not, it's untrue.

It's the deposit that most tenants have to pay, and legally needs to be put into one of the 3 deposit protection schemes. This is then returned at the end of the tenancy, minus any deductions for damages or cleaning.

Google the Shelter website for more information.

The holding deposit however, will be non-refundable.

I wouldn't! 4k is a shed load to fork out when youre questionning it. Why is it so expensive? Thats 8 months rent for me

They wouldn't get a bank loan with that credit history. Don't think you should do it either.

I used to run these reference checks, no ccjs etc = you will be fine.

Iwantabluebanana it is in a reasonable but not swish area of south London in a school catchment area and this appears to be the market rate.
Motoko I have requested to see the paperwork and niece is bringing it around after work later. This is the bit which has made my gut kick in and me wobble a bit before I get into transferring any funds... I am not rich enough to gamble this kind of money, it all seems such an obstacle course and I am baffled as to whether or not they will pass.

Nancy that is encouraging thank-you.

Groupie I read your post and heard my mother's voice as I read it thank-you

Thank-you everybody

I have just taken on a new tenancy, I paid for a referencing check (about £350) I would have lost that money had I failed the check but I didn't pay any deposit, one month's advance rental etc until the day I signed for my tenancy.

I would be a bit wary letting your property to relatives op?
Supposing they default on the rent? How would you feel about evicting family members?

No I am not letting my property!

They have found their own rental property via an agent, they just need help getting the £4k together to secure the deal. Sorry if this was unclear.

If they can't afford the first month's rent then how will they afford it going forward. Please don't say you are going to guarantee their rent too!

The 6 weeks deposit should be protected and returned to you once the property has been vacated in a suitable fashion.

Agents round here don't charge holding deposits, but I suppose London is different. One months rent upfront is normal. The referencing fees themselves would be non-refundable.

Can they afford the rent once they are in there or are they expecting you to be guarantor for it? and therefore liable if they don't pay?

Between them they can comfortably meet the rent yes...

The big obstacle in the absence of any savings is the big figure to put down to secure the property.

I have already very clearly stated I would be unable to act as a guarantor. to them.....