Wwyd - evicting tenant?

[DexyMidnight]

Canvassing opinions. Took on self employed tenants in March. They were ideal and seemed mature, responsible, sensible etc. They did however fail their credit check due to their irregular earnings and fact that they didn't have the requisite 3 years' statements. They were keen to proceed and we agreed, with a 3 month deposit.

I am thinking ahead here to March. Obviously we must refund their excess deposit under the new legislation - we have until next summer to do this. My intention was to deal with it in March when the tenancy ends or renews.

At the 6 month check up recently the tenants asked what our intentions are for next year, they're keen to stay etc. The property is in fair condition and they have paid their rent on time with one minor exception which they (i think honestly) blamed on the bank holiday.

Obviously by March next year one or both of them could be employed ft in a job earning £50k p.a. and easily pass a new credit check, their business could have taken them overseas - who knows. As I said I'm just thinking ahead and canvassing opinion.

Assuming no change and they fail the credit check again next year (ie no rent guarantee insurance)... Wwyd? Give them notice and look for a new tenant who would pass the credit check?

I self manage so no agents fees for finding a new tenant etc and I'm confident the house would relet quickly as it's in catchment for the grammar schools and the primaries are decent.

Oh p.s. Guarantor a no go - their families are in the US and I'm not interested in trying to enforce a guarantee in a foreign jurisdiction

Oh christ sorry meant this for property

If they have paid their rent on time why do you need a new credit check? We rent and do have a new credit check at the end of a period of tenancy. They just ask if we want to stay. We say yes and sign a new paper to say it's extended by x amount of time

That meant to say do not have a new credit check

I'm not sure why you wouldn't continue with them, if they have been good tenants?

See if they carry on paying their rent on time and reevaluate after Christmas. A credit check is only a snapshot and a years worth of rent payments would matter more to me.

Sorry dont understand the question? Why you giving them notice?

So they pay rent on time.
They may have a bad credit report due to being self employed
You have had no problems and you want to evict them.... Why?

If I understand this correctly (they failed their credit check but have been good tenants and paid rent on time other than one genuine error and property is in good condition) then I think you would be harsh to kick them out if they failed the credit check again. Nothing has changed other than you now know they are good tenants so unless something has massively changed for you (eg your employment has changed and it would really screw you over to have one late month) I would keep them.

You can have people who passed a credit check but were difficult tenants e.g. complaining about everything, noisy, didn't look after the property etc so I think if its going well, dont spoil it

Return the excess deposit and ask for 3 months rent in advance instead? Not sure if that's allowed.

They are looking after the house and they are paying the rent. The chances are that they will continue to do so. If you were to get new tenants they could turn out to be nightmares.

You don't need to renew the tenancy - just let it become a rolling 'periodic' tenancy. That will make eviction easier should they suddenly stop paying (as Section 21 evictions haven't been done away with yet). I really can't understand your thinking here.

NottaLotta - not that isn't allowed.

I really don't understand what you're talking about. They've already failed a credit check and you allowed them to move in anyway. They've always paid their rent so why are you waffling now?

I'm at a loss to understand why you want to evict them.

What thecatneuterer said in bucket loads.

If you have good tenants, hold on to them.

My tenants also failed their credit check. They offered to go on a 6 month tenancy, paying the 6 months rent in advance. It has worked well under this arrangement for 2 years.

I didn't think you could evict tenants now on a whim?

@DexyMidnight

Oh christ sorry meant this for property

Moved, OP.

Does the failed credit check affect your insurance? That's the only reason I could see for evicting them. But if they pay their rent every month you might as well keep them until they voluntarily leave - good tenants are good tenants and having insurance is pointless if they are going to pay every month anyway.

Dobinette - there have been test cases where it was deemed that paying many months rent in advance was equivalent to paying a deposit and was therefore not lawful.

Iwantacookie - Section 21 evictions are still lawful, although there are proposals to do away with them. Using Section 21 a tenant can be evicted with two months notice once the initial term of their contract has ended. (Although of course if they choose not to leave then the actual eviction can take 6 to 8 months and involve court and bailiffs).

I am renting my house atm. Honestly if you want to keep renting your house out and they've proved they can pay the rent on time (and aren't trashing the place) I don't see why a credit check would remotely factor into things a year down the line. Sounds like they've jumped through tons of hoops for you already.

Meant to add: Why would you even do another credit check next year??? This is not normal for landlords.

I don't understand why they need another credit check. We have only ever had a credit check at the start of a tenancy, not during.

I'm pretty sure that would count as an illegal evection.

@cupboardwithashelf You are completely wrong. A Section 21 notice can be given at the end of the initial term with two months notice.