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