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Original poster

Teanants failed referencing…

47 replies

Doopersuper · 19/06/2023 10:56

Hi. I know Landlords are all viewed here as pantomime villains but I’m hoping for some advice / just have a few people to talk it through with. We’re letting out a property that pre Covid we used as a crash pad for working in a city but now don’t use. Before anyone jumps on - yes, I’ve let properties before (though a good few years ago) and I absolutely make sure the property is in a state that I’d be very happy to live in too! Young couple have applied to rent it but one of them has received a reference of ‘not acceptable’. They weren’t aware of a problem and say that the debt was cleared a long time ago. They have a good job & income and a reference from their previous LL saying they were great. I really feel for young people starting out in this currently brutal rental market (most of us have been there at some point!) so really want to give them the benefit of the doubt…maybe with a guarantor? Or should I be ruthless and say no in the knowledge there are huge numbers of prospective tenants out there….

OP posts:
Original poster
Doopersuper · 19/06/2023 10:56

Tenant not teanant🙄🙈

OP posts:
KievLoverTwo · 19/06/2023 11:03

Doopersuper · 19/06/2023 10:56

Hi. I know Landlords are all viewed here as pantomime villains but I’m hoping for some advice / just have a few people to talk it through with. We’re letting out a property that pre Covid we used as a crash pad for working in a city but now don’t use. Before anyone jumps on - yes, I’ve let properties before (though a good few years ago) and I absolutely make sure the property is in a state that I’d be very happy to live in too! Young couple have applied to rent it but one of them has received a reference of ‘not acceptable’. They weren’t aware of a problem and say that the debt was cleared a long time ago. They have a good job & income and a reference from their previous LL saying they were great. I really feel for young people starting out in this currently brutal rental market (most of us have been there at some point!) so really want to give them the benefit of the doubt…maybe with a guarantor? Or should I be ruthless and say no in the knowledge there are huge numbers of prospective tenants out there….

Do you have LL insurance that requires both parties pass credit checks?

If so, could you lease to the one who passed and the other can be added as a 'permitted occupier' instead of on the lease?

Original poster
Doopersuper · 19/06/2023 11:17

Ironically it’s the lower earner who passed the referencing, but they wouldn’t pass if they were solely responsible for the full rent. I believe ‘some’ insurance companies will still cover with a guarantor but I lose out on the ‘guarantees’ that would have come free via the referencing agency… and it’s all more risky which none of us really ever want, particularly at the moment!

OP posts:
TonysGaff · 19/06/2023 11:30

How much of the rent can the person on the lower income afford according to the credit check?

One of my DC is having this issue because they have a job with a base salary but scheduled overtime/antisocial hours written into their contract. Letting agents will only consider the base salary as income. The base salary isn't enough to rent anything in the area.

One of the solutions suggested was that the difference between the amount they can "afford" and the rent for the length of the AST could be paid up front. I suspect that may not be acceptable for some mortgage lenders/insurance policies.

2bazookas · 19/06/2023 12:06

Young couple have applied to rent it but one of them has received a reference of ‘not acceptable’. They weren’t aware of a problem and say that the debt was cleared a long time ago. They have a good job & income and a reference from their previous LL saying they were great.

From experience (with prospective tenants) I advise you to check out in person, by phone, the referee who said "not acceptable". I also always contacted every glowing reference and spoke to them in person. Several of them had NOT given ; one descibed as the applicants current boss had never met or employed her. One turned out to be the applicants brother.

False references are appallingly common. Never, ever accept a tenant who lied on their application or fudged any queries.

"I'm not aware of any problem, the debt was cleared long ago" contains an obvious contradiction.

Tenant knows the problem was unpaid rent or bills.

drpet49 · 19/06/2023 12:09

2bazookas · 19/06/2023 12:06

Young couple have applied to rent it but one of them has received a reference of ‘not acceptable’. They weren’t aware of a problem and say that the debt was cleared a long time ago. They have a good job & income and a reference from their previous LL saying they were great.

From experience (with prospective tenants) I advise you to check out in person, by phone, the referee who said "not acceptable". I also always contacted every glowing reference and spoke to them in person. Several of them had NOT given ; one descibed as the applicants current boss had never met or employed her. One turned out to be the applicants brother.

False references are appallingly common. Never, ever accept a tenant who lied on their application or fudged any queries.

"I'm not aware of any problem, the debt was cleared long ago" contains an obvious contradiction.

Tenant knows the problem was unpaid rent or bills.

This. I wouldn’t touch them with a bargepole.

watermeloncougar · 19/06/2023 12:13

Exactly what @2bazookas says.
There clearly was a problem... a debt which has now been paid. In the future that could be a debt owed to you. It might be failing to pay rent on time for months.

I feel sorry for young people in the current housing situation but in your shoes I'd absolutely go with tenants who both pass credit checks and both have genuine, good references. Do your own digging as well to check that references are genuine.

unfortunateevents · 19/06/2023 12:16

What was the debt for? There could be a huge difference between, for example, missing rental payments on a previous flat or missing a phone bill because they moved and forgot to update their address?

mrstiggytinkle · 19/06/2023 12:23

You can pm me if you want. I have had years of living hell due to this. I'm no longer a landlord (was an accidental one) but rented to a respectable.

Middle aged lovely couple, one of whom failed, and I ignored it. It did fall to the other one but that made difference as both totally scammed me. If I told you the whole story you would not believe it. I didn't have a guarantor but I now know where used her mum and sister in the past and dragged them into her sorry state of affairs.

Also forged references. They seemed totally normal. And now I know have had multiple evictions.

Just no.

mrstiggytinkle · 19/06/2023 12:24

Sorry for random sentence endings, sun is in my eyes!

VanCleefArpels · 19/06/2023 12:24

Double check your insurance terms.

You could:
Ask for a UK based home owning guarantor. Credit check the guarantor .
Get evidence of income and an employer reference.
Ask for rent up front.

Personally I never take a tenant that fails a credit check - it’s just not worth the risk when there’s 10 other better candidates queuing up to rent.

mrstiggytinkle · 19/06/2023 12:25

She had a court order for debt which my letting agent sort of persuaded me would be ok as it was small and that he would be responsible if things went wrong.

They did. Very.

mrstiggytinkle · 19/06/2023 12:26

watermeloncougar · 19/06/2023 12:13

Exactly what @2bazookas says.
There clearly was a problem... a debt which has now been paid. In the future that could be a debt owed to you. It might be failing to pay rent on time for months.

I feel sorry for young people in the current housing situation but in your shoes I'd absolutely go with tenants who both pass credit checks and both have genuine, good references. Do your own digging as well to check that references are genuine.

This

Original poster
Doopersuper · 19/06/2023 12:34

Thanks all - you’re confirming what I was thinking. It’s 2 ccjs …… one could be explained but 2 seems careless!!…though both have been satisfied so they’ve at least done that…I’m going back to ask for more info plus potential UK guarantor but my head is very much saying I should stick it back on the market. They seemed absolutely perfect otherwise. I used to rent out almost exclusively to solicitors/lawyers (I had brilliant contacts in that area) because ccjs etc can seriously affect their careers….shame I can’t do the same now😆

OP posts:
2bazookas · 19/06/2023 12:51

I’m going back to ask for more info plus potential UK guarantor

More fool you.
There are plenty of excellent faultless tenants out there who are a pleasure to deal with.

They seemed absolutely perfect otherwise.
Of course they did. A convincing charming liar conman always does.

SweetPetrichor · 19/06/2023 13:02

Run a mile. We rented to a lady who seemed to be trying to put her life back on track, had a CCJ, full time job, guarantor…she paid the first months rent then never a penny more. Got sacked from her job pretty much immediately. Chasing money from the guarantor was a bastard of a thing. Never, ever again. It’s not worth it. There’s plenty people out there who will be good tenants. Never let feelings come into it!

maddiemookins16mum · 19/06/2023 13:23

One CCJ at a push, Two - no way Pedro.

nocoolnamesleft · 19/06/2023 13:25

I was once told I had failed a check for renting. They said it was because I wasn't registered to vote, and only had guaranteed employment for the next 6 months. I sent them 1)my polling card from the previous week, and 2)evidence I had guaranteed employment for at east the next 3 years. And suggested they found a more competent company to check these things.

unfortunateevents · 19/06/2023 13:29

nocoolnamesleft · 19/06/2023 13:25

I was once told I had failed a check for renting. They said it was because I wasn't registered to vote, and only had guaranteed employment for the next 6 months. I sent them 1)my polling card from the previous week, and 2)evidence I had guaranteed employment for at east the next 3 years. And suggested they found a more competent company to check these things.

That's a different situation though? These tenants don't seem to be suggesting that there is an error in stating that they have two CCJs against one of them.

Bluebells1970 · 19/06/2023 13:35

Hmm, is it really worth the risk?

CottagePieLaLaLa · 19/06/2023 13:36

Sign up for the https://www.nrla.org.uk/ - they are fantastic support and can answer most questions as well as provide plenty of document templates. Whenever I have a question I speak to the NRLA and then my LL insurance. Unless they are both happy with a 'plan' I have, I don't go for it. The horror stories you hear of tenants not paying rent, or destroying properties, or running businesses from properties without the correct paperwork, are far too common. And these end up costing (tens of) thousands of pounds to the landlords. As for those applicants, I wouldn't touch them with a bargepole either.

NRLA - The Home For Landlords

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littlebopeep1991 · 19/06/2023 13:40

You sound like you're in a very similar situation to I was recently. A couple applied where I was doing the applications myself for the first time rather than through an agent. I asked for details about the debt and I wanted evidence of it being paid off regularly and also asked for a guarantor and has references from multiple previous landlords. I actually had a check of any public social media and they had posts about doing gardening etc so felt that I had a good job of the property being well looked after.

The way I view it is no one is perfect and anyone can suddenly stop paying rent. I would consider how safe you think their job is and do a guarantor.

FairyDustAndUnicorns · 19/06/2023 13:42

I wouldn't rent to them. CCJ isn't just debt. Its debt they've made no effort to repay and had to be chased through the courts for.

EllaRaines · 19/06/2023 13:47

Do not accept them. There will be plenty of others who meet all the requirements.

NeverendingCircus · 19/06/2023 13:48

Can you ask for several months rent in advance? Both my DC shared with foreign students and landlords expected them to pay 6 months in advance so they didn't run home abroad and leave without paying. Can you ask for 3-6 months in advance plus a month's deposit, so if they are late you have time to give them notice and get new people in.