Credit checks and references

[Antnkel]

Hi guys,

I'm just wondering what to look out for/ be aware of when looking at credit reports, how a pass or fail is shown? Never seen any before so just want a bit of advise.

Thanks.

Anthony.

[Richlist]

Won't your rent guarantee insurers deal with all that for you ? Or are you planning to go commando and have no insurance ?

[Antnkel]

I'm going through a local estate agent and just want to look at the checks. I've been told they've passed but don't really know what I'm looking at.

[Richlist]

So you aren't going to follow the recommendation to take rent guaranntee insurance ?

Good luck, you might need it..

[Antnkel]

No never said that. Not asked about it yet, just want to make sure the tenants are suitable first.

Will be looking at the rent guarantee insurance when I'm happy with them.

Anyway back to my original question, any tips!

[Melboy]

When you look at the EA's credit check report won't you be able to make an informed decision once you have viewed it?

Not possible to comment really until you do this and of course what you are looking for is a record of CCJ's and any information that will stop you from taking on these people as prospective tenants.

[Mortitia]

Yes do look for CCJ's and do not take a tenant with them. On some of the checking companies they offer a recommendation such as ' we suggest you use a guarantor' - and that time I wish I had as it ended up 18 months later in eviction but I did get all the rent back.

I pay a lot of attention to the employment of the tenants - after all not job, no wages, no rent. Often I follow up the tenants employer if the agent has not done this and even check out the company to see if it exists, what they do - are they registered at companies house etc. You can do all this yourself for free. Relying on an agent is never totally satisfactory - self reliance is the way forwards.

See if you can get a previous landlord reference or even one before that - ask the tenant to get this themselves - I would not trust and agent to do this as they are making money from the tenant as well as you.

I don't buy rent guarantee insurance.

[Mortitia]

...............and another thing Ant don't accept tenants who are self employed - if they are that good they won't be renting.

There seem to be no end of under 45's out there who think 'I work in IT self employed' or ' I'm a web designer' (they nearly always turn out to be self employed) will get them a tenancy. Don't go there.

Tell the agent the profiles you want - don't let him tell you.

In your situation I would be looking for 2 full time working adults who have been in proper check-upable jobs for at least 1 year without CCJ's and debt. They will either be new to renting (so get a guarantor) or with a landlord reference or one you can check up on.

[Antnkel]

Thanks for the responses, looked at the credit checks and all looks good. No ccj's, employment checked out and no pets. They are also already with my agent but house being sold so need another one.

[Grampa]

Some agents or landlords have a strict criteria defining a pass or fail and this can vary from landlord to landlord or agent to agent.

We don’t have a pass or fail and judge each application on its own merits. We then weed out the tenants we defiantly don’t want (as we will have to deal with any problems) and then recommend to the landlord who we think we be suitable and if they are borderline let the landlord have the final say.

We also have long term landlords who don’t want to get involved and just let us decide.