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Our current tenants are due to end their term at the end of the year. We've found someone keen to take the place, and they've already paid the deposit without fuss (confirmed today, paid today..)
I was wondering what the 'private landlords' amongst us use to perform reference/credit checks?
I suppose the options are
- perform the checks myself - online credit check type thing?
- pay an online agent to do them all.
- pay a local letting agent to do them all.
I was looking for advice from people as to how they go about this, and what option they chose and why.
I appreciate the options range from cheapest to priciest, and I imagine the 'security' offered increases in line also (right??)
Thus far the new tenant has emailed copies of payslips (which confirms the money [b]should[/b] easily be available to them, and I have the HR number at work that could confirm employment terms), and they will be giving me details of their current letting agent, so I've a few bits of data to hand.
Advice and opinion welcome, as always!
DrP
Not done ourselves but the check showed up a past credit issue with one tenant, was not enough to be a real issue but glad we knew. As far as references go anything can just be a mate on the end of a phone so not the best thing to rely on if they are provided voluntarily.
DrP - I'll be in the same boat in a few weeks & am planning on paying [url= http://www.experian.co.uk/background-checking/tenant-check.html ]Experian[/url] or whoever to get a credit check for any new tenants then get payslips, employer contact & previous landlord though as mikewsmith says they could give you anyone's phone number.
Seems to me that if you get an agent to do it they'll just add their fee on top of the price, take longer over it and screw it up somewhere along the line.
BTW, where did you find the tenants? Not advertised mine yet as I need to do a bit of work after the current lot leave - they've been there 8 years so I can't grumble!
I wouldn't bother wasting your money if you've seen pay slips.
If they aren't going to pay you, then they aren't going to pay you, regardless of whether you've done a credit check or not.
If they seem decent (have to use your own judgement here) and have shown they earn enough to pay, that was always good enough for me and I never had an issue (until one tenant was made redundant) but that was all resolved with housing benefit being paid direct from the council.
The only reason for the credit check is to find out if they are likely to be handing over most of their cash to bailiffs. One of ours owed £40k to various places who were after them. Credit check would have shown that. They paid no bills for 9 months
It depends what more important.
Cash or your time and patience.
An agent gets the neck ache but charges a fee. That said we were sent a copy of a letter which was sent to a tenant noting the dirty state of the cooker! The tenant in question is a consultant doctor.
You can put whatever checks in place but I've learnt never to be surprised by what people can do or say.
You can put whatever checks in place but I've learnt never to be surprised by what people can do or say.
2nd that!
Our rental place has had 3 tenants - all subject to reference checks by the letting agent.
1st set - fine, though they left in a hurry and we've given up now spending any more time advising debt collection agencies that they left x years ago.
2nd set - fine - until they split up - he stayed, went off the rails, worked late, brought all his mates home when he did, patties etc etc. House was alright but neighbours had a torrid time. Exhausted all the proper channels, eventually headed over there to tell him his would be leaving, by his own volition or on the end of a set of Bombers. He'd gone. In departing he'd cracked open an connection on the gas meter.... Fortunately I got the smell as soon as I opened the door = no lights switched on....
3rd. Current set. Polish couple. Very highly referred by the agent as they'd been long term tenants in another property that had been sold. Not a jot of bother in 4 years....
You can put whatever checks in place but I've learnt never to be surprised by what people can do or say.
A friend of mine's having a similar issue with his place.
Tenant passed the credit checks and references with no problems. Been in the place for a year but he's decided not to renew their tenancy. The tenants got to the day they were due to be out and sent him a text message telling him that they aren't moving out as they've nowhere to go and he'd have to evict them!
Kind of shows that the letting agents checks weren't worth the time and money to do!
Personally I'd go for payslips and bank statements - payslips aren't a lot of use if they're living beyond their means. We had some 'lovely girls' that Foxtons found, then proudly showed us their bank statements which showed they were both permanently overdrawn.....
Credit checks you can do yourself - will show up anything more fundamental.
References nice to have but the last landlord might give them a reasonable reference because they're keen to get rid of them....
Also circumstances can change, Mrs FF had a reliable tenant for several years, but in the economic downturn her tenant's BF lost his job and her hours were cut. A very drawn out and length eviction process later we got the flat back having lost £5k in rent, £1k eviction / court costs, £2k to redecorate / repair damage and it's now just been re-let......
All in all, a costly experience!
Use either maras or letsure, they are both proffesional and been in the business for years, I've used both proffesional
Y and personally.
Currently getting the ball rolling myself...
Have used [url=lettingref]www.lettingref.com[/url] for a credit check, still in process - £9.99
I've been advised to check bank statements too, so will consider broaching that.
I have current payslips, and old P60s.
Awaiting details of the current letting agent, to ensure property in good condition etc.
I'm doing what I reasonably can, but also accept that regardless of checks put in place humans can disappoint!
As for advertising - I did it all thorough [url= http://www.lettingaproperty.com/ ]lettingaproperty[/url] - you upload your own details/pics, and then it's posted on several high profile sites - I got the silver package on a special offer - about £60 or so...
DrP
Take out insurance against non paying tenants / eviction costs, a policy costs about £200 / year, but could save you £ks.
I'll look into whether our current policy allows that as an addition - alternatively, can you recommend a company?? I'm not too keen on losing £8k in rent/repairs either....
DrP
A guarantor worked for us when our 'supposedly' credit checked tenant did a runner without paying the rent. It was his mother who was less keen on an appointment at the local magistrate's court than he was! We relied on the agent to credit check him - all was fine. He had no job, abused neighbours, brought in a burd to live there and ending up doing 8 years at HM pleasure. I'm still not sure who was scummier, him or the agent...