Credit check for new tenant

[nemobell]

We are about to let our house through an agency while we work abroad. We have a prospective tentant who wants to move in. However, he has offered to pay 6 months rent up front because he knows he will not pass the letting agencies credit check. We are torn between accepting his offer, after all we need a tenant and people make mistakes - or rejecting it as we have no proof of his background. What do ther ABers think - are we being paranoid?

[Velvetee]

You never can be sure. I had tenants who passed their credit check, but in the last 3 months of their tenancy, they refused to pay me the rent. Fortunately, I was able to retain some of their deposit to cover this.

Since they left, I've found they hadn't paid any bills and there are a number of bailiffs after them for unpaid debts, so my new tenant has debt collectors turning up every so often.

If I were you, I would still have him checked out, you never know what he could be hiding. Maybe, like my tenants, he moves from property to property to run up loans and credit and then moves on, evading the debt collectors.

[nemobell]

Thanks Vevetee for the advice, I think you are right, best to err on the side of caution. Especially as we won't be in the country if things go bad and we don't want our address blacklisted.

[~max~]

If he offered 6 months in advance and doesn't look too "suspicious" (ie: huge BMW, expensive suits...), I'd go for it. It's extremely difficult to find someone who will rent to you if you have no / a bad credit record. I, for example, have always paid my rent on time, always paid my bills, but since I don't have a CC and am not registered to vote, I'd never pass a credit check.

In the end, go with your instinct, I guess!

[joggerjayne]

Hi Max.

You coming over to CB later?

j x

[Twenty20]

Have you asked him why he wont pass the credit check? Does he have CCJ's against his name? If so, are they satisfied i.e. has he repaid the debts? If he has enough money to pay 6 months rent up front (plus a deposit on top of that in addition to what the agency will charge him) I'd be asking him why he wont pass a credit check.

With the way things are in the property market at the moment you shouldnt be short of prospective tenants. Why take a chance on someone with a bad record? I know that any tenant can turn bad but there seems an increased chance if you go with someone who already has a poor credit record.

If you do go with him, make sure the money is fully cleared in your account before you let him move in. And still take a deposit too.

[Meg888]

A few yrs ago I was self-employed, some guys I'd worked for stung me for quite a large sum of money, leading me into all sorts of bother with my creditors. I would not pass a credit check, but I have always paid my mortgage and my rent prior to buying (even during those tough times, I prioritised it). I am considering selling up and renting, and would have to do a similar thing to your potential tenant, this I would do with the equity from the sale of my house. So not everyone who has a bad credit rating is necessarily a criminal. Take the 6 mths rent and hold it as a bond, and ensure he still pays his rent each month from the start of the tenancy. Like Twenty20 said, ask him why he wont pass, and maybe get him to provide you with a copy of his credit report and then you can see what the current situ is like.