Accept Tenant with CCJ & Guarantor or not..

BitterAndTwisted

This is all very fascinating Pitkin2020 but this thread is about a landlord trying to make a decision about whether to rent to another tenant, not to you. I'm not particularly interested in your credit-history or financial circumstances and doubt most other posters are either.

Jowo_2

pitkin2020 wrote: »

The credit scoring system only looks at the paper trail and not the person im sure if the landlord were to meet the people they would be able to judge their character and decide from there.

A professional tenant - i.e. one who seeks tenancies without the intention to pay on a serial basis, a can pay/can't pay basis, always appears plausible - that's how they hope to dupe a landlord.

Someone who knows their credit record is poor and has CCJs will know they need to come up with a convincing defence of why its not their fault in order to gain a tenancy....It could be true, then again they may have just invented it to influence the decision.

That's why some landlords have a criteria why they exclude people without CCJs - they don't fancy sifting through sob stories that can't be verified, they don't want to be influenced by the enthusiasm of the tenant for the tenancy which could be matched by equal enthusiasm not to pay or facility for coming up with excuses for rent arrears during it.

By setting a criteria to exclude those with CCJs on principle because they feel it does demonstate the character of the tenant - their poor behaviour to living within their means and dealing with debt - people who have been given a chance to resolve the issue but don't. A landlord doesn't want to have a groundhog day with this person by exposing themselves to the higher risk of arrears.

Tenant screening is not fallible but it is estimated to reduce the risk to the landlord of having a dodgy tenant by up to 90%.

pitkin2020

BitterAndTwisted wrote: »

This is all very fascinating Pitkin2020 but this thread is about a landlord trying to make a decision about whether to rent to another tenant, not to you. I'm not particularly interested in your credit-history or financial circumstances and doubt most other posters are either.

I dont care if your interested or not my reply was in defense to another posters assumptions and it goes to show that CCJs are always as clear cut as you all seem to believe. A CCJ can be brought against anyone, you could bring one against your next door neightbour if you like even if you knew they moved out 6 months ago!!

As for the credit scoring system you can still get a low score when you have no debts and a lot of savings.
A credit check wont tell you if your tenant is going to pay the rent month in month out regardless of what it shows. If you are unsure ask for 6 months rent advance your covered then for atleast 6 months should then tenant then default.

N79

pitkin2020 wrote: »

In the current climate everyone is a risk but someone with a CCJ who is being backed is no more risk than someone without a CCJ.
The credit scoring system only looks at the paper trail and not the person im sure if the landlord were to meet the people they would be able to judge their character and decide from there.
You can also get a low credit score and be classed as a risk when you have no debts and have over 25k of savings!! work that one out!!

You have far more faith in my ability to judge character and predict a person's future behavour from a short meeting than I have!

Besides, I rather suspect that my Ts would be unwilling to pay my fees if they want to meet me before renting one of my properties.

The only vaguely reliable indicator of how a person will act in the future is how they have acted in the past. That is indicated by the paper trail (and not by some magic number credit score - you seem to have confused the meaningless numbers (scores) produced by some credit agencies with the credit checking that LLs carry out).

Finally, if you receive a CCJ when you were not aware of the case then it is simplicity itself to get the CCJ removed. You pop along to your local court, swear a statutory declaration in front of a judge along with details of why you did not respond to the court and then apply to have the judgement set aside.

Tuscan

well my take on this is..

i have adverse credit and its all my fault, got into trouble 5yrs ago and took the steps to sort it out before it got out of control, made a payment plan with all my creditors via the CCCS and all excepted bar one who went after a charge on my house, outcome they didnt get it but i got a CCJ which along with all the debts i am paying off and have paper work to show this. next yera we are selling our house and settling all debts in full as have a very large equity, will have a large amount over (around 80k) after clearing the debts but may have to rent for a few years until the credit score looks better and we can buy again.

we have never missed a payment on our mortgage in over 10yrs or the debt payment plan and can prove this. I have a limited company with many years of accounts and have a good income, wife works and also earns well. we have a young daughter..

i will be being 100 percent up front with the LL and will be offering 6 months+ in advance plus deposit plus bank statements if required..

would you except me?

pitkin2020

Tuscan wrote: »

well my take on this is..

i have adverse credit and its all my fault, got into trouble 5yrs ago and took the steps to sort it out before it got out of control, made a payment plan with all my creditors via the CCCS and all excepted bar one who went after a charge on my house, outcome they didnt get it but i got a CCJ which along with all the debts i am paying off and have paper work to show this. next yera we are selling our house and settling all debts in full as have a very large equity, will have a large amount over (around 80k) after clearing the debts but may have to rent for a few years until the credit score looks better and we can buy again.

we have never missed a payment on our mortgage in over 10yrs or the debt payment plan and can prove this. I have a limited company with many years of accounts and have a good income, wife works and also earns well. we have a young daughter..

i will be being 100 percent up front with the LL and will be offering 6 months+ in advance plus deposit plus bank statements if required..

would you except me?

NO as you have a CCJ will be the answer from some. Therefore they would rather taken a person without a CCJ who could end up going down the same path as you did a few years ago.

Place_of_Design

everyone can end up on this path. If you lost yorr job today, and spent 4 months finding a new job.. what would happen to your finaces


Whist some have savings, if you loose your job, and you are on the breadline, you might be managing your finances 100% today, but tommorow???

Personally as a couple, between us we have had everything thrown at us in the last 10 years. Divorce, relationship splt up and a house taking ages to sell, redundancy, bad health, RTA's

Each one of those things was enough to totally screw up a families finances. it happens. in the real world

Tuscan

Place_of_Design wrote: »

everyone can end up on this path. If you lost yorr job today, and spent 4 months finding a new job.. what would happen to your finaces


Whist some have savings, if you loose your job, and you are on the breadline, you might be managing your finances 100% today, but tommorow???

Personally as a couple, between us we have had everything thrown at us in the last 10 years. Divorce, relationship splt up and a house taking ages to sell, redundancy, bad health, RTA's

Each one of those things was enough to totally screw up a families finances. it happens. in the real world

That is so very true, i think some one that has been down this road and has demonstrated that they handled it correctly and paid there dew's and didnt bury there head, and has come out the other side and has clearly shown there ability to pay in full for the whole term of the tenancy, is not a big risk..

Place_of_Design

Tuscan wrote: »

That is so very true, i think some one that has been down this road and has demonstrated that they handled it correctly and paid there dew's and didnt bury there head, and has come out the other side and has clearly shown there ability to pay in full for the whole term of the tenancy, is not a big risk..

yep, that applies when the person has recovered. Unfortunatally today, with negative equity, twitchy banks, and a poor outlook, higher costs and fewer prospects.. recovering from such events can be a case of just being lucky. For the unlucky, in a period of a few months, what was rosy can turn into what is possibly years of trying to get sorted and rooted again. Exactly at this moment in time is when they cant egt a mortgage, rent a house etc..

nollag2006

I would run a mile from a tenant with any sniff of a CCJ, it's just too much of a risk.

Trying to pursue the guarantor will also be a nightmare.

If you do decide to take this tenant on, get at least three months rent up front and a three month deposit to cover yourself.