Accept Tenant with CCJ & Guarantor or not..

Jowo_2

nollag2006 wrote: »

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.

No, there are legal reasons which make it extremely risky for a landlord to take a deposit greater than 2 months so its the norm to front load the rent, not the deposit. I keep being told what this reason is that makes it a bad idea for a landlord to accept a large deposit but I keep forgetting it...

N79

Jowo wrote: »

No, there are legal reasons which make it extremely risky for a landlord to take a deposit greater than 2 months so its the norm to front load the rent, not the deposit. I keep being told what this reason is that makes it a bad idea for a landlord to accept a large deposit but I keep forgetting it...

Its because it is a premium (S15 4(c) of the housing act). Premiums are best avoided. See S115 of the housing act and the rent acts for some of the possible consequences.

mlz1413

BitterAndTwisted wrote: »

.I have a feeling that as you appear to have garnered such interest so quickly it would be worth your while hanging fire until you find a tenant or tenants who appear more reliable.

I agree with this.

Tell agent you are unhappy about CCJ & guarantor and want to check with the insurance that they would pay out if problems and that you would also prefer to market for at least 2 weeks and see who else is interested.

I am also amazed someone doesn't know they have a CCJ and I find that more worrying than them having it!

cakey

i wouldn't take anyone with a CCJ. had a tenant in my house stopped paying rent, took 6 months to get them out, that was with a guaruntor, after what it would work out to take them to court for the money i would still be out of pocket. its never worth the risk unless you can afford not to get the rent

Tuscan

how many LL's have had problems getting rent from tenants that seemed to be ideal? and pasted the credit checks.

bet you wish you had 6 months rent up front then...

Jowo_2

Tuscan wrote: »

how many LL's have had problems getting rent from tenants that seemed to be ideal? and pasted the credit checks.

bet you wish you had 6 months rent up front then...

Tenant verification isn't going to entirely eliminate the risk of ending up with a rogue tenant, but probably substantially reduces it by a large degree. Obviously its not going to be able to predict the small number of reliable tenants who experience issues behind their control that lead to future rent arrears, nor tenants that are really skilled at deceipt and successfully fake their employment and previous landlord references, for example.

It is, however, fairly strange to me that some tenants with CCJs think that if they have a good story to explain gaining it, they should have the opportunity to pitch a case to the landlord as to why they deserve the tenancy. Some landlords will not want to hear the tenants side of the story and will reject them, full stop. It is merely sufficient that they've been taken to court by a creditor and haven't subsequently satisfied the judgement.

The same tenant, turned down for a loan by a garage for a car for example, is quite likely to wind their neck in and not challenge the rejection, not rant at their entitlement to transport.

However, there seems to be an implied wish by some tenants with really cack credit scores that landlords show them great leniency and understanding for their circumstances. They'd be better off repairing their credit record or accepting that they must provide guarantors or 6 months rent in advance.

Fire_Fox

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

And yet many people manage perfectly well on minimum wage or benefits for many years without getting into debt. Bad things absolutely do happen to good people, but to take no responsibility for failing to plan for a rainy day or manage the problem before they get to the point they need to go onto a DMP shows a debtor has learned nothing.

I have spent quite a bit of time on the Debt-free Wannabe board and it is amazing the way families prioritise their outgoings even when they are in deep trouble. Cars and telecoms and holidays and crazy grocery bills, whilst their homes are under threat of repossession or court summons have been issued for council tax and rent arrears.

On the flip side there are inspirational threads such as 'Live on £4K for a Year' (DFW board) and 'Eat Healthily on 50p per Day' (Old Style). :money:

Alias_Omega

Hi all,

We have accepted the tenant with the CCJ, if they Guarantor passes the credit checks.

If the Guarantor fails with a CCJ etc, then thats that tenant out of the window.

We thought hard over the afternoon, and its 50/50.

I expect maybe in 8-9months ill be sat here telling you how it all went wrong and were £XXXX out of pocket.

Regards,

Mr & Mrs Alias

Tuscan

JOWO said..However, there seems to be an implied wish by some tenants with really cack credit scores that landlords show them great leniency and understanding for their circumstances. They'd be better off repairing their credit record or accepting that they must provide guarantors or 6 months rent in advance.[/QUOTE]

here we totally agree with each other, it should not be about expecting a LL to listen to some old sob story, its about the tenant being up front before the checks and telling the truth and offering the LL 6 months in advance along with other things a LL may want to see in all applications. Proof of income and money in the bank etc. then they can make there choice, i guess some will like the advance payment and go for it, others may not....

If we have to rent then for us we will be in a position to pay as much up front as is needed within reason as trust has to go both ways right? plus all my debts will be satisfied on the sale of my house...