Admin fee/Credit check for renting a house

michelle_stt

We are moving away to Hull and have found a house.
Its a letting agent (our current house is with a LL on his own, prior to that it was a letting agent who he knew so he didn't charge us the admin fee or credit check as he had the reference from our previous letting agent).

Apparently an admin fee for the current letting agent (according to having a snoop on google) is £250. (will find out for sure when I ring tomorrow).

I passed the credit check on my first rented property. I have been renting for 6yrs now and in the 3 properties I have never fallen behind with the rent. It has been paid on time in full every month by standing order.

We have had problems over the last year as my husband was made redundant, but we relied on savings and still never fell behind with the rent, but some other bills suffered while we sorted ourselves out.

Could we fail the credit check? As we dont think you get it back and £250 is a lot of money to lose.

Any help would be brill.
Thank you.

steve1980

Do you work on your own or do you both work?

Do you have any CCJ's? Defaults? Missed payments?

Are you (both) earning 2 x the rent per month?

michelle_stt

steve1980 wrote: »

Do you work on your own or do you both work?

Do you have any CCJ's? Defaults? Missed payments?

Are you (both) earning 2 x the rent per month?

My partner works here, I currently look after our 2 young children and are expecting our last. When we move, he will be in work within a month but we will be relying on savings until then.

Never had a CCJ, as rent was the most important that was always paid, it was luxuries such as Sky tv and contract phone bills that we were late with paying. They have all been either paid in full or with a payment plan.

lindsaygalaxy

Admin fees and credit check fees are not the same around here. you have to pay a credit check fee for about £125+ vat per adult over 18 (plus for a guarantor if needed) then an admin fee ontop.

michelle_stt

lindsaygalaxy wrote: »

Admin fees and credit check fees are not the same around here. you have to pay a credit check fee for about £125+ vat per adult over 18 (plus for a guarantor if needed) then an admin fee ontop.

Is that every adult in the house? Or the one who will be on the tenancy? We cant afford admin fees that steep aswell as handing over £1100 deposit and rent in advance, as we are moving 80 miles away and the moving van is also costing a fortune

rentergirl

It's a licence to print money: agents often don't check previous landlord references, and charge £250 for an online credit check that actually about £5. Until agents are regulated, this will continue. Yes, you must pay, and no there's no refund if you fail. It's scandalous.

michelle_stt

rentergirl wrote: »

It's a licence to print money: agents often don't check previous landlord references, and charge £250 for an online credit check that actually about £5. Until agents are regulated, this will continue. Yes, you must pay, and no there's no refund if you fail. It's scandalous.

Its awful! If we failed could we ask if we could still rent with a guarantor? Thank you for your help.

Werdnal

If you have no court actions against you, CCJ's, outstanding debts etc, then you should pass. However, if you have any concerns, discuss it with the agent first. Take along bank statements, proof of your previous rental history, details of previous LL that they can contact to verify everything. Be honest about the fact that your OH was made redundant - have you anything to prove he will be starting work when you move? Take that with you as well.

If you feel you do not want them to credit check you, then explain your concerns upfront, and offer to provide a guarantor. However, remember a guarantor is not just someone who will offer to back you on rent payments - they have to be credit checked too, and meet certain criteria, ie being a home owner/high earner, so they can meet their own living costs aswell as covering any rent debt you create.

If you are honest and upfront at the start, it puts you in a much better position, than allowing the agents to check you, finding something dodgy, then refusing to let to you and you losing the money!

Also, ask them what the admin/credit check fee covers - request a full breakdown of what you are actually paying for. You wouldn't pay that much money to anyone else without asking what you are getting for the payment, so ask them!

G_M

rentergirl wrote: »

...: agents often don't check previous landlord references, and charge £250 for an online credit check that actually about £5. ....

I've seen you make this claim before rentergirl.

And I've asked before where you believe it is possible to do this for £5.

You've never answered.

But I agree tenant vetting (not the same as just a credit check) should not cost £250. Actual online costs vary from £15 to £50 ish - depending on provider and precise service, and the agent has genuine business costs to cover which justify something on top of this.

steve1980

If neither of you are working and the agent uses Homelet to carry out the checks then you'll fail.

You would need a guarantor who needs to be earning 3 x the monthly rent.