Credit check on tenants from overseas - lack off!!

Helpme999

Hi everyone, we have found some tenants through the estate agents. The agents have done all the checks. The previous landlord and employers checks have come back glowing. However the credit check, there is nothing as the tenants have been working overseas for a number of years. My question is what do we do now? The agents have said that's all the checks they can do. However how else as landlords can we protect ourselves? Double the deposit? Can we do that? Help:) thanks

tbs624

You could seek payment up front for the rent for the intial Fixed term or insist on a guarantor

Note that deposit should not exceed equivalent of 2 months' rent payments.

Helpme999

Hi, many thanks for your reply. Why should the deposit not exceed 2 months rent payments? Sorry it may be a daft question but dont know why!

How does the guarantor thing work?x

G_M

Helpme999 wrote: »

Hi, many thanks for your reply. Why should the deposit not exceed 2 months rent payments? Sorry it may be a daft question but dont know why!

How does the guarantor thing work?x

It gives the tenants additional rights.

A Guarantor agreement must be witnessed and Executed as a Deed, and the guarantor must have seen the tenancy agreement which they are guaranteeing. Note that many agents are ignorant of this and get it wrong, so check!

Any debts of the tenants to you (unpaid rent, damage etc) can then be legally chased from the guarantor - so you need to credit check the guarantor jjust as you would a tenant.

Helpme999

thank you so much for your help. now i am armed with plenty of info!x

Notmyrealname

Helpme999 wrote: »

Hi everyone, we have found some tenants through the estate agents. The agents have done all the checks. The previous landlord and employers checks have come back glowing. However the credit check, there is nothing as the tenants have been working overseas for a number of years. My question is what do we do now? The agents have said that's all the checks they can do. However how else as landlords can we protect ourselves? Double the deposit? Can we do that? Help:) thanks

If you think a good credit record is the sign of a decent tenant, you're sorely misguided.

Quite why you think you're more protected with a good credit history is beyond me.

G_M

Helpme999 wrote: »

thank you so much for your help. now i am armed with plenty of info!x

You're welcome.

However I have 2 concerns:
1) you seem to have only a limited understanding of what's involved with being a landlord (that is not meant insultingly - just an observation that may be wrong!)

2) your agents seem to have not been able to help/advise you as fully as one would hope (though this is no surprise - agents vary a lot)

This post may help you....

PasturesNew

There is a limit to how much deposit you can take - 2 months. You could request the first 6 months' rent up front - but if they are not in a position to give you that, then really you've changed the terms and conditions under which they first handed over good money for the checks, so I think you should morally, at least, refund their credit checks money.

Helpme999

G_M wrote: »

You're welcome.

However I have 2 concerns:
1) you seem to have only a limited understanding of what's involved with being a landlord (that is not meant insultingly - just an observation that may be wrong!)

2) your agents seem to have not been able to help/advise you as fully as one would hope (though this is no surprise - agents vary a lot)

This post may help you....

1. You are right and we are reading lots of things online to try and learn fast. Circumstances have made us reluctant landlords.
2. We are using a large well established agents and you are right, their advice so far has been !!!!! We thought by using a established company our lack of experience would fill the gap. Hope you know what I mean.

Helpme999

Thank you for the link, it is very helpful.

Thrugelmir

Helpme999 wrote: »

2. We are using a large well established agents and you are right, their advice so far has been !!!!! We thought by using a established company our lack of experience would fill the gap. Hope you know what I mean.

Your running the business. So its your decision. Not the Agents, as they cannot be held be responsible as to whether these people will be good tenants or not.