question to landlords

nat38

how do you do a credit/reference check on your tenants?
does anyone use LettingRef?

thanks!

whalster

I charge £20 per person I get their wage slips bank statements passport name address employer contract of employment(if any)and previous address /landlord if any
Follow the paper trail with the National Insurance number on payslips , with same moneys going into bank accounts etc then a couple of phone calls to employer / landlord
U use the private landlord directory credit check which is £8 cheapest I have found yet .
It really isn't rocket science ,you can charge what you want I supose but £20 I think is fair I still make £12 for reviewing a few documents and a couple of phone calls how these credit check companies justify their fees and then more fees heaped on by the letting agents is beyond me .
Oh one thing I have forgot street view is a great thing too now I check that from time to time for previous address to see if is similar sized type of property etc

nat38

thanks whalster
anyone else?

jjlandlord

You should ensure personal data are kept securely and only for the time needed, especially if considering to have passport photocopies.

whalster wrote: »

It really isn't rocket science ,you can charge what you want I supose but £20 I think is fair I still make £12 for reviewing a few documents and a couple of phone calls how these credit check companies justify their fees and then more fees heaped on by the letting agents is beyond me .

For sure no tenant will complain about £20 considering what letting agents charge.
That said one could argue that considering it is for the landlord's benefit only and is cheap, this check should just be part of the cost of business (e.g. companies do not charge for credit check when applying for credit card)

whalster

Thats a fair point but I don't charge as high a rent either or other stupid fees , if this proposed idea of having all fees rolled up into one cost for the life of the tenancy comes to pass then the letting agents will be stuffed as the monthly amt. will be a lot higher to the tenant ( in reality will be the same but will look a lot higher per month)and the percentage deducted to the landlord will have to go up ,I wonder at what point the owner of the property would say ey up si thi could just about stand 10% but not 18% sling yer hook
Or any other strong reigonal brogue you prefer
cornwall ? what would that be?

nat38

another question - what conditions should a guarantor meet? do you have to have a contract with them? how does it work?
thanks!

Werdnal

nat38 wrote: »

another question - what conditions should a guarantor meet? do you have to have a contract with them? how does it work?
thanks!

You need to do a full and thorough credit check on the guarantor as well - there is no point in signing them up if they cannot afford to cover the rent either! Don't just take their word for it.

The guarantor agreement must be executed as a witnessed deed to make it binding. They must be given a copy of the tenancy agreement before signing, to confirm they know what they are guarantor for.

Excuse me for saying this, but you are still asking very basic questions about how to let your property, and I have grave concerns that you have done enough research into this. A couple of weeks ago, here:

https://forums.moneysavingexpert.com/discussion/4201987=

you claimed to have found a possible tenant, and yet you are still no wiser about how to credit check them or secure a guarantor against a tenancy. I know we all have to start somewhere, but you do not seem to have taken onboard the seriousness of becoming a LL, or done any more homework than asking the odd question here.

Have you considered joining a LL association?

nat38

thanks werdnal
I see your point, it may not look like, but I am doing my research at the same time. Still think most of my question are due to not being familiar with the system in the UK.I own a couple of properties abroad and there,a guarantor has to OWN a property for example.

Werdnal

nat38 wrote: »

thanks werdnal
I see your point, it may not look like, but I am doing my research at the same time. Still think most of my question are due to not being familiar with the system in the UK.I own a couple of properties abroad and there,a guarantor has to OWN a property for example.

A guarantor has to prove they have sufficient income and/or assets to be able to cover their own living expenses, and meet the costs incurred by the tenant they are backing. Does not necessarily mean they have to own a property if they are high earners. I don't think the requirements for a guarantor are set in stone, but obviously the more assets they own or income they earn, the better.

EmmaHerts

A landlord has no right to see your N.I number. That is not meant to be given out willy-nilly.

tbs624

jjlandlord wrote: »

You should ensure personal data are kept securely and only for the time needed, especially if considering to have passport photocopies.



For sure no tenant will complain about £20 considering what letting agents charge.
That said one could argue that considering it is for the landlord's benefit only and is cheap, this check should just be part of the cost of business (e.g. companies do not charge for credit check when applying for credit card)

It's also worth noting that such fees can be set down as an expense on the LL's tax return too.