Credit checking a self-employed tenant

manic

I have had an application from a self-employed person for a tenancy on my flat.

I used the application form from Landlordzone & will use their "Tenantverify" service. It occured to me that the application may have a flaw with regards to the self-employed. It doesn't say that, if you are self-employed you should give the name & address of your accountant.

Do I need the name & address of an accountant?

Also, is there anything else I shound be aware of when letting to a self-employed person?

Thanks.

Debt_Free_Chick

Many self employed don't use an accountant - I certainly don't. I prepare my own accounts and do my own tax return.
I would have thought that a credit worthy self employed tenant is no different to a credit worthy employed tenant. Indeed, a self employed person who manages their own accounts & tax returns might be considered to be "more financially savvy" - but then I would say that, wouldn't I :rotfl:

Seriously though, ask yourself what you're trying to achieve and then carry out the necessary checks. Perhaps your only concern is "proving" a self employed person's income - but do you get proof of income from an employed person?

Even if income can't be proved, does it matter if the credit check is clean?

prudryden

I would want to see verification of his income, which I suppose, is going to be obviously his tax return.

Generali

I'd see bank statements - you can see how much they actually earn (at least the bit that goes through the bank) and if they are in the habit of bouncing cheques etc.

Also, I'd be a bit circumspect about showing someone my tax return. Less of a problem with bank statements (acct no etc blanked out of course).

prudryden

I agree Generali that tax returns are on the touchy side, but my response was due to Debt's good argument of some sole trader's doing their own returns. I have only had to ask previously to see the books signed off by an accountant - this wasn't a problem for the tenant, Bank statements are good but not as conclusive, as incoming funds can be intermitant with no indication of the source.

bap98189

If you are self-employed bank statements may not be the best guide as income can come in dribs and drabs. Perhaps it would be best if you ask for a reference from their previous (or current) landlord. After all if they have paid rent on time with no problems to the previous landlord, chances are they will do the same with you.