Credit checks when renting

Andysandy

As a landlord, I have used homelet recently for referencing a tenant (they had a zero fee offer) and they do a credit check but are only looking for major issues like CCJs and other recent adverse (defaults, etc). The odd late payment shouldn't be a problem.

dh1989 wrote: »

Thanks. We're in a strange position because my credit score isn't good, but we have a lot of savings so could technically pay a large part of the rent up front of required. Not sure if many will accept more up front rather than the steady income though?

Comms69

muhandis wrote: »

Yeah, you should ask them or TransUnion. But how can you believe what they tell you.....

I'm not saying that transunion don't have access to the report, I just don't believe they send the full report to the agent

muhandis

LetAlliance is not an LA, they're a tenant referencing agency used by LAs/landlords to do tenant referencing.

TransUnion send the full report to the referencing agency (LetAlliance in this case) who do necessary checks and then send a report to the LA/LL saying that the tenant has passed/failed/passed-with-conditions, etc. As below (this is from UKTenantData, another of these agencies)

Comms69 wrote: »

I'm not saying that transunion don't have access to the report, I just don't believe they send the full report to the agent

theartfullodger

Andysandy wrote: »

..............The odd late payment shouldn't be a problem.

That's up to the landlord/agent giving reference. It is entirely up to them if they truthfully mention late or underpayments.


S8g10 may be validly served if only 1p is underpaid for only 1 day: But I wouldn;t take that to court (albeit that's a valid legal option..)

Comms69

muhandis wrote: »

LetAlliance is not an LA, they're a tenant referencing agency used by LAs/landlords to do tenant referencing.

TransUnion send the full report to the referencing agency (LetAlliance in this case) who do necessary checks and then send a report to the LA/LL saying that the tenant has passed/failed/passed-with-conditions, etc. As below (this is from UKTenantData, another of these agencies)

Right so as I suspected they don't see any infromation

muhandis

Who's they? I never claimed that LAs get the full credit report, but the agencies that do the reference checks (on behalf of the LAs) do, as the LetAlliance website says so it's all the same to the prospective tenant.

Comms69 wrote: »

Right so as I suspected they don't see any infromation

Andysandy

For the online referencing firm that I usually use for my tenants, they have to provide bank statements, payslips, employer letter/call, previous landlord reference, etc and permission for a full credit check. It's quite comprehensive and (unfortunately) intrusive.

I can see why tenants might be annoyed but it is what it is.

dh1989

Thank you, this is really insightful to hear from a landlord.

If I'm honest I would find that to be a lot of information to provide.

At the time of moving, I may not be employed but am seeking employment. Nothing else to it, just that we have to complete on our sale by a certain time and whilst I am looking for a new job it is difficult when relocating so I could be waiting a few weeks. My wife and I have enough savings to pay the rent up front for 12 months if it came to it.

Personally my credit score isn't great, I've borrowed lots but never missed any payments or had any court judgements.

Interesting to know how that scenario would go down with landlords? Essentially we can pay all rent up front and have money for all the bills for 12 months at least, in the worst case scenario, they should be assured that everything is covered for a year.

muhandis

Just to be clear, not all landlords will require this much information. I've had landlords in the past who did self referencing (checked id, payslips themselves) or just needed to see money in the bank. It differs and depends entirely on the landlord, as artfull says above.

If you've not missed any payments your credit history should be decent. But yes, not being employed will be a problem with these cookie-cutter referencing agencies.

In your place I would look for properties on OpenRent which is used by self-managing landlords who might be more willing to be flexible.

Andysandy

If you have never missed any payments, then you have a good credit history. Ignore the made-up "credit score".

Personally, I would not be able to let to someone who wasn't employed, purely because I couldn't get rent insurance cover for the tenancy.

I would think there would be landlords willing to let on a 12 month fixed term with rent upfront but if I'm not wrong, taking large sums of rent in advance comes with its own additional complications with regard to the status of that lumpsum.

dh1989 wrote: »

At the time of moving, I may not be employed but am seeking employment. Nothing else to it, just that we have to complete on our sale by a certain time and whilst I am looking for a new job it is difficult when relocating so I could be waiting a few weeks. My wife and I have enough savings to pay the rent up front for 12 months if it came to it. Personally my credit score isn't great, I've borrowed lots but never missed any payments or had any court judgements.

Interesting to know how that scenario would go down with landlords? Essentially we can pay all rent up front and have money for all the bills for 12 months at least, in the worst case scenario, they should be assured that everything is covered for a year.