Credit checks on tenants

hobo28

Hi all

My mum has moved in with her BF and would like to rent her old house out. We've found someone through the next door neighbour but would like to run a credit check against them to make sure they are suitable.

I've found a site on the Internet which will do it but the form is very very onerous and the tenant understandably doesn't want to fill it in. It not only asks for the basics but wants passport numbers, NI, employers etc. etc. The tenant is worried about identity theft and I can understand why. Is there a company out there which can run credit checks based on previous address, name, DOB etc.

Thanks

~Beanie~

Things may have changed since I worked in a Bank but we used to deal with 'Status Enquiries'.

Basically the prospective tenant would give your mum their bank details and also give their bank permission to reply to your mum. Your mum then writes to the bank and asks whether they feel that the prospective tenant is 'good' for the amount of the rent each month.

The bank would look at their account and reply with a long winded way of saying 'yes, reliable and trustworthy and considered good for this amount' or 'no, don't do it!'. There is some info here under 'Bank References'.

Maybe that there is another way now but I'm not sure. I don't think a private landlord could do a full credit check on someone.

tbs624

~Beanie~ wrote: »

I don't think a private landlord could do a full credit check on someone.

The LL doesn't " do" the check themselves - they would do it either through say the RLA (Residential LL Assoc.) or a firm such as TenantVerify, Rentcheck etc. All of these have websites so you can see what sort of information they are likely to be looking at, and the different levels of check offered. The cost is usually met by the Tenant, who is entitled to a copy. The checks also give a "risk evaluation score".

clutton_2

any tenant who does not want to complete a comprehensive tenancy application form such as that to be found on https://www.landlordzone.co.uk should not be considered as a suitable tenant in my view. sadly in this day and age there are con-merchants and we all need to be extra vigilant in checking tenants - who exactly does your tenant think is going to steal his identity ?

LLs can do most of the checks themselves, except credit status, as long as the tenant has signed a Data protection disclaimer sheet (see the last page of ab ove form)

ruggedtoast

clutton wrote: »

any tenant who does not want to complete a comprehensive tenancy application form such as that to be found on www.landlordzone.co.uk should not be considered as a suitable tenant in my view. sadly in this day and age there are con-merchants and we all need to be extra vigilant in checking tenants - who exactly does your tenant think is going to steal his identity ?

LLs can do most of the checks themselves, except credit status, as long as the tenant has signed a Data protection disclaimer sheet (see the last page of ab ove form)

+1

Its much more likely they dont want to complete it because they know itll turn up something "bad". That said theres no way to fail a credit check, they simply give you a report and you decide if you want to let to them or not.

Bungarm2001

Asking for N.I. and passport numbers etc etc is not at all unusual when verifying a tenant...just the opposite in fact. I would show any prospective tenant who baulked at those requests the door as they probably have something to hide.

Always always be very wary of tenants being put forward by friends or neighbours.

tbs624

ruggedtoast wrote: »

+1That said theres no way to fail a credit check, they simply give you a report and you decide if you want to let to them or not.

We mentioned this one before RT - that's your interpretation. If your info produces a score below the base line for the "Fraud Risk Analysis",or whatever term the individual credit check company uses, you have in effect, failed the check. Few LLs will take on a Tenant assessed to be a financial risk - they simply can't afford to.

sarkin

I always like to credit score the landlord too, make sure he does not have any bad credit as this will affect him paying the mortgage. As I am sure you are aware with property falling in value and BTL mortgages more expensive any landlord with bad credit will see his monthlly cost rise.

tbs624

sarkin wrote: »

I always like to credit score the landlord too, make sure he does not have any bad credit as this will affect him paying the mortgage. As I am sure you are aware with property falling in value and BTL mortgages more expensive any landlord with bad credit will see his monthlly cost rise.

:rolleyes:
It’s more likely that you not paying your rent on time will affect his/her ability to pay the mortgage (and you’re assuming that all LLs have mortgages…….) If the risk accepted by both parties were equal then I’d agree with you but as it isn’t, I don’t.

Presumably, if you were buying a car or anything else on credit, you’d want the other party checked out too (just in case)? And if you were applying for your own mortgage you’d want a check on the mortgage company in case you ended up with a Northern Rock scenario? Holiday company asks you for a deposit ? Then you'd want one from the holiday company too in case it went bust and couldn't honour the arrangement?...........................

Snooze

Bungarm2001 wrote: »

Asking for N.I. and passport numbers etc etc is not at all unusual when verifying a tenant...just the opposite in fact. I would show any prospective tenant who baulked at those requests the door as they probably have something to hide.

Always always be very wary of tenants being put forward by friends or neighbours.

Are you for real? :rolleyes: If you asked for my NI and passport numbers I'd tell you to mind your own !!!!ing business because neither are anything to do with you and neither number would tell you anything anyway. It's clear that if you're demanding your tenants hand over their two most valuable and scammable numbers that you are a fraudster.

You landlords !!!! me off no end with your big "I am" attitudes, expecting people to hand over passport details, driving licence details, NI details, bank account details, credit card details, DOB details, employer details, 10 years previous address history details, 10 separate reference details and the biggest one of all - 6 months [strike]free credit[/strike] rent in advance etc :rolleyes: . Even the banks don't ask for NI numbers and all this for a tenancy on what is more often than not a !!!! hole with a patchy coat of magnolia to just about make it into a habitable condition. :rolleyes:

I hope the lot of you BTLers fall flat on your faces and get your properties repo'd - you certainly deserve it with the way you all swan around the place thinking you're something you're not. :rolleyes:

Rob

Save4ArainyDay

Try www.tenantverify.com