Advice about re-marketing and credit checks please

by Readers Question

13:19 PM, 5th April 2015
About 4 years ago

Advice about re-marketing and credit checks please

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Advice about re-marketing and credit checks please

We have just received notice that one of our tenants is leaving us and so (having used agents before but now following Mark’s guidance on self marketing) I was just in the process of starting the re-marketing process (well how else would you want to spend Easter Sunday???) when a thought occurred.

Once we have a short list of prospective tenants who are genuinely interested, and who we would entertain living in our property, would it work if we credit checked several people at once – on the understanding that they would then own the credit check (to use elsewhere if they were not the successful applicant)?

Having been in the position last year where our chosen applicant failed the credit check, leaving us back at Square One just days before we’d hoped she would move in, we are keen to avoid a repeat of that situation if at all possible

And then … if that would work/be legal how much do others pay/charge for a credit check + 6 months rental insurance (which we pass on to tenants) – so I guess I’m asking much should we ask those 2-3 interested people to cough up at the viewing if they wish to proceed (that should sort the men from the boys too methinks)?

Denisecredit



Comments

Neil Patterson

13:26 PM, 5th April 2015
About 4 years ago

Hi Denise,

To get us started I have found Mark's article "Referencing before viewings – everyone’s a winner!" >> http://www.property118.com/referencing-viewings-everyones-winner/73263/

Managing your own Buy to Let Properties >> http://www.property118.com/managing-buy-let-properties/73298/

And finally LettingSupermarket. They let all of Mark's properties and at the price why would you bother to do it yourself ? >> http://www.property118.com/letting-supermarket-amend-pricing/68829/

Mark Alexander

16:22 PM, 5th April 2015
About 4 years ago

Reply to the comment left by "Neil Patterson" at "05/04/2015 - 13:26":

Thanks Neil, I'm back home now and they are the three reference articles that I would have recommended too 🙂
.

Pam Thompson

17:09 PM, 5th April 2015
About 4 years ago

References have a very short life span so I don't think it would be appropriate for either tenant or landlord to pursue referencing unless both are committed to a particular property. Also if landlords wish to take out rent guarantee insurance, the reference provided to the insurance company has to be less than 30 days. Might I suggest you keep details of all interested parties and if the first tenant fails referencing (normally only takes 48 hours), you have a ready supply of alternatives you can get references 9n too. Good luck.

Sam Addison

17:25 PM, 5th April 2015
About 4 years ago

Without going to any expense you could make sure potential tenants know there will be a credit check and if you knew some of the questions that will be asked (I don't) then you could advise them of this. Since the tenant will be paying for the check this allows them to drop out if they are likely to fail - saving them money and you time and money.

Denise G

18:15 PM, 5th April 2015
About 4 years ago

what credit referencing providers do other landlords use? and what do they typically charge?

Cave Man

7:07 AM, 10th April 2015
About 4 years ago

Rent Guard are good. I've done 7 checks with them to date. 2 have come back with CCJ's, and one rejected due to affordability criteria.

Been happy with them so far. Remember to use the comprehensive checks. It's worth the extra. Checks cost £30ish. I get the tenant to pay for these. They also check guarantors as well.

Lynne Davis

10:46 AM, 11th April 2015
About 4 years ago

We explain what checks we do and take a £50 fee from the first applicant (this will cover all checks including those on a guarantor if needed). It's a lot less than most agents charge but it's enough to put them off applying if they know they're likely to fail referencing. We'll then stop actively marketing the property; we'll still accept applications from others while the first one is being followed up, but we warn them that they're not at the front of the queue. We'll only reference the second applicant if the first one fails, and if that doesn't happen then they get a full refund.

Denise G

11:01 AM, 11th April 2015
About 4 years ago

Reply to the comment left by "Lynne Davis" at "11/04/2015 - 10:46":

thanks - very helpful

Jireh Homes

10:17 AM, 14th April 2015
About 4 years ago

As a reminder to readers with properties in Scotland, it is not permitted to charge prospective tenants any fees (and this includes Inventory fee once lease agreed). So an option is to work up an application questionnaire to obtain pertinent information e.g. employment details, previous renting history, any CCJ, etc. Allan


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