Experian launches rent payment profile for tenants

Experian launches rent payment profile for tenants

14:52 PM, 16th March 2012, About 9 years ago 35

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Missing a rent payment could affect a tenant’s credit rating as one of the largest credit checking firms opens a new service for landlords and letting agents.

Experian is opening data files on a tenant’s rent payment history as a new check for landlords and letting agents vetting renters who want to move in to their homes.

The service is likely to do away with references and allow landlords to make more informed decisions about whether to let.

For tenants, failing to pay the rent could damage their credit profile when they seek borrowing, like credit cards, loans or a mortgage to buy their own home.

Experian is selling the service as a way for tenants to strengthen their credit history and to help them qualify for better and cheaper credit.

Landlords and letting agents will have to pay a small fee to access Experian’s Rental Exchange – but the company also wants them to sign up as information providers.

Due to data protection laws, tenants will have to agree that their payment data is forwarded to Experian.

The company reckons that gathering data on the UK’s 3 million plus tenants will take at least year due to the disparate nature of the lettings industry, which is largely managed by independent landlords and letting agents.

Paul Vescovi, UK and Ireland managing director of Experian credit services, said: “With several million people living in privately rented accommodation, a significant percentage of the population could be missing out on mainstream, low-cost credit because lenders do not currently have a comprehensive picture of their financial track record.

“The Rental Exchange will strengthen people’s credit histories, helping them to access a wider range of credit deals.”

Another of the big three credit agencies, Callcredit, is also rumoured to be looking at a similar service.



Comments

by

20:30 PM, 19th March 2012, About 9 years ago

It depends on the Landlord's/Letting Agent profile history....networking on Twitter & Property Tribes must give you an idea of a landlord's/letting agents credibility? Would you not trust Paul Barrett or Mary Latham to recommend/reference a tenant if they happened to know one who was moving to your area looking for a property to let?

Regarding the property and the £240 admin fee...the property was still available 2 months after we viewed it, so 2 months rent down the drain for the landlord. If it wasn't for the fee I would have considered moving in....but I'm an accountant (too prudent).

by Mark Alexander

20:43 PM, 19th March 2012, About 9 years ago

In answer to your first question, I would always do the same due diligence no matter who recommended a tenant to me. I always have a choice to make as I always have more prospective tenants than properties. Providing the tenant who was recommended by a friend ticked all the boxes for me based on my due diligence then yes I would probably choose that tenant as they would be a better bet based on the fact they wouldn't want to let their friend down but that's it, referencing comes first.

Regarding the landlord who's had a two month rental void, all I can suggest is that he needs to visit this site a bit more often and so does his agent. If I were to meet him I'd suggest he finds another agent and two months rent is probably his entire profit on that property for a whole year, maybe more.

by

21:25 PM, 19th March 2012, About 9 years ago

Would be interesting if tenants could get RGI cover themselves with their new landlord/letting agent the named beneficiary in the event they cannot keep up the rent payments for some reason (loss of job,etc)....if this is the biggest cost it seems right the tenant cover it for the Landlords/Letting Agents piece of mind. Maybe Experian should offer it to tenants on the back of their new rent credit scheme.

by Mark Alexander

21:36 PM, 19th March 2012, About 9 years ago

Now that IS a good idea and would certainly change my perspective, especially if the the insurer was a household name and the policy was paid up front, at least for the the first six to eight months.

by

21:53 PM, 19th March 2012, About 9 years ago

Got there in the end....food for thought I suppose.

by Mark Alexander

22:01 PM, 19th March 2012, About 9 years ago

When you manage to get that model into place you will be onto a winner and I will be delighted to help you to promote it widely to get you started. Once you have a few hundred client using this model word will spread very quickly after that.

Good luck 🙂

by

22:30 PM, 19th March 2012, About 9 years ago

Thanks Mark....some more market research to do I think.

Regards,
Sam

by

23:23 PM, 19th March 2012, About 9 years ago

I agree Mark tenants could have their own RGI passport so to speak
LL wouldn't have to bother purchasing their own RGI and even if things have been dodgy in the past a RGI policy would persuade me to take on that tenant.
Also though I would check with LRS and tenantid.

by

5:51 AM, 20th March 2012, About 9 years ago

Just thought of a flaw in my RGI passport idea.
It is the same situation with LA liability insurance; how do you ensure the tenbat has kept the RGI up to date.One can imagine the day the RGI runs out the 1st rent payment is missed, then what.
Thje LL is stuffed.
Unless somebody like re3ntfare could come up with a guarantee that tenant using their system would be guaranteed to have a valid RGI policy in place and the LL be indemnified to that effect by rentfare then such a service could work.
I can't see rentfare being able to source an underwriter that would guarantee a LL's rent in the event of a tenant not having a current RGI policy.
So we are left witth the guaranteed status quo of the LL sourcing the RGI.

by Mark Alexander

8:31 AM, 20th March 2012, About 9 years ago

I think I may be slightly ahead of you on that one Paul, it's the reason I suggested the RGI is paid up front for the first 6 to 9 months. If you are an assignee you are informed of cancellation. If it is a condition of your tenancy that tenants have it you could pay for it to be reinstated at the point of cancellation and then serve notice on the tenant and legitimately withold the cost of the interim RGI from the rent deposit 🙂


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