Flaw in the Tenancy Referencing Process?

Flaw in the Tenancy Referencing Process?

8:57 AM, 29th December 2021, About 4 weeks ago 40

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Being a newbie to the rental business, I employed an agent to find me a tenant plus full management of the property. The tenant has now done a ‘flit’ leaving behind all his furniture and unpaid utility bills.

Having done some research on him, I have found out that he has substantial debts/CCJs and had I known about them, I would never have agreed to accept him as a tenant.

I queried this with the agents, who said that they had run a credit check but were not allowed to reveal the bad credit rating due to Data Protection laws. The agents say they have to obtain permission from the tenant before they can give me the credit reference that they obtained.

Surely anyone who has a bad credit rating is never going to give permission for that credit reference to be shared, as no landlord would accept this tenant?

This also allows the agents to put any tenants with very poor credit ratings in any property and then hide behind the Data Protection Laws?

In future, I will know to ask for a copy of the reference and if someone refuses that I will just presume that they aren’t creditworthy. I had thought that the agent was working for me and would protect my interests, I was obviously wrong.

Jane



Comments

by John

14:52 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by JTH at 29/12/2021 - 09:37
You are correct but the Letting Agent obviously had done this before and got away with it. They use a Solicitor who has been instructed to "( fight it to the end" as they know that very few tenants have very deep pockets and do not have the means to fight it all the way to court, which could cost £10,000 and there is still the risk that they may not win the case and have to pay M & P legal costs.

by Jane Tomlin

16:10 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by Pixie Props at 07/01/2022 - 11:09
I spent 20 years working for a large investment company in the City of London so I am more than well aware of those risks. Worked my way up from secretary to Vice President in 14 years. The most money we have ever made has been on the properties that we have lived in. This, of course, has nil tax liabilities and everyone has to live somewhere, so I often wonder if you should just invest as much as you can in your main residence and forgo the rest!

by Pixie Props

16:33 PM, 7th January 2022, About 3 weeks ago

If you have the courage, I have noticed around bromley/east Croydon, Sussex Coast, unwealthy people living the high life. They live in dream homes that they have no intention of actually owning, they are just passing through and accumulating wealth like you suggest from their homes, who knows how/where they end up? but they have lived the life and had experiences that most miss busting a gut trying to be mortgage free in more modest homes, instead of cashing in their chips at a later stage in life.

by LaLo

16:57 PM, 7th January 2022, About 3 weeks ago

I feel that agents aren't that worried about tenants, they want payment- simple.

by Graham Bowcock

17:01 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by LaLo at 07/01/2022 - 16:57
The last thing agents want is poor tenants. They can be a drain on time and get agents a bad name with landlords. If a tenant can't fulfil their obligations, the agent struggles to get paid and may end up spending time sorting out the issues, possibly without being paid for it.

In our town, word would soon get out if we were finding poor tenants.

by Jane Tomlin

17:27 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by Graham Bowcock at 07/01/2022 - 17:01Why would an agent put tenants in a property with a very bad credit history? Surely you are just asking for trouble?

by Graham Bowcock

17:32 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by Jane Tomlin at 07/01/2022 - 17:27
1 - I don't know why an agent would do it wilfully; just plain stupid.

2 - yes, as I said before you're asking for trouble (and wasted time, inconvenience, poor reputation, etc.).

It should just not happen. I do, however, wonder about some of the newer (and younger) agents and their experience. Until we are properly regulated there's nothing to stop agents taking the money and running!

by Jane Tomlin

17:43 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by Graham Bowcock at 07/01/2022 - 17:32
Thank you - I appreciate that I was a fool to assume that an agent would not put someone in my property with a bad credit history. When I queried why they did that, the reply was because they had rented to them before.

by John

21:28 PM, 7th January 2022, About 3 weeks ago

The very large London agent that I used doesnt seem to care about getting a bad reputation. They know that 99.9% of tenants dont have the financile means to take them to a court hearing that could well cost many £000s.
Also most tenants dont read the ( bad) reviews on the internet so they can do as they like. The property Onbudsman says they are just advisery and have no power to do anything.

by John

22:14 PM, 7th January 2022, About 3 weeks ago

Reply to the comment left by Graham Bowcock at 07/01/2022 - 17:32
Jane , a large agency has many branches who are motivated to make sales ( find tenants). Head office probably would not want them to find poor tenants but the sales folks in the branches just want to win tenants to make their quotas and earn commssion.


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