Prospective tenant has CCJ – should I take them?

by Readers Question

9:47 AM, 28th May 2015
About 4 years ago

Prospective tenant has CCJ – should I take them?

Make Text Bigger
Prospective tenant has CCJ – should I take them?

I have just evicted one tenant so need to ensure I find the right tenant next. I’ve just referenced a new family and the tenant has a CCJ for car hire £1300.

However I have spoken with previous 2 landlords (one housing association the other a letting agent) . The rent was up to date and the house was left immaculately, they recommend them as tenants So my dilemma is should I let to them?

Sarahcar



Comments

Neil Patterson

9:52 AM, 28th May 2015
About 4 years ago

Hi Sarah,

£1300 on car hire is one of the most odd CCJs I have seen and for some reason I can't explain rings alarm bells.

You have obviously had problems in the past and you may want Rent Guarantee insurance, but you will not get this without the tenant passing references.

I really would recommend that for 4% you let LettingSupermarket deal with your next tenancy and then you can rest more easily 🙂

Please see >> http://www.property118.com/letting-supermarket-full-management/68829/

Romain Garcin

11:16 AM, 28th May 2015
About 4 years ago

When is this CCJ from? Has it been paid off?
It may be 'old' or it might be from last year, and that would make a difference IMHO.

It is also a good idea to ask for CCJs on your application form just to see if the prospective tenant will be upfront and disclose any he might have.

At the end of the day, if you are not sure then it is perhaps best to pass.

Anthony Endsor

11:35 AM, 28th May 2015
About 4 years ago

Definitely get RGI if you do take them on, though to be honest, unless I knew the circumstances behind the CCJ and got some reassurance, I wouldn't touch them with a barge pole.

Mike McDonagh

11:59 AM, 28th May 2015
About 4 years ago

There have been numerous reported incidents of car hire firms, particularly abroad, who advertise prices inclusive of "fully comprehensive insurance" which have small print clauses to exclude "lighting, windows, roof, interior and underside of vehicle".
Many "victims" of these practices have refused to pay and ended up with ccj's as courts will only consider the facts rather than the underlying sharp practice.
I would ask them if they have any ccj's. If they lie, run a mile. If they are up front ask them for the circumstances and decide on merit. Good luck.

Sarah Pajger

12:29 PM, 28th May 2015
About 4 years ago

Thanks for your comments. The car hire company took him to court over a dispute which he didn't agree with. I have a ccj number does anyone know the best website I can use to search for info. Just want to very what he told me. My last tenant had no ccj and i ended up evicting her! I have spoken with 2 previous landlords who said house was immaculate and no arrears. Also the council are paying me £1000 incentive, 3 months rent upfront for a 6 month ast which I was going to serve with a section 21. I've had private tenants view the house but let's say it's not that sort of area! Full housing benefit will be paid to me with a tenant top up of £100 pcm. I suppose there is no safe bet in this line of work

Andrew Holmes

12:47 PM, 28th May 2015
About 4 years ago

Hi Sarah,

I have had tenants with no CCJs and they have left owing me rent, on the other hand i have a current tenant with a CCJ and the rent is paid on time every month and to the full amount.

I dont think its as simple as you have a CCJ so i will not rent to you, these modern times of quick credit and online CCJs means that the courts and bailiffs have never been so busy.

Get the tenant to do a full credit reference on themselves, experian do one where they can do it fro free, but it will have to be the tenant that does it unless you pay for an agency to do one. The tenant has obviously declared the CCJ, it is the ones that try to hide them that i tend to avoid at all costs.

The full credit check paints a better picture and will show previous addresses etc also, just in case there is any hidden secrets.

Ask them if they turned up to court to dispute the hire companies claims, they either did and the judge found in favor of the hire company or they never turned up at all, in which case they should of either paid the hire company after the judges decision or bothered themselves to go to court. CCJs can be defended and if you have a valid case can be thrown out.

Maybe take two months rent as a deposit, they will probably state that they can not afford that but it is what you are comfortable with at the end of the day.

Sarah Pajger

13:04 PM, 28th May 2015
About 4 years ago

Reply to the comment left by "Andrew Holmes" at "28/05/2015 - 12:47":

I did the nla basic check. Do you recommend the nla full check I think this checks employment references but they are in full housing benefit. I've done this for 15 yrs now, had 2 evictions on 6 properties but I still get the heebie jeebies when I hand the keys over!

Anthony Endsor

13:09 PM, 28th May 2015
About 4 years ago

Housing benefit + CCJ's = ????dum dum DUUUUUUUUUUUUMMMMMMMMM!!!!!!!!

In answer to your question I think I would say yes this is the least I would do.

Andrew Holmes

15:26 PM, 28th May 2015
About 4 years ago

Hi Sarah,

A full experian report will show number of credit accounts, available credit, out standing debt, over due accounts, missed or late payments, current banking details including over draft status, if they are on the electoral roll, CCJs, debt relief, bankruptcies, linked addresses and any linked fraud.

The tenant themselves can pay for this or as i said in some cases get it for free. If they refuse to do it or come up with an excuse then i always walk away from them, i use it as a filtering process to weed out the ones trying to hide something.

If they complete it and share it with you and the only thing is a CCJ which has been declared over a hire car dispute, then to be honest, with the previous landlords references it is not the end of the world. It is difficult to say if i would take them without actually meeting the person face to face, you do get a gut instinct for someone.

If you do take them put an additional deposit clause on them and a RGI if it makes you easier.

Another way to look at it is that you will never be more than 8 weeks in arrears with the rent if it goes wrong. DHSS pay direct to landlord once a tenant falls behind with the rent by 8 weeks. I have claimed it direct and by the time i withheld their deposit i was just a month behind. I have had working tenants walk away owing approx 4 months rent under the same circumstances.

Romain Garcin

16:07 PM, 28th May 2015
About 4 years ago

CCJ + HB: I agree with the other posts, just pass.

It should be said that being taken to court over a dispute and losing does not result in a CCJ being recorded if the judgment is paid within 30 days (iirc).

1 2 3

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Change to Universal Credit rent arrears payments

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More