Landlordreferencing.co.uk – Forum

The law is stacked against the LL in the UK.

The only way to protect yourself from a wrongun tenant is to carry out full DD and also obtain RGI on the tenant or a guarantor.

Also to obtain LL contents insurance to protect against the tenant stealing, criminally damaging at the property.

If you do not have RGI nor contents insurance you are exposed to a wrongun tenant.

Only RGI will provide the rent money in the event of a tenant refusing to pay.

This effectively means that very few LHA claimants will be able to qualify for a tenancy with a LL who has these requirements.

Only LL that have lots of money can afford not to have RGI.

Therefore if you take on a tenant that does not qualify for RGI, nor on a guarantor you the LL are exposing yourself to massive losses.

You have to decide whether you wish to risk your personal financial circumstances on a tenant on whom you are unable to source a RGI policy.

Personally after being badly burnt and being ignorant as to the efficacy of RGI, by wrongun tenants I would not countenance taking on any tenant that failed RGI checks.

This means that for most LHA claimants my properties are not available.

As more LL take a similar view there will less rental property available for these tenant type.

Until we arrive at a situation whereby a tenant may be removed from a property by police once they are perhaps 2 months in rent arrears  and arrested for theft and criminal damage then there will be less property avaiable to any tenant who is unable to obtain a RGI policy.

LL with limited resources CANNOT sustain the level of losses that these LHA claimants cause.

The total unintended consequences of these circumstances is is that there will be less property available to rent by the less well financed of tenants.

Sharon Carmichael said:

Hi Paul,

Well, I have been renting to DSS tenants in some of my properties for over 15 years now and, yes, you are right, I would not get Insured and therefore, never have tried.  However, I have found that for the majority of them, they are keen to keep their properties and as a result, they pay their rent.  That is not to say that I have not kissed quite a few frogs but my gains are far greater than my losses due to the close eye I keep on the tenants and their finances and the fact that I am a very "hands on Landlord".  Therefore, I dispute that all DSS tenants are "wronguns" (although, indeed, some are)

When things do go wrong, however, everything is most certainly stacked against the LL and this is why checks are incredibly important prior to any tenant going into a property.  

Like Stacie, I have had matches on the LRS system and felt extremely elated.  I have experienced the "warning do not take" match as well as matching the prospective tenant with the same Landlord the Tenant had stated was their Landlord thus proving their story which is also great.  I have received both good and bad references about tenants and the nice thing is to actually talk to their present Landlord and get the up to date information about them, whether good or bad, and then I can make my decision as to whether to take them on a entirely informed basis.   

I have also received numerous calls from prospective landlords asking for references for tenants that I have in occupation or recently have had in occupation – this system WORKS and is the best reference as far as I am concerned as it is a lifestyle reference – something which generally is a testament to the way they behave and their character and is therefore a first class indicator – whereas, financial references tell only a small story and are not indicative of what will or may happen in the future as jobs are no longer for life.

Keep up the good work LRS and I will keep supporting you – as a footnote, I have had a brilliant response to my sponsor advert and is worth every penny – thanks. 

I think the issue is; if you can afford to cover things on the rare occasions that your DD has failed then fine.

If you cannot as a LL afford such a circumstance then RGI is a vital necessity.

All my LHA tenants have turned out to be wrongun along with one PRS tenant.

Losses caused by them all

£250000

I hope this person never migrates to my area of London.

As others have said Well Done Landlord Referencing.

This is what these a——-s as tenants rely on on; a LL not being a member of LRS.
Pity the poor old LL who has taken on your miscreant; he will end up being stitched up just like you and I and many others have.
You would have thought that LENDERS would wish to be actively involved in publicising LRS as it can go along way to mitigate against BTL mortgage arrears; effectively preventing wrongun tenants.
Ideal place for that would be the advisory details sent out with a mortgage offer, especially the bit about your home may be at risk if you fail to keep payments up!!