Blacklisted Tenants | Discuss

Welcome to the Property Forum where we can share our knowledge & experiences together to become better at what we do.

 Forum Terms & Conditions


Page not looking right? Please CLICK HERE to RELOAD

Enlarge/Change font size here

A A A

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —





 

— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_Related Related Topics sp_TopicIcon
Blacklisted Tenants
02/07/2012
4:51 pm
umar
New Member
Members
Forum Posts: 2
Member Since:
01/07/2012
sp_UserOfflineSmall Offline

HI, 

I have a couple which I know very well, I fully trust them and would like to provide accommodation for them. They have been honest and told me they are blacklisted, can you guys give me any suggestions why I shouldn’t ask them to be a tenants?

 

I’m a bit new at this and would like some advice please.

 

Kind Regards

02/07/2012
5:25 pm
LorettaWight
Member
Members
Forum Posts: 246
Member Since:
11/10/2011
sp_UserOfflineSmall Offline

wouldnt touch them with a barge pole.  there must be some reason why they were blacklisted. always be careful with tenants . this is a legal minefield mostly in favour of the tenant even if you own the property outright.  it becomes the laws when dealing with tenants.  get rid of tenants for breach of contract eg. non payment of rent, damages etc is a long expensive process.  when money is involved people change!

play safe and protect yourself. say no.   

02/07/2012
5:44 pm
umar
New Member
Members
Forum Posts: 2
Member Since:
01/07/2012
sp_UserOfflineSmall Offline

Loretta, 

 

Thank you for the quick reply ! sounds pretty bad. I’ll be sure to get a credit check done.

Another quick question if they are blacklisted and in your property, will this affect my credit rating? for example can I get another mortgage ?

 

Kind Regards 

Umar

02/07/2012
6:14 pm
LorettaWight
Member
Members
Forum Posts: 246
Member Since:
11/10/2011
sp_UserOfflineSmall Offline

credit ratings do not show all that a tenant is up to. like if the person lived at home between tenancies. or paid their rent.  I have a bad credit rating because I dont use credit yet I am the bank managers dream client. He makes a lot of money out of my savings. references likewise can be fixed.  it used to be attached to the premises but not any more, it is now the persons name , it shouldn’t affect your mortgage situation but to check, ask an advisor at the bank. They are there to help?   creditors chase tenants all over the place.  

you wnat as little problems as possible to air on the side of causion when dealing with tenants, when trouble starts it can take months to sort out, cost the earth, and give a lot of sleepless night . When it works well its great but do you homework beforehand.

good luck 

03/07/2012
12:30 am
PaulBarrett
Member
Members
Forum Posts: 2897
Member Since:
11/10/2011
sp_UserOnlineSmall Online

Don’t ever bother with a normal credit check.

ONLY  use a RGI credit check

£10 is all it costs for a tenant or guarantor if the tenant fails the check.

Then you have about 1 month to take up the RGI policy which covers you for nearly everything.

Still do all the other DD on the tenant.

A good one is to suggest they sign up for the free noddle.co.uk service.

They can then email you a copy of their latest credit file.

If you wanted to be belt and braces ask them to supply the CRA statutory reports from Experian and Equifax.

£4.00 is all it would cost them.

They could then scan the reports and send to you via email.

Plis do all the other things like employer, previous LL etc.

If at ANY stage they are resistant to any of these requirements, avoid like the plague.

You should suggest it would be a good idea that they obtain all this documentation on the basis if you decline them at least they will have lots of relevant info for the next LL.

They then shouldn’t refuse to comply should they if they aren’t wronguns!?

03/07/2012
12:44 pm
Tenant Referencing
Member
Members
Forum Posts: 252
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

Hi Umar,

 

We are starting to see a trend of alot of tenants being honest with potential landlords/letting agents now, especially as they are starting to realise that their landlords are working closely with Landlord Referencing Services.


This may seem like a silly question but have you asked them why they are black listed?

Their answer should surely give you a bit more insight into whether you want to take them on as tenants.

 

Have you used our Lifestyle Referencing Search?
It is completely free and our database contains over 200,000 bad tenants right across the UK.

 

A credit reference would be the next port of call (we would suggest that you use Rent Shield – our new national sponsors) but as Loretta has pointed out a credit reference cannot give you the full story, whereas a Lifestyle Reference can.

03/07/2012
8:47 pm
Aimee
Member
Members
Forum Posts: 6
Member Since:
01/03/2012
sp_UserOfflineSmall Offline

We have previously taken on Tenants who were also black-listed. The situation with this couple however was quite simply, they had run their own business for over 15 years (a small building company that had various contracts with a local housebuilding company). However when the crash happened, the housebuilding company were unable to fulfill their financial obligations with the smaller building company and the business was liquidated. Consequently, as a result of action also taken by the bank (Directors’ guarantees, et al) they lost their house and livelihood.

Both of the couple were able to go on and secure well-paid employed positions however and their take-home pay would cover the rent of the property more than eight times over.

Needless to say, both of them failed the credit checks and given the fact that they had older teenage children, had very little that they could offer in the form of a Guarantor. All but one of the couples’ parents were deceased, and the one who was still alive, was nearly 85 years old, and as such would be unable to act as Guarantor.

The Landlord was informed of the circumstances, including the documentary evidence of what had happened with the company. He confirmed that clearly their income was quite significant (as stated above – more than eight times the amount of rent), and that he would prepared to accept them, providing that they paid a bond of three times the amount of rent, together with a month’s rent in advance. That way, he should be more than protected in the event of their non-payment.

I have to say, these Tenants have been fantastic, always two or three days early with the rent. Keep the house immaculate (in fact they have made several improvements – with the Landlords’ permission of course) and have now lived there for over three years.

Even the Landlord has said that he was glad he decided to go with them, and not turn them down on the basis of their previous credit history.

On the other hand, we had a Tenant with a glowing credit history, who paid their initial month’s rent and bond and then failed to pay anything else, needless to say we went ahead with Section 8 Possession Proceedings and now have a CCJ against this Tenant, who was subsequently registered on this website, so that other Landlords can avoid her at all costs!!

I think you would certainly need to check just why they are black-listed before discounting them altogether. Perhaps as we did for this Landlord, take an increased bond, in order to try and safeguard yourself in the event that you are then unlucky and end up having to pursue S8 Proceedings at a later date.

04/07/2012
3:26 pm
wtf
Guest
Guests

If they’ve been blacklisted I wouldn’t touch ’em with a barge pole!

05/07/2012
4:45 am
PaulBarrett
Member
Members
Forum Posts: 2897
Member Since:
11/10/2011
sp_UserOnlineSmall Online

The problem with tenants like these is that they won’t qualify for RGI.

You cannot take more than 1/6 of deposit or rent otherwise you create a Premium tenancy.

This will be a nightmare to evict if you do not have RGI.

It could take years to evict them and they could live rent free all that time.

By then the property would be repossessed anyway unless the LL has enough to pay the mortgage for about 2 years!!

I would avoid any tenant on whom you could not obtain RGI on or a guarantor RGI

I lost a property by doing exactly what you did but was stitched up.

This was the days before I knew about RGI when I was still a very wet behind the ears new LL!

Never again.

What such tenant do is to find some mug LL prepared to take a gamble on them.

I wouldn’t risk losing a property again on a dodgy tenant who couldn’t pass a RGI check.

06/07/2012
7:25 pm
Aimee
Member
Members
Forum Posts: 6
Member Since:
01/03/2012
sp_UserOfflineSmall Offline

@ Barrett – our Landlord sought legal advice on the increased deposit and was advised that Premium Tenancies are applicable to the old Rent Act 1977 and Contractual Period Tenancies, and absolutely nothing to do with the modern form of AST.

07/07/2012
1:28 am
PaulBarrett
Member
Members
Forum Posts: 2897
Member Since:
11/10/2011
sp_UserOnlineSmall Online

Absolute rubbish I can assure you that there is an issue with Premium Tenancies

Just read a Section 8 notice and it will advise on when you could evict etc.

The advise you have been given is WRONG, plain and simple.

I suggest you go onto property118.com and read ann extensive post by Mary Latham where it will become clear to you how incorrect the advice you have been given is.

But no you go ahead if you think I am wrong.

But I can assure you that you would be setting yourself up for a mighty fall if it all goes horribly wrong, especially if you have some clued up tenants!!!

07/07/2012
6:58 pm
LyndonBaker
Member
Members
Forum Posts: 1805
Member Since:
11/10/2011
sp_UserOfflineSmall Offline

Why were they blacklisted? That is the most important question surely?

I have had tenants who have admitted that they have a CCJ for one reason or another and they have turned out to be excellent tenants. Usually these are ones who have settled their CCJs. I have found that those who are upfront can be, as Aimee has stated, excellent tenants.

08/07/2012
4:43 am
PaulBarrett
Member
Members
Forum Posts: 2897
Member Since:
11/10/2011
sp_UserOnlineSmall Online

I agree satisfied CCJ’s I would have no issue with.

Unsatisfied CCJ’s  would however be a problem for me.

One is looking for the financial probity and management of a tenant.

If they cannot aford to pay off a few CCJ’s they won’t be very bothered about you.

All a tenant has to do is obtain a tenancy and then stop paying.

It can take months to get them evicted, during which time the tenants have built up sufficient funds to move to the next mug LL

There are hundreds of thousands of LL that don’t use LRS and consequently those will be the mug LL that these sort of tenants target.

RGI is really the ONLY way to protect yourself from a tenant.

There are apparently 233000 new tenants every year.

You will find a tenant that doesn’t have these problems.

Don’t become a wrongun tenant’s mug LL!!

20/07/2012
2:08 am
Agus
Guest
Guests

There is no legal requirement for tneants to obtain a renter’s policy and a landlord cannot evict you for failing to do so. If he had made it clear that it was a requirement when you were applying to rent the apartment and required proof that you had done so before handing over the keys and included a provision in the lease that you must maintain it, then he would have a stronger case to insist upon it. But in your current circumstances, while good advice, he cannot insist on it.

20/07/2012
8:45 am
PaulBarrett
Member
Members
Forum Posts: 2897
Member Since:
11/10/2011
sp_UserOnlineSmall Online

Agus said
There is no legal requirement for tneants to obtain a renter’s policy and a landlord cannot evict you for failing to do so. If he had made it clear that it was a requirement when you were applying to rent the apartment and required proof that you had done so before handing over the keys and included a provision in the lease that you must maintain it, then he would have a stronger case to insist upon it. But in your current circumstances, while good advice, he cannot insist on it.

 

No you don’t understand the LL obtains the policy on the tenant.

From the RGI check being carried out on the tenant the LL has a month to pay the policy premium of £89.00

Any LL stipulates that RGI is a requirement before keys are handed over.

To keep RGI going a LL has only to pay the annual RGI premium with NO further RGI check required.

It does not have to be mentioned in a AST agreement.

If the tenant fails to pay rent you phone the RGI company and they sort everything out.

23/07/2012
9:05 am
Jakayla
Guest
Guests

As already mentioned, this is fine for tenancy agreements provided it is not classed as a contract at distance (i.e. if they haven’t seen the property). However, as you use the word ‘contract’ it’s worth expanding on this a little.Other contracts signed remotely are likely to come under the The Consumer Protection (Distance Selling) Regulations 2000. E.g. agents sending terms of business for signature by email, fax or mail. These would need to have a cooling off period of 7 working days which commences from the date the agent acknowledges receipt of the signed contract.Tenancy agreements are exempt from the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1997, but an agent’s terms of business are not. If an agent visits the landlord and gets them to sign terms of business away from the agent’s offices, then cancellation rights will almost certainly apply.

23/07/2012
3:14 pm
Stacie
Member
Members
Forum Posts: 41
Member Since:
11/10/2011
sp_UserOfflineSmall Offline

Like Lyndon I too have taken blacklisted tenants in the past, they have turned out to be fantastic and are still with me now.  

Sometimes relationship break ups can cause problems with unpaid bills and it isn’t always the guilty partner who ends up covering the cost; this is just an unfortunate mess that the person ends up in and some people deserve a break.

I would however want as much information as possible, before I decided on whether to take them or not and would of course Lifestyle Reference them!Laugh

Forum Timezone: Europe/London

Most Users Ever Online: 755

Currently Online: PaulBarrett
16 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

PaulBarrett: 2897

Mary Latham: 2194

LyndonBaker: 1805

David Price: 1681

Patricia A: 999

DATA CONTROL: 970

Member Stats:

Guest Posters: 2581

Members: 6477

Moderators: 6

Admins: 1

Forum Stats:

Groups: 1

Forums: 3

Topics: 4555

Posts: 31233

Newest Members:

siren66, lola, vali, dashingdave, oakleigh1, ruuthomes

Moderators: SamiiB: 455, News @ Tenant Referencing: 1613, laura: 15, Chloe: 107, lucybarr: 0, jaswhite: 20

Administrators: Paul Routledge: 3418

/* ]]> */