HOW DOES YOUR TENANT SCORE. A LOOK AT CREDIT SCORING AND SOME COMMENTS ON ID FRAUD
But what’s really behind the scoring process? Why do some good people get low scores when their credit file is searched?
And why do some financially stretched people get good scores? What other information should landlords ask tenants for in order to flesh out the scoring process?
You can do a basic credit reference check on a tenant for less than £15.
Normally, the credit referencing company provides you with a form on which you provide the full name and date of birth of the prospective tenant as well as addresses over the last three years. The tenant will have to sign to give their consent for you to do the credit check.
However, someone else who is highly indebted with lots of accounts can get a good score just as long as they are just meeting their repayments.
Another group with low scores are foreign nationals who have recently moved to the UK from a country with no credit data history.
COMMON SENSE NEEDED TO INTERPRET CREDIT SCORES
2) that they can afford the rent and
3) that they have honoured past commitments
Even if you use a letting agent, you should check the agent is doing this kind of tenant vetting properly and using their professional judgement. Many don't and I know many landlords who got a tenant from hell from a letting agent they thought they could trust.
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2) entitlement to work in the United Kingdom (Non EU nationals only)
Landlords should take care to ensure that all post for them is redirected to another address. This should include final utility bills. And never, ever leave any personal documents in a property because a bad tenant who is intent on fraud can use bills addressed to the landlord to get credit in their landlords name and set up false accounts.
If you buy a property which has been repossessed you'll need to make sure that whoever repossessed it changed all the locks. The same goes for any property which you buy which you think may have had previous occupiers who were not model citizens as you will not want them letting themselves back in.
This is a brief guide to a complex subject. If you need more information please get in touch.
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Copyright 2014 David Lawrenson. This article must not be copied or re-used without the author and copyright owner’s prior permission.
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