PDA

View Full Version : Bad tenants and their credit rating



CoffeeCup
10-03-2006, 13:11 PM
When a bad tenant is finally evicted from your property is this recorded in some way on their credit history? i.e. in the form of a CCJ or similar

RichieP
10-03-2006, 14:38 PM
No. There was some lengthy discussion about the legalities and problems in setting up a tenant blacklist/websiste for landlords. The only way they get any 'bad' credit rating is if you take them to court for money owed and ask for a judgment to be entered against them.

johnjw
10-03-2006, 22:21 PM
CCJ's should be picked up by any decent credit check; also its usual and wise to check the tenant history by contacting previous landlords.

Ericthelobster
10-03-2006, 22:56 PM
CCJ's should be picked up by any decent credit check; also its usual and wise to check the tenant history by contacting previous landlords.Yeah, and prospective tenants always provide the name and contact details for landlords they've screwed over, don't they...?

CoffeeCup
11-03-2006, 02:05 AM
As mentioned in previous posts I'm new to the letting game. I've got to say 'what a minefield!'

If I buy a 400quid washing machine on finance and don't pay I can almost certainly expect to end up with my credit rating significantly affected.

Yet, I can move into a '000's of pound house, leave with '000's of pound of debt only to move onto the next property and do it all again.

Shouldn't tenants sign something equivalent to a credit agreement?

This way if they are using an address in their credit check which has a favourable rating at the start of the tenancy it certainly wont at the end.

Dirty Stop Out
11-03-2006, 07:59 AM
I suppose it's down to the landlord to make sure they aren't getting one of these "professional tenants" by getting a credit check done on them and getting references from ex-landlords before they get the keys. It's not difficult to screen a tenant, if they can move in straight away or they say they are desperate to find somewhere to live or they don't have any money for a deposit...that usually means trouble, simple....don't take them on and find someone else.

CoffeeCup
11-03-2006, 08:45 AM
I suppose it's down to the landlord to make sure they aren't getting one of these "professional tenants" by getting a credit check done on them and getting references from ex-landlords before they get the keys. It's not difficult to screen a tenant, if they can move in straight away or they say they are desperate to find somewhere to live or they don't have any money for a deposit...that usually means trouble, simple....don't take them on and find someone else.

Thats just the problem tho ... If I have an address that on the electoral register, couple of credit cards registered at that address which I've maintained then my credit check will come back fine.

If I default on my tenancy agreement and then move on, it just seems that these individuals can re-use the A1 credit rated address to con the next unsuspecting landlord.

P.Pilcher
11-03-2006, 10:22 AM
Which is why, should a tenant default, you take them to the small claims court to at least get a judgement which WILL affect their credit rating. Most commercial organisations follow this procedure automatically with bad debts - are we as landlords any different? - Yes I know that this is not necessary if you are regaining possession under a section 8 action!

P.P.

davidjohnbutton
11-03-2006, 13:35 PM
The only difficulty is that large organisations can afford to take their debtors to court because the fees are not paid out of personal pockets like if you are a landlord.

This is why landlords sometimes fail to take tenants to court because it is regarded as throwing good money after bad to take them to court, attend court and get the judgment, then enforce it.

I've got one that has cost me nearly £200 in fees 7 years ago and has paid £20 in that time - he makes applications with no fee because he is on low income - I have to pay the full fee. He wont let the bailiff in - roll on the day I am legally allowed to kick his door in and take his expensive stereo and his surround sound TV paid for using the money he has effectively stolen off me!

CoffeeCup
12-03-2006, 04:48 AM
That was what I thought - If you have little prospect of recovering the debt then why would you go to the expense of going to court. And so the cycle continues.

On a related matter .... Legal expenses insurance.

Could you please have a look at the following thread and give your opinion.

http://www.landlordzone.co.uk/forums/showthread.php?p=12985#post12985

Cheers