This is my first buy to let property, prospective tenant is a single mum(25) of two children 1 and 3. We told her that it would be subject to tenancy referencing that would be carried out by upad. As she is on housing benefits she would also require a guarantor which her father agreed to act as.
We have just received the result of the credit checks and hers is showing an unresolved ccj from August 2010 and a credit score of 100 and she has also failed the affordability check. Her dad who is to act as guarontor has passed the credit check. She never mentioned the ccj when I told her that he let was subject to one. We are also awaiting references from her current landlord.
Initially the idea was to rent to a working person only. The property is only a small two bedroom house with rent being £525 per month so after speaking to an agent they said a hb person can sometimes be good as they don't tend to move so often. I asked if she would agree to get the housing benefit paid direct to us which she said she would prefer. I think she is entitled to £475 per month hub so would need to find £50 per month.
What are people's thoughts of taking her on with her ccj and poor credit report even though her dads appears ok. Also if the council pay the £475 and she defaults on the make up pay how will difficult would it be to get possession of the property?
Part of me thinks that if we can get paid directly from the council that is good but am a bit nervous about her bad history. Also how easy/successful is it to get the guarantor to pay if she defaults.
Thanks in advance