Hi. I have had a Hungarian family show interest inn of my properties, but have said upfront they are self employed with an income of circa £30k. They say they can prove income by bank and PayPal statements (which I have been told by european colleagues at work this is all that is done in EU), and they can also provide a guarantor.
Having paid already for a UK couple’s credit check (which failed) I am loath to keep on paying for applicants when a failure may affect my landlords insurance (as stated in the credit check report).
So, my question is this, can I run a credit check on the guarantor but have the applicant named as tenants on the rental agreement?
Thanks for any advice!
you mean they failed a check and you still want to take them on??
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Hi there, sometimes - unless you have a particularly high risk threshold and deep pockets - it is better to move on from a tenant/s that ticks so many of the boxes on the risk front. They may be able to prove income for last year, but what about the 6 months minimum that they will be renting from you? They can’t guarantee that income. Credit checks will look for rent being no more than about 40% of the prospective tenants monthly income. Avoid spending more money on what are already high risk tenants and keep looking, you’ll be glad of it a couple of months down the line.
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Hi Scott, yes, absolutely. In fact, this is what I’d recommend doing.
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Hi Colin. I think that they would fail the credit check due to being self employed, but if they can prove £30k income I am comfortable they can afford the monthly rental. I did pay for the first couple who applied and they failed. This is a different family, but though if their guarantor passed the CC it would be more of an assurance.
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scott4 I get it… I have been self employed for 50 years and have accounts for every year. A guarrantor gives peace of mind