If someone came to the UK in Feb 2022 and has been in a full time employment via a staff agency (kind of self employed?), is it going to have enough credit history for the reference checking?
It depends if they have taken out credit, there will be nothing to check otherwise.
They have normal UK bank accounts, mobile accounts and they have been renting so I guess there is definitely something checkable?
Can check that bank account exists and mobile (if monthly contract),
Ask to see bank statements yourself.
I did see the bank statements myself before the viewing. But I just wonder whether there is any potential problem for the formal checking.
It will just be a very limited credit history.
Incidentally was there increased interest over the weekend?
I referenced a potential tenant with similar circumstances. They failed although the referencing agency recommended I could proceed with a guarantor. I didn’t and accepted them anyway. 6 months in and so far so good.
Can I ask why did they fail? Is it because they are relatively new in the country?
When you said similar, do you mean they’re also employed via a staff agency?
Just a viewing and a holding deposit is paid after seeing the bank statements myself. However, I wasn’t aware that the tenant is employed via a staff agency so it’s kind of self employed. Had a quick chat on the phone and he seems nice. Reference is under way and do hope they don’t fail the reference checking otherwise I can’t get the rent guarantee insurance…
They actually failed on affordability. They have to earn an annual income of 30 X the monthly rent. They were a little under although they had a healthy amount of savings which wasn’t considered by the referencing agency. They were employed with permanent contracts. Credit history came back with no faults although it can only go back one year which is time living in UK.
That’s “interesting”!
With one tenant earlier, the agent I was using used Rightmove for reference checking and they only checked the savings without checking income at all. The tenant had enough savings (more than 30X of rent) so the reference came back PASS. I didn’t go with this tenant.
I used NRLA for referencing.
I am using OpenRent; not sure which company is actually doing the check though.
Do you know which company NRLA uses for reference?
Btw, were you able to get rent guarantee since they failed the affordability?
I think the NRLA have their own referencing department. I was able to get Rent Guarantee through my landlord insurance which is not with NRLA (Insurance was arranged when I exchanged contracts so before I got the tenant) However, they will probably ask questions if i have to make a claim and may not pay out. I will try to fix it at renewal in 6 months.
Sounds like it’s effectively no rent guarantee as almost all insurance companies ask you whether you have tenant referenced checked especially on affordability before you buy the insurance.
Whe I drive I will look in the mirror at interval, mostly I look foward, relying on credit history is like driving with only the mirrors.
Credit history can be a sound indicator of someone’s attitude to debt, but agreed it should only be part of the assessment.
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