I’m just doing tenant referencing, the prospective tenant is a student in receipt of a trust fund which he can draw on as needed. How does he show this on the credit/referencing check , or does it matter anyway as I’ll be looking for a guarantor anyway.
Thanks
have you taken 6 months of bank statements for all accounts?
No , when they complete the referencing/credit check is that where they need to show all the statements. I’ve never completed one so I’m not sure how much info can be shown or is it just pulled from a credit report?
It’s a completely separate stage of the application. I never reference until I have checked their financials personally. Waste of money otherwise in many cases. I ask applicants I’m serious about to provide copies of the last 6 months of bank statements for any deposit and savings accounts they have so I can see regular spending habits and cash buffers. I also ask for 6 months of payslips if they’re employed (which yours isn’t).
In your case, you’ll want to see a regular income from this trust fund and how much he uses of it each month. Other things have have been red flags for me from thsi process in the past include regular gambling payments, sizeable loan payments, repayments for loan consolidation companies, large payments from relatives/friends topping their balance up each month, payments for a car they don’t own (turned out their ex apparently stole their identity to take out the loan in their name - yeah right!) pet insurance payments for people who claimed not to have a pet!
That’s really useful thank you. I’m assuming as I’m getting a guarantor, if they pass with flying colours it shouldn’t be an issue about tenants income really anyway. obviously it’s ideal if I don’t need to rely on guarantor.
guarantor should be a UK-based homeowner and you should get bank statements for them too. Same checks for them as for the applicant because you’re potentially going to have to rely on them paying the rent.
The income from the trust fund won’t be included in the credit reference as it is not income, but rather him drawing off available investment/savings. Credit referencing doesn’t check savings.
You can however, do your own checks as @tatemono has suggested
Thank you, I’d already done the credit checks and waiting for the results to come back but I think as you say I can always ask for more information and will do so. Thanks you.