You sound like a tenant to me as you said "the only good landlord is a dead one " You want to be dead. ? Help is out there private or NHS Please seek it now. .
2 Likes
Andrew dont be a desperate landlord .That is when you will make mistakes. Council tax you pay in void periods .and reference checks are all tax deductible as a landlord.
1 Like
I look at Bank Statements
I went to an LA meeting and heard about it there. I have never looked back.
Some people are paid in cash and don’t have payslips
You can verify a lot. Assess whether they are working, paying rent, have gambling or drinking habits.
Do they live within their means
It’s also free so I don’t have to pay anything to look at them
Landlords may allege the tenants pay their rent but the bank statement will show if they do or not
1 Like
I’ve only ever had to request them once when other financial information was insufficient, but although I agree that requesting them is intrusive, I think its sometimes justified as a means of establishing a pattern of income and financial commitments. If it means that someone could be offered a tenancy who would otherwise not pass referencing then I don’t think it should be ruled out.
I can’t agree that this would be all that is needed if there was some evidence or suspicion that a large chunk of the prospective tenant’s income was being spent each month on a car loan or child maintenance payments or paying credit card debt or…
2 Likes
I’ll agree to disagree
In the words of Evelyn Hall – “I disapprove of what you say , but I will defend to the death your right to say it.”
I have had tenants with gambling issues and when you don’t get rent and have to pay to get a tenant out it all adds up. Why would I put myself at risk when I don’t have too?
Landlords are not honest all the time regarding referencing as they want to get rid of troublesome tenants. You are giving your investment to someone in trust. Why not do everything you can to protect your investment?
Knowledge is power.
The last time I asked for a tenants statements he alleged he was paid cash abroad ( had been out of the country for 12 months) and so did not have any statements to provide. He could not provide references because they were in Cypriot etc etc.
When he gave me his name I googled him to find out he had a compulsory dissolution from Companies House 12 months earlier. I didn’t need to pay for a reference check. I didn’t waste my time with them.
You can find a lot out about the person you are renting to because of the internet. I use social media ( as advised by a well respected solicitor) too. Some people would class that as intrusive
I would say I am protecting my asset.
It’s the best advice I have been given
I have never paid for a reference check and am not about too. I can glean enough from what the tenant does or does not say
Why go into something with your eyes wide shut?
4 Likes
The interview and any other background checks the landlord conducts.
Yes but what happens if 20% is going out on income support or chunks are deducted from salary in unpaid council tax bills?
I have only identified that on bank statements. I have still rented to both persons because they have been transparent, they have learnt to live within their means.
For the chap with unpaid council tax bills of 2 years I learnt that he just needs more support in managing his finances so I have provided that.
If I know what the issues it’s for me to decide if I want to take the risk.
For those not so transparent, there’s the door…
2 Likes
You seem obsessed with the idea that landlords should only be allowed to check income. Why?
1 Like
The problem is that with current rules landlords could be stuck with non paying tenants for 18 months. Therefore a tenancy is effectively type of finance agreement and the landlord needs to continue to provide the service irrespective of whether a tenant actually pays. Apply for any loan or mortgage and you will have to supply outgoings and bank statements. Outgoings are a key factor in determining ongoing affordability.
Most landlords would much prefer to not have to do the checks if they were able to evict non paying tenants in a timely manner but the rules mean that landlords have to be very cautious who they rent to.
2 Likes
The issue is that most affordability calculations are worthless because they basically just check whether the tenants gross income is a multiple of the rent. However, its the available income that matters, not the gross income.
By all means carry on doing what you regard as fair and non-intrusive, and I can’t disagree with you on that score, but its unhelpful to tell other landlords that they shouldn’t be protecting their asset when some circumstances need more than a regular referencing check.
7 Likes
Looking at this discussion from another perspective, would you approve of a tenant getting to see your full bank statements before they start renting from you? After all, assuming that there was a mortgage in place on the property that relies on the rental income to pay, if the landlord was to have a gambling problem (an example used further up the thread) then they may default on said mortgage payments and potentially render the tenant homeless as well.
I appreciate this is an extreme example, but surely the desire to request information as intrusive as full bank statements should be reciprocated in kind by the other party. I have a feeling that not many landlords would be as willing to be openly transparent as they expect their tenants to be.
3 Likes
The references required are up to a landlord but ultimately it’s an affordability check. If you dont want to provide what the landlord wants then you need to look elsewhere.
I have no interest in looking through tenants details and would only ask if they would otherwise be rejected so for where I’ve felt the need to request them I am doing them a favour by taking the time to do further checks to try to offer them a tenancy. There are normally plenty of applicants. If they dont want to do that then that is fine. I would have no issue with parts being blanked out that were sensitive provided it showed that they manage there money in a reasonable way.
4 Likes
Simon
Full bank details for landlord would be completely unnecessary. I would have no issue in showing mortgage payments are up to date. In the event that a landlord doesn’t pay the mortgage the tenant can ask for their rent to be used to send to mortgage provider so they keep their home.
1 Like
The landlord will already have had to show far more evidence of their financial circumstances than is being discussed here to their lender in the first place to secure the mortgage. We are talking about handing over an asset worth hundreds of thousands of pounds to a complete stranger.
7 Likes
Of course its discriminatory. That’s the whole point of it. To discriminate against those who you reasonably believe may not be able to pay. To do anything else is irresponsible.
7 Likes
If i know a prospective tenant spends a load of money on drink . They weill not get one of my places
1 Like
If i guess the tenant cannot pay the rent do you really think i would rent to them ?
2 Likes
I will be transparent I will tell the tenants how many children I have. My shoe size. Where I live now . What businesses I run… They do not need to know my income <I am not renting Off them , They are renting off ME If they do not want to give me the info I ask for … then Goodbye
2 Likes
Grumpy, are you a tenant or a landlord ?
1 Like