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Imagine you have a potential tenant with good rapport, friendly, great communication, stable job, can easily manage to pay the rent, someone who ticks all the boxes... except 1. They have a CCJ!
What would you do in this situation? Would you accept that everyone has made mistakes in the past and ignore it, or would you find another tenant? Interested to hear what the tribe would do.
Depends on the CCJ - why, how much, who to etc.
But generally, I agree with some other posters here that the decision about whether to take a tenant or not is guided by qualification for RGI or not
If the CCJ prevented the would be tenant from qualifying from RGI and I had a ready alternative tenant that did qualify, the decision would be very easy.
Nah, wouldn't do it. I have had to take people to court because they failed to pay. TWICE! It's just plain stubbornness and they will make your life miserable in order not to pay. Avoid, avoid avoid.
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I had ccjs which are now paid. I have always worked and paid my rent. Unfortunately the letters were going to an old address which i lived at with my ex partner....i got a phone out for him in my name and im sure you can work out the rest...this does not mean im not trustworthy so i dont think you should disreguard people with ccjs or at least paid ccjs. Just because i made a mistake once doesnt mean i would do it again!
What an interesting topic for discussion.Tenant referencing is not an exact science. There are a few legitimate reasons people could get a CCJ although the fact that the debt has not been paid off is a cause for concern.Last year, one of my non-paying tenants was a bailiff and I got a CCJ against him. He had split up from his wife, moved in with a new girlfriend, and did not think he was liable for the rent, even though he had not been removed from the tenancy agreement. The judge ruled that he was liable. Despite this, he shouted at my advocate that he would prefer to get the CCJ than pay towards a roof over his ex-wife's head - even though she was looking after his four children! He thought this was more important than the fact that having a CCJ would potentially affect his job as a bailiff.He never paid up the rent arrears. My approach would be to find out what the CCJ was for and why? Were there mitigating circumstances - of which the above were clearly not? If no reasonable explanation, I would avoid that tenant.The best way to never experience a bad tenant is to never let one into your property in the first place. Wait for a more qualified tenant to come along.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I agree with Vanessa that it depends on the circumstances of the CCJ. If it was from 20 years ago and they've been making steady payments to clear the debt, that's a good sign it was a past mistake that they've learnt from. One other thing I've heard is that CCJ's can sometimes remain on someone's file even if they've paid it off (although not for very long) but it's worth just checking with your tenant in case it's recently been cleared but not updated- they'd obviously need to provide some kind of evidence though.
I have a tenant Who has a CCJ. She was fully upfront about it and it was due to a recent divorce. Previous landlord gave an excellent reference. Has now been a tenant of mine for 2 1/2 years. Sometimes bad luck hits and i do like to give people a chance.
If you are in a position to take a risk on an otherwise good tenant and can afford to pay the mortgage if eviction is required then why not!?
Of course if the tenants can't qualify for RGI maybe a guarantor could!?
Personally I couldn't afford a rent defaulting tenant.
So unless a guarantor can be used who qualifies for RGI I would have to say NO!
CCJ's should drop off credit files even if unsatisfied.
If a CCJ is paid then a Certificate of Satisfaction is required from the court to amend the CCJ entry to show it as satisfied.
Few people seem to understand the damage a CCJ can have on future financial circumstances.
If they did they would move hell and high water to ensure they didn't incur one!
Any credit provider or insurer assessing the probity of an individual will wish to see zero CCJ.
Underwriting requirements are far more rigorous now that credit is not given away to anyone who can sign their name
CCJs are interesting credit issues as a lot of water has gone under the bridge before someone gets one. With that in mind there can be many reasons why someone would have one some very legitimate and genuine and some just plain stubbornnes. Understanding which category your prospective tenant falls into is very important.
As other posters have said, finding out why is your first point of call, this will give you a feel for the type of person you are dealing with. That being said some people lie, remember that, so no matter what they say, ask for supporting evidence to back up their claims.
One thing to remember, because of the way data is kept and released to certain industries, the type of credit check that you will have for the tenant will be limited so I find that when our check reveals something that may be of a concern it is always a good idea to then ask the tenant to produce their full credit report. This can be done by them signing up to Experian (Credit Expert), Equifax or the free services Noodle and Clearscore. Tenants can also obtain their statutory report for a payment of about £2.00.
These reports once obtained give you far more information on the type of person you are dealing with. They show you how leveraged and also what type of payer they are, all of which is perfect information when making a decision to let. Whilst your credit check should show previous addresses the full report will also show financial associations which could also indicate if you are going to end up with more tenants than you bargained for.
All this information can be extremely useful but you do have to know how to read and use it, context is key.
Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk
Agreed, depends on the CCJ
Hi Adam, this is a great question and one that we get asked alot at Tenant Referencing UK. As others have quite rightly pointed out, the best option is to reference a guarantor for them. Rent Safe UK can offer you a great range of rent guarantee and legal expenses policies (which do not require a deposit to issue) - please see: https://ow.ly/HKVg308kAGnIf you're not looking to obtain RGI (although I would always advise to take it out on ANY tenant, as anyone's circumstances can change in a split second; it only takes one tenant to bankrupt you) then their landlord reference is worth its weight in gold. This is where our extensive, 7 year old Tenant History database comes into play; giving excellent tenants who have poor credit the chance of better homes, as well as preventing the rogue tenants from moving around running up arrears, destroying property and causing anti socialbehaviour. Please see: https://www.landlordreferencing.co.uk/lif...ferencing/
Pro-active landlords need to ditch the out-of-date 3 point referencing and adopt our 9 point referencing, for absolute peace of mind. Please see: https://www.landlordreferencing.co.uk/welcome-landlord/