Responsible Landlord Scheme

[armin]

I am a freshly re-baked landlord, used to be a live-in landlord, this time I am going to let the whole house outright and I want to do it right from the get-go.

 

I am working towards becoming acceptable to the SCC Responsible Landlord program, Saturday I am getting gas and electricity certificates, have EPC, aligning some appliances with repair plans.

 

I have now decided against using an agent (I repeatedly asked for the terms of conditions to be emailed to me prior to contemplating signing anything and they dragged their heels), I figure the £50pcm are better spent towards appliance repair plans and landlord insurance.

 

However, I am somewhat stumped for the landlord insurance quote I have received would require tenant background checks performed by either Equifax or Experian.

 

Correct me if I am wrong, but is that not a catch-22? Could someone who'd receive SCC benefits towards housing expenses actually pass those checks by these companies?

 

Or is the emphasis of these background checks on reliability and reputation and less about credit situation?

 

Please, can someone provide some insight into this? Am I wasting my time trying to become a 'Responsible Landlord', should I just go the no-DSS route like so many others?

 

Your opinions would be greatly appreciated!

 

Cheers,

 

-Armin

[Leah-Lacie]

It is possible for someone who is on benefits to pass credit checks, but I'm not sure if they would pass it when it came to this situation. I know its possible to get a contract phone, a catalogue, a credit card etc etc when you are unemployed though.

[armin]

Thank you for your reply, Leah...

 

Does anyone have, or knows someone who has, first-hand experience going through tenant background checks with those companies?

[Tuns]

Hi Armin

 

I'm a landlord and I am in the Responsible Landlord Scheme although I know there have been changes to the council department running the scheme so I am not sure what shape it takes at the moment.

 

Re the insurance. Are you talking about rent guarantee insurance as opposed to buildings insurance?

 

I have used different organisations for credit and reference checks ranging from about £10 for a credit check to around £25 for a full reference check.

 

Rent guarantee insurance (which I don't take on all properties) would require they pass the check before the company will take the risk. However they will usually accept a guarantor who themselves would need to pass the reference checks.

 

You may find (as I have) that taking HB tenants can increase your buildings insurance and double check with your mortgage provider that you have permissions to let and to which type of tenants.

 

Most of my tenants are professionals but in a couple of properties I have taken HB tenants but only under a council scheme where I get the rent paid directly to me.

 

Some landlords specialise in HB tenants and know the system inside out and obviously make decent margins on it as they may have paid less for the property in the first place.

 

Other landlords find the whole HB thing more hassle than it is worth!

 

Whichever route do your homework - as you obviously are and consider joining one of the landlord associations so you have access to expert help and legal forms etc. You can also do your references through them and sometimes get a discount on the deposit schemes.

 

In my experience finding the right tenant is the key, set things up properly and being a good landlord generally means low void periods.

 

Good luck!

[Delboy786]

Hello Tuns,

 

Some great advice.

Thanks

Best wishes

Al.