Credit Checks?

[Garage_Doors]

My son is going to rent a house as a room share at uni with some mates and we as parents are acting as Guarantor for his rent.

This will be the second year and he is moving having found a better house.
However the Estate/letting agent is wanting to charge each house-mate a £200 non refundable charge for a credit check on each house-mate & Guarantor.
we did not encounter this last year.

I have no problem with being checked but i do not see why we should pay for their risk assessment.

Is this common practice?

 

[therealdsg]

Very standard throughout Brighton - do the referencing checks include the tenancy agreement, deposit protection, inventory, VAT, etc?

 

[mune ni kamome]

This is normal practice. I paid £190 so charge is about right too.

 

[sparkie]

Never heard of being charged for a credit check. A criminal record check, yes, but not one for credit. Sounds like sharp practice.

 

[The Wookiee]

It only costs them around £15 try and negotiate the fee. Failing that, try and find another property through a private landlord, normally they don't do checks

 

[Billy the Fish]

Any letting agent will charge you for the checks if you need a guarantor. Robbing bastards the lot of 'em.

 

[beorhthelm]

£200 sounds steep, i recall being asked for £60 in London many moons ago.

 

[Uncle Spielberg]

My son is going to rent a house as a room share at uni with some mates and we as parents are acting as Guarantor for his rent.

This will be the second year and he is moving having found a better house.
However the Estate/letting agent is wanting to charge each house-mate a £200 non refundable charge for a credit check on each house-mate & Guarantor.
we did not encounter this last year.

I have no problem with being checked but i do not see why we should pay for their risk assessment.

Is this common practice?

This is taking the piss. You can get your own credit file from Credit Report and Credit Score with Toll-Free Support from Experian for £ 5 I think.

 

[Billy the Fish]

It's not a proper credit check, they write to your employers to prove that you can cover the rent.

 

[sparkie]

It's not a proper credit check, they write to your employers to prove that you can cover the rent.

That's astounding. I would have thought that your employers would be breaking the data protection act by discussing such things ??

 

[Don't get me started]

You can always say you don't want to be a guarantor and offer a 3 month deposit. That's what they do for students from abroad.

 

[Giant Seagull]

Rented 2 different houses in 2 years in Portsmouth and never came across this, although the first year the agent charged us £120 for their 'services'. Second year they were far more proffesional and didnt charge us a penny.

 

[Kumquat]

That's astounding. I would have thought that your employers would be breaking the data protection act by discussing such things ??

When I rented my last place they asked me to supply a letter from my employer that confirmed a) that I did work for them and that b) I earned what I claimed. At my current place they checked it out themselves. So it depends on the agency I guess. But totally above board and legal.

 

[Colossal Squid]

It's legal and standard practice, but it doesn't make it right. As has been pointed out this money never goes on actually doing anything much more than writing to your employer to confirm you do work for them and have a regular income. It's incredibly easy to forge if you so wanted.

Best bet is to demand an explanation as to what the £200 is actually needed for and if/when they refuse just offer to provide them with your credit file history from Experian or Equifax (available online for about a fiver).

Failing that, if you can afford it, pay for 3 months up front and avoid the fees altogether. The money grabbing leeches will never turn down a lump sum.

 

[Seagull27]

I've never come across this having rented as a student in Bristol for 3-4 years. Though some agencies have charged 'admin fees' of about £100.

 

[drew]

Came across this when we were going to let my late mothers house but just at the last minute accepted an offer for purchase. The letting agents claimed for their refund of the credit references thay had gotten for the prospective tenant which they had to refund to him. They said it was £300ish and I queried it. They confirmed all it was was the cost of the credit check which was about £10 plus sending letters to the tenants bank, employer and previous landlord. In other words, their charge is little more than extortion.