Renting while bankrupt

[blackrain]

I am facing bankruptcy in the new year and will also be looking for anew home. I'm basically going to be looking for a single studio/bedsit sized place on a bit of a budget.

Does anyone know if

a) If I go through a private landlord they would still do a credit check?
b) For budget accomodation would a credit check even be likely if it was with an agency?
c) If I have to tell a new Landlord I am bankrupt?

The Official Receiver may tell my current landlord I am bankrupt but I'm not so sure I have to tell any future ones. I have not missed any rent payments and will be able to get good work/landlord/character references but no way would I pass a credit check.

I would also have problems getting a bank reference after gong bankrupt but again, would a private landlord want one of those? What exactly does a bank reference have in it anyway?

Cheers, Blackrain

[LondonPam]

From what I have seen most letting agencies will do a credit check on you. Most of the forms ask if you have been/are bankrupt. In some cases they let you pay 3 - 6 months deposit where you have bad credit or are bankrupt. Unfortunately that is often way to much for most people. Private individuals seem to be less stringent with credit agencies. My daughter rents privately (she isn't bankrupt) but the guy didn't bother with a bank statement just a work one.
Good luck.

[Gruffle Gaw]

London Pam is right, but if you can provide a guarenteur they may let you rent anyway.

[blackrain]

Thanks, will be looking at the budget end of the market so will most likely avoid agencies anyway. House share might be the easiest way. Or someone who just wants to rent a room out...

[Man on Top]

Hi, as a discharged bankrupt in the past and now a landlord myself. The situation from both sides is:- you need to be looking to rent from a private landlord and make sure that you have references from a previous landlord or your employer that he can check up on. it is very unlikely that he will want to do a credit check on you. if yoou go through a letting agency, they will do a credit check and oops your stuffed.
You will have to be a little careful with the private landlord because he will want a regular payment set up via a direct debit. This will be a problem for you as bankrupts can have bank accounts BUT with LIMITED use, some of these accounts will not allow payments with direct debit. You could always get your empolyer to pay the rent for you if that possible.
hope this is of help. good luck. ps barclays and Royal bank of scotland will give a bankrupt a limitted bank account.

[luweep]

im having my house repossessed and am lookin for a rented house, my husband went into a letting agency and had to pay 300 pounds to get reference checks even though we were given money to pay 6 months rent in advance all the staff at the letting shop said there would be no problem in us letting this house in the end we were turned down so the 300 poundwas wasted, my husband said to them he didnt want to hand over the money if the end result would be us losing out and the shop all said no problems would arise only if we had a criminal record which we obviously havent, so we were ripped off 300 pounds and nowhere to live so why landlords will you not give people a second chance it makes me sick.

[Ed999]

You don't say why you were turned down, but presumably you failed a credit reference check on financial grounds.

This would not normally happen unless you had county court judgments (CCJs) already registered against your name. Has the mortgage repossession order already been made? They are not usually registered until a month has passed since the possession order was granted.


The agency's fee is a simple matter of contract. What did you agree with them as to their fee?

To claim the fee back in court you must be able to prove - i.e. produce evidence - that the agent stated that he would refund your fee if he did not secure the property for you.

Your word alone may be challenged. Can you produce a witness to the conversation in which that representation was allegedly made? Is there any written evidence that it was made? Can you provide independent evidence as to WHEN it was made?

If the landlord's agent made a representation, before the contract was entered into, that he would refund the fee if the tenancy was not granted, such a representation (which is usually a verbal statement only) can be a term of the contract - but ONLY if the unwritten statement can be proved by you to have actually been made! And ONLY if the statement was made BEFORE the contract was signed.


You have to prove not only that a representation was made, but also the precise terms of it.

You must prove that the agent said both (a) "he would obtain the tenancy for you if you gave him the money", and (b) "he would refund the money otherwise".

If you can do that, you can sue for return of the money with some chance of succeeding. But litigation is never straightforward; there is always a possibility of losing the claim.



Advice & opinions on this forum are offered informally, without any assumption of liability. Use your own judgment. Seek advice of a qualified and insured professional if you have any doubts.

[Nightmare4banks]

luweep,

1.To begin with,I would complain about the 300 pounds fees which seem very excessive.These agents make more money out of the referencing than actual property mismanagement - oh sorry I mean property management!lol!


The maximum fee I would put on referencing etc is around 75 quid.

2.Personally,I am not trying to be unkind but very blunt and frank with you - I think you were foolish to go to agency in the first place.This is because agents use the credit reference techniques in considering potential tenants - which is rather unfair.

3.You would have been much better off in responding to a private owner's ad in a paper or online as these ads tend to be used by private owners who are much more flexible and loathe(sorry no offence against letting agents!) letting agents including myself within limits.

4.By the way,I am a landlord and would have no objection in letting out
a property to someone in your situation.

So,please do not tar every landlord with the same brush as there is a distinct difference between a fair landlord/agent and a rip off one.

[Ed999]

If luweep agreed with the agency for them to provide luweep with certain services, in return for a fee, which luweep paid, then that fulfills the requirements for the formation of a contract.

Where the terms are not set out in writing, luweep will have to prove what terms were actually agreed. It is a question of what fee is due, and whether that is less than the amount luweep paid.

If a specific fee was agreed in the contract, that is the agreed fee. If the agency provided the agreed services (it is up to luweep to prove what terms were agreed) then they are entitled to the full fee; if they did not then they are not entitled to the full fee but may be entitled to a partial fee.

If no specific fee was agreed, the agency are entitled to payment on a quantum meruit basis. If they provided the agreed services the court will decide what a fair fee would be, for the work done. If they did not provide the agreed services, or only part of them, they may be entitled to a reduced fee.

If they did not provide the agreed services in full, ultimately the Court would have to try to decide what a reasonable fee would be.