Should I proceed with offering a tenancy agreement?

If the reference company says no then I would tend to say no too, or what's the point in using the system in the first place

If they don't pay their rent Section 8 is the path to follow. Section 21 is for 'no fault' ie if the landlord wants the property back for some reason. However, this is a long and expensive process and not worth the risk. Attempts to get lost rent back from tenants is never worth the legal costs. I had to take a chef to court to evict him after non payment of rent but they can get cash jobs so even if you can find them after they've left, getting an attachment to earnings order is very hard.

Reply to the comment left by Smartermind at 23/07/2021 - 12:26
Why take the risk?

A tenant who pays 6 months or 12 months in advance doesn’t really mean nothing in my opinion as you are just prolonging a problem for in 6 to 12 months time.

I have taken tenants on it the past who have paid 12 months upfront then they stopped paying after the 12 months and I had to evict them.

I am mindful of the company who did a pitch to the Manchester Landlords conference a couple of years ago, offering tenancy checks using an algorithmic analysis of a potential tenant's neuroticism - based on their Facebook postings! Something tells me that gut instinct would be as good an indicator as some dubious techie programming behind a software credit reference. I too go on gut instinct sometimes. But I hear what others have posted - that if you don't have to take the risk, then maybe it is better not to - given the law on evictions these days. The advice to try another reference agency seems like a fair option to me.

Reply to the comment left by at 23/07/2021 - 12:21
Agree with Ashleigh. Having good references is not bomb proof. I took on a couple of tenants who passed all the tests and when their relationship broke down, I was the ultimate loser to the tune of approx. £10,000 so absolutely agree good references are not bomb proof so use a bit of gut feel and common sense. Good luck!

We rented our property to a couple who failed the referencing check, but offered a year's rent in advance. We used our 'gut' instinct and signed them up for 12 months. The following year, they paid another 12 months in advance. They then left as they purchased a property just round the corner from our property (due to coming into inheritance). The house was immaculate when they checked out. We were very lucky!

I wonder could you ask them to give you written notice to quit today for the end date of the tenancy in a year's time so that they have obliged themselves to leave after the year. You can always renew the tenancy if there have been no red flags over the year but if there are problems you're on stronger ground if they decide not to leave.

As they will have paid the rent upfront, no point paying out on the insurance; they will be liable for double rent for every day they didn't leave after they said they would.

Reply to the comment left by Shirley Harvey at 23/07/2021 - 13:15
It is such a shame when landlords consider ourselves 'lucky' when tenants do what they are supposed to do, in other words, pay their rent and leave the property in good order when they leave.

I cannot believe that about 90% of landlords on this forum are hesitant. I would say if any of you get such tenants willing to pay one year's rent in advance and don't want them please refer them to me.

I would gladly accept them with very few questions asked. As long as they meet the right to rent criteria they would be fine for me.

I think ultimately, it depends on your business strategy and gut feeling. I feel almost certain from the description you have provided, that they will be most suitable tenants especially since they do not have CCJs, no debts, appear to be lovely people, good reports and landlord references, medium risk not high risk.