with regards to another question...?

Question

A member of this site asked if it was possible she could be refused tenancy of a flat if she is a bankrupt. I personally dont think the answers given were very constructive so im bringing it up again.

If a tenant provides a private estate agent with all the required information Eg. employee references, character references, a guarantor and six month up front rent, surely a landlord can not refuse? Or is he well within his rights to refuse a bankrupt?

I understand that the member has not disclosed this information to the agent but they will be completing a credit check on her and her guarantor. Surely, if the guarantor has a clean credit history then the landlord would be creating cause for complaint if he refused to let out the accomodation due to a tenant being bankrupt? This has kind of got my back up a little. How the hell to folk survive if they are going to be refused rental of a home, after bankruptcy!!!!

Piet,

I understand your side completley and sympathise with you. But, surely even you wouldnt knock back a bankrupt if he/she was offering you a full year's rent? An inspection of the flat throughout the year and opinions from surrounding tenants would help with your decision as to whether you rent the accomodation out to the same tenant? I think some tenants are deprived of being given the chance, especially when 'honest' ones are the tenants that would probably give you the most grief.

Answer 1

In the UK landlords are a law unto themselves and can refuse anyone, as US law is based on ours I'm sure it's pretty much the same. In their shoes would you want to be told who you have to house?

Answer 2

It's a business transaction, and to the best of my knowledge, there's no law anywhere that one can't be discriminated against due to their credit. The lender, or in this case landlord, still needs to be cautious, even with a "guarantor".

Problem is, even when someone co-signs, it's still damn hard to collect if the deal goes bad. Just because the co-signor has clean credit, does NOT necessarily mean they have enough spare income or savings to make the payments if the tenant doesn't pay. Eviction is hard and expensive, as is finding new tenants and cleaning up the place after eviction (since they're usually not cleaned up with a disgruntled/evicted tenant).

But I do agree, just because someone files bankruptcy, doesn't mean they can't be a reasonable risk, especially with a guarantor. But every situation is unique, and it's impossible to make a generalized statement.

Answer 3

Unfortunately, landlords have complete control over who they rent to as long as it does not interfere with discrimination. Even though your financial status could be included in that, they still have to ensure that you can pay. I f someone has filed bankrupt, then that is a red flag that they do not have the cash flow to pay a monthly fee. Having a guarantor or co-signer is the best way to get around it. This is the same as financing a car with low credit, always get a good co-signer and there would be no problem at all!!!

Answer 4

I am glad it only got your back up a little. I am on the other side of the fence, a "landlord", what ever that means. And you will not believe the trouble I have had with tenants.

And I have not fallen with my **** and inherited rich, I have been living in a smaller place, and saving to buy a mortgaged rental house. Helping myself by helping other people. But many people just couldn't be bothered with honesty and integrity, and will try and take you for a ride as long as possible.

It also gets my back up a little, that just because you have managed to get yourself ahead a little bit, people think that you owe others, and are "a law unto yourself".

Having said that, I know there are loads of heartless landlords around as well.

There, now I feel better.