Credit Reference Reports

Nearly all Letting Agents will, at some point, have to take out a credit check on a potential tenant.

But what does a credit check say about you? Should you be worried by what it is likely to say? And how do you get hold of a copy?

To help answer these questions, we have teamed up with our good friends at CreditExpert
, who have produced an excellent set of articles to help you understand what your credit report might say about you.

To start the series, the first article looks at the Credit Blacklist Myth:

It has never seemed easier to borrow money, so if you do get turned down, the obvious question is "Why?" swiftly followed by the nasty suspicion, "Maybe I'm on a credit blacklist".

The good news is that you're not. In fact, there's no such thing as a credit blacklist. But there is a host of reasons why you might be rejected.

Your credit report has worried the lender. This unique, personal record of your credit history could show that you already have a number of loans and the lender may be worried that you will not be able to repay another. You will also find advice that will help you to improve your report. Click here for a free copy of your credit report from Experian

You may not fit the lender's profile. For example, a credit card issuer may only give cards to people who already have fewer than three, or a mortgage lender may specialise in first-time buyers.

You are a non-standard credit risk. According to Datamonitor, the independent market analyst, more than one in five adults in the UK are deemed non-standard. They may include the self-employed, others who cannot provide sufficient proof of income and people who have an outstanding county court judgment (CCJ) against them or have had their homes repossessed for non-payment of mortgage.

You move around. Credit companies look for stability - for example, living at the same address for at least three years or having a long-term relationship with the same bank. So, if you move around a lot or switch banks often, this may tell against you.

Your credit score wasn't high enough. Lenders generally base their decisions on a credit score, which they calculate using the information in your credit report and your application. Every lender has a different formula which can even vary from one type of loan to another. To get an idea of how lenders may regard your application you can become a member of CreditExpert and order your National Credit Score for just £4.99. It is based only on the information in your Experian credit report, so it will not be the same as the one generated by a lender, but it will give you a good idea of what they may think. Click here to find out more

Furniture & Furnishings

The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 & 1996) provide that specified items supplied in the course of letting property must meet minimum fire resistant standards.

The regulations apply to all upholstered furniture, and beds, headboards and mattresses, sofa-beds, futons and other convertibles, nursery furniture, garden furniture suitable for use in a dwelling, scatter cushions, pillows, and non-original covers for furniture.

They do not apply to antique furniture or furniture made before 1950, bed clothes including duvets, loose covers for mattresses, pillowcases, curtains, carpets or sleeping bags.

Therefore all relevant items as above must be checked for compliance, and non-compliant items removed from the premises.

In practice, most (but not all) items which comply must have a suitable permanent label attached. Items purchased since 1.3.90 from a reputable supplier are also likely to comply.It is because of these regulations, that the majority of landlords will offer properties as unfurnished. If you come across a property that is furnished, it is in your best interests to check that all furniture complies with the act, and carries a label similar to the examples shown below.

Electrical Appliances & Equipment

There are several regulations relating to electrical installations, equipment and appliance safety, and these affect landlords and their agents in that they are 'supplying in the course of business'.

They include the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets Regulations 1994, the 2005 Building Regulation - 'Part P, and British Standard BS1363 relating to plugs and sockets.

Although with tenanted property there is currently no specific legal requirement for a qualified electrician to carry out an inspection and issue a safety certificate (as exists in the case of gas appliances), it is now widely accepted in the letting industry that the only safe way to ensure safety, and to avoid the risk of being accused of neglecting your 'duty of care', or even of manslaughter is to arrange such an inspection and certificate.

It is in your best interests to ask the Letting Agent or Landlord if such an inspection has been carried out, and to see a copy of the certificate.