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Renting to a tenant with an IVA


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  • 4 weeks later...

Yes, effectively in the past one of them has had poor financial management skills and has had to enter into an agreement to get the debts wiped/put into 1 tiny payment 

It doesn't mean they won't prioritise the rent / not pay - as there could have been a genuine reason for it but I would do rigorous employment, affordability checks and credit checks to ensure they can definitely afford the rent even if one of them is not working 

If you have other tenant options, I'd try them instead first

 

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Hi Jonathan

I used to work for an insolvency practice so can probably add two cents here from another perspective. 

Stuart is correct in that, by them being in an IVA, they've historically showed they've had trouble managing their finances previously. However, terms of an IVA are pretty strict and can actually demonstrate they've turned a corner as payments do have to be regular.

If in doubt, you can always request a copy of regular payment schedules from their insolvency practitioner to put your mind at ease that they 1) can afford their rental contributions and 2) they've got a track record for making all their payments on time. 

Also, as Stuart has said, that their financial difficulty might not be due to them being frivolous - we had some cases where life had just been really unkind and their circumstances were far beyond their control. I like to think everyone's entitled to a second chance. 

Of course if you're under any doubt though, you might want to consider another application. 

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