Jumping thru hoops

diddly74

Hi guys

I am back with yet another question.

As you know, we are looking to rent for the first time after being declared BR in March. We have seen a lovely house, but the landlord is very unsure of us as they have been stung with a horrible tenant before who left a house that was a health hazard when they did a flit.

We have been interviewed by both landlords and now had to go in and see the Lettings Manager at the EA to answer questions about ourselves and out position.

The Lettings Manager has now "suggested" that we pay £1000 on top of the bond of £850 to specifically cover any legal costs the Landlord should have if they have to forceably evict us for non payment of rent, etc and that it would be written into the tenancy that this was specifically what the money is for, and that in a future time i,e. 12 months (once we have built up a relationship with the Landlords etc) this money be refunded to us.

Has anyone else ever been asked for this?

not_loaded

It seems a tad unreasonable as they’ve vetted you already. I suppose it depends how much you want to proceed with them.

Ask them if they lay any claim on your firstborn too!

Sammy85_2

Some LL's request tenants pay 6 months rent up front or a very large deposit if they have a poor credit history. Our old LA wouldn't have even entertained a BR tenant without 6 months rent up front.

I know its inconvenient but surely you understand that he doesnt really know you and can only go on your past, which obviously hasnt been particularly rosy.

Im afraid if you want the house you'll have to come to some kind of compromise and you'll probably find most LA & LL's will have similar feelings about letting their houses to you.

EDIT: Can you offer a guarantor? That might help you.

diddly74

Oh we already have a guarantor, and know we wouldn't have been entertained without that. I have been lurking on the board for a few months now and hadn't heard of anyone having to do this, so that is why I have asked the question.

We are happy to pay the £1000 as long as we know that the situation would be reviewed in 12 months time and we would get the money refunded for "good behaviour". To have an extra £1000 tied up like this as we intend to stay in the property long term is ensuring it is dead money and as such a waste for us.

We are happy to show our prospective LLs that we are trustworthy and willing to work with them, but don't want to be stuck in a position where we are possibly £1000 for years and years (missing out on interest!)

Sammy85_2

I dont know how much your rent is, but how about offering up that £1000 as rent up front instead of a "good behaviour" bond?

I know its not ideal, but that way you wont be paying out the £1000 AND rent.

diddly74

Hi guys

Bit of an update on our situation and I would appreciate your thoughts.

After being "interviewed" by the LLs in our home, and a subsequent interview with the LA's manager, it was intimated that we were in a good position and that a favourable answer from the LLs would be forthcoming on Tuesday (yesterday). It got to 4:45pm and I had not heard from the LA, so when walking the dog I walked past the house that is up for rent, one half of the LLs were there, so I spoke to him.

He said that yes they would be happy to rent to us and that we should be receiving the paperwork from the LA in a couple of days, he even showed us the new door he had just put on the lounge as the old one was a bit scabby and had been swung on by the last tenants children.

When I got home, not 15 mins later, I received a phone call from the LA saying that she had spoken the other half of the LLs and that she had said that they were looking very favourably on us taking the property, but that they wanted to wait a few more days and see what happens - if there is no other interest in the property by Monday then it is ours.

To be honest I feel like telling them to shove it. But............
The house is lovely, it is in a good place for us regarding schools etc.
They have agreed that we can take our pets (for a £20 hike in the rent a month)
It is the right size for us, and is basically brand new inside - with LLs even having put in a new cooker.

They have made us as the title of this thread indicates "jump thru hoops" for this tenancy, asking for extra money etc. Because of what has happened with one guy saying one thing and then getting another story off another I feel used, betrayed and something I can't think of a word for - like just because I am BR that I am a bad person, not to be trusted, scum. Why can't they have just been honest with us, we have been completely honest with them and open, but now I don't feel like giving them the £1000 legal bond the LA suggested as I don't feel that we can 100% trust them.

There are other houses in the area (cheaper too - this is the most expensive 3 bed in our area at the moment), I am going to arrange to see another house, which we have already viewed and liked but its smaller than this one, with the children and see what they have to say.

Just because I am BR doesn't make me scum, we made some bad choices earlier in life which bit us on the bum because of redundancy and this recession. WE AREN'T CRIMINALS and have never been!

clutton_2

i am not quite sure why you are suddenly so angry.... any landlord is able to choose which prospective tenant they accept and which they dont - to be blunt - if i had the choice of a non-bankrupt and a bankrupt i would have to think VERY hard indeed about offering a property to a bankrupt.

Being made bankrupt means you have not been good with money in the past, and an utter stranger (your new LL) is being asked to take you on trust that suddenly you have developed better financial acumen... its a leap of faith for LLs

I recently offered a tenancy to a bankrupt, and he had all sorts of hoops to jump through, but we did not expect £1000 extra in the way of deposit.

Having said all that - it seems over the top to get a guarantor AND a normal deposit AND a £1000 extra - in fact i am not sure that the amount of deposit you are being asked to pay is legal......

i recall something about a deposit of more than 2 months rent has special clauses attached to it...

if you do agree the £1000 then it must go into the Deposit Protection Scheme alongside the "normal" deposit as it represents funds which are returnable to you therefore forms part of the deposit

I agree with the suggestion that you offer more rent in advance ....

but you are a tenant who represents risk to a landlord, and only time and your paying rent consistently will prove that you are not a risk any longer.

Dont cut off your nose to spite your face just because you are angry right now.....

good luck

not_loaded

I sympathise with you on this, but try and see it from their point of view too. They’ve had their fingers burnt along the way.

Only you can decide after all this faffing about whether you want to go ahead. I’d try and look to the future, and better things for you and your family.

I hope it all works out for you!

diddly74

I have calmed down a lot overnight, and yes while I understand that this is a business transaction it has gotten to feeling very personal.

I shall bide my time, view other properties and see what the weekend brings - its not as if we have to get out of our house immediately! If this house isn't for us - then another one will be one day!

Thanks for all your sensitivity and help

G_M

With regards to the amount of the deposit (and I interpret from your post that the £1000 is an additional amount to whatever the deposit is), see Landlordzone here

"The Amount of the Deposit

The amount of the deposit should be a maximum of two months' rent. If the deposit is more than this amount it could in theory count as a premium and may give the tenant an automatic right to assign the lease without the landlord's consent.
This eventuality of assignment should be precluded by the terms of the tenancy agreement anyway, but as a precaution the deposit should be kept below two months' rent.
One month's rent is a common figure, though some landlords avoid this as it could encourage the tenant to substitute the deposit for the last month's rent - 5 or 6 weeks may be acceptable."

So by taking this additional £1K, the LL may inadvertantly be putting himself at greater risk than by not taking it!

diddly74

Hi GM

I don't understand what you are saying in your reply here (forgive me for being a bit thick).

Rent = £670 pm
Deposit requested = £900
Extra Legal Bond = £1000

So essentially you are saying we are giving them £1900 deposit which is almost 3 months rents worth.

What does "automatic right to assign the lease without the landlord's consent" mean?

And We have just heard today that we have got this house! So now we are to fill in the forms and bash out the deal with the LAs!