Can I get Insurance For My 6 month ADVANCE RENT PAYMENT

DVardysShadow

jjlandlord wrote: »

I am following the thread, thank you for your concern.
Hence my reply not to confuse OP re. what protection he could get for his deposit and rent in advance.

I think tbs is equally concerned not to leave OP under the illusion that membership of trade associations is anything more than a very weak indicator of probity.

Anon_John

tbs624 wrote: »

Thanks for your comment but you perhaps need to follow the thread properly.

My post was replying to the OP's suggestion that membership of ARLA et al means that an LA/LL can be trusted. The case I quoted is an example of the fact that this is not always so, unfortunately.

Thanks. I guess I am "OP". Not sure what that stands for. Thanks for getting the thread in context. You are right! i am trying to cover myself in both aspects, ie if I use an agent or if I use a LL direct.

I just quickly read through that article. Not completely clear regarding the £90,000. Was any of the £90,000 paid out to tenants or just to LL's?

Wouldn't the Tenant be more secure if the agent was accredited with ARLA instead? I mean shouldn't ARLA be responsible if anything happened to the LL?

jjlandlord

Anon_John wrote: »

I guess I am "OP". Not sure what that stands for.

Yes you are the Original Poster.

Anon_John wrote: »

I just quickly read through that article. Not completely clear regarding the £90,000. Was any of the £90,000 paid out to tenants or just to LL's?

Here we go... Thanks tbs624

Agents work for landlords, the may hold deposits on behalf of landlords, and they may collect the rent on behalf of landlords.

Ultimately whatever a tenant pays to the agent is deemed paid to the landlord, and the deposit is in any case the responsibility of the landlords. The tenant has only a legal relation with the landlord, not the agent.

So, above even if tenants recovered some money directly from the agent, it was the landlords that were lucky as otherwise they would have had to pay up.

Anon_John

tbs624 wrote: »

Thanks for your comment but you perhaps need to follow the thread properly.

My post was replying to the OP's suggestion that membership of ARLA et al means that an LA/LL can be trusted. The case I quoted is an example of the fact that this is not always so, unfortunately.

Thanks. I really do appreciate your time on this thread and the things you have said. However, I am getting more and more concerned as it seems I can do nothing to protect my money or give me security. If I cannot trust even those on trade associations, what do you advise that I do?

DVardysShadow

Anon_John wrote: »

Thanks. I really do appreciate your time on this thread and the things you have said. However, I am getting more and more concerned as it seems I can do nothing to protect my money or give me security. If I cannot trust even those on trade associations, what do you advise that I do?

http://forums.moneysavingexpert.com/showpost.php?p=45014308&postcount=16 really contains all my thoughts.

Your main security derives from the LL either having BTL permission or owning outright. Be more concerned to prove this than over whether the LL or LA are in their trade associations.

If you go down the road of having a solicitor hold the money, make sure that you have it in writing that they are holding 'as stakeholder' and not 'as agent'

Anon_John

DVardysShadow wrote: »

http://forums.moneysavingexpert.com/showpost.php?p=45014308&postcount=16 really contains all my thoughts.

An alternative approach would be to pay the money to a stakeholder [eg the LL's solicitor] with an agreement to refund you if the property is repo'd.

If you go down the road of having a solicitor hold the money, make sure that you have it in writing that they are holding 'as stakeholder' and not 'as agent'

Thanks again.
Would a LL be willing for us to use his/her solicitor to write up the contract? As it would be costly to do this, they be unwilling to go down that route. If I used my own solicitor the LL would need to agree to it. He may decide he doesn't want me as tenant anymore because too much hassle, wouldn't it?

Anon_John

Thanks again.
Would a LL be willing for us to use his/her solicitor to write up the contract? As it would be costly to do this, they be unwilling to go down that route. If I used my own solicitor the LL would need to agree to it. He may decide he doesn't want me as tenant anymore because too much hassle, wouldn't it?

DVardysShadow

Anon_John wrote: »

Thanks again.
Would a LL be willing for us to use his/her solicitor to write up the contract? As it would be costly to do this, they be unwilling to go down that route. If I used my own solicitor the LL would need to agree to it. He may decide he doesn't want me as tenant anymore because too much hassle, wouldn't it?

Expect to pay something towards his solicitor. But this is a trivial matter. You will have your rental contract, which is the only contract needed. Apart from that, you just need to know who his solicitor is and that they accept the arrangement and pay the money over accompanied by a letter stating that it is paid to the solicitor as stakeholder and is to be released in accordance with the rental contract [which should state monthly payments] while the Landlord is not in default.

Perelandra

I realise this isn't a direct answer to your question, so apologise if this isn't an option for you, however-

You also have the option of using a guarantor (parent, etc) instead of paying 6 months rent up front. If you default on the rent, the LL can go to the guarantor instead.

Anon_John

DVardysShadow wrote: »

Expect to pay something towards his solicitor. But this is a trivial matter. You will have your rental contract, which is the only contract needed. Apart from that, you just need to know who his solicitor is and that they accept the arrangement and pay the money over accompanied by a letter stating that it is paid to the solicitor as stakeholder and is to be released in accordance with the rental contract [which should state monthly payments] while the Landlord is not in default.

Thanks again. If I am to pay 6 months rent in advance to his Solicitor I would like a letter headed signed letter from the Solicitor's Company confirming that the Solicitor does indeed hold the money. What if the Solicitor claims (later) that they no nothing about the deal? I need some proof of where the money is. How can a simple letter from the LL protect me?