Landlords,What would you do?

fishpond

I have been a landlord for some years now and I suppose this may becoming more common?
What would you do?
What do you think?
One of my flats has gone out to an ea for renting out and a very quick response was forthcoming.
Older guy with a younger partner.
She works part time, he works full time.
They initially asked for a 2 year contract, which I refused.It would be for 6 months and if they checked out with me and I with them, it would then go to a periodic providing their references checked out.
EA had already stated that they have been on the EAs books for seven years and have always paid their rent on time and have been v/good tenants.
Ea has just rung to tell me that he was made bankrupt 7 years ago according to his credit check/refs.
The partner doesn't earn enough in her p/time job to cover the rent, and although he is in f/time employment and can cover the rent, I have little bells ringing in my head asking, why did they want a 2 year contract in the first instance ?
Why wasn't he upfront in telling the EA his financial history.
I have no problem with the bankrupsy as such, but I wonder if there is anything else I do not know which I should.
Also how long before being bankrupt gets written out of your records?
Any thoughts, suggestions or ideas gratefully accepted.
P.S
I really should let EA know tomorrow as I think it would be unfair on everybody concerned to let it drag on too long.

chant1l

to be fair anyone who lasts 7 years in the one place is a bit remarkable. He may honestly just want security of tenure, or he may think he is offering you what you want. Speak to his last landlord and get the full story - probably.
Don't assume the worst, one of my longest staying tenants has only just got a bank account and couldn't give me a reference...

knowdough_2

Like you I have been a Landlord for some years and have never, fortunately, had occasion to retain even one penny of a tenant's deposit or enter into any sort of litigaton.

I use an Agent to find clients, who do all the usual checks, but manage the properties myslf. However, I always insist on meeting potential cliets personally. If I have the slightest doubt about them (just a feeling in my water) I run with my instinct and don't accept them as tenants. The agent can give them the easy let down!

Of course this is the least scientific method possible but is has worked for me. Clearly you are not entirely comfortable with entering into a contract these prospective tenants, otherwise you wouldn't be seeking the opinion of others?

My advice, don't accept them as clients.

chops05

You shouldn't tar every tenant with the same brush! I have been renting for many years as I cannot afford to buy my own house. I can understand why alarm bells are ringing but if he has paid his rent on time in the past then why penalize him for being bankrupt? May be he thought that as it was over 6 years ago it may not have appeared on his credit check and that he did not need to disclose this information?

When I moved in to the house I live in now I was accepted on a 2 year tenancy. This was due to the fact that I was living in a property and the LL decided to sell after 9 months of me living there when it was verbally agreed that I could stay as long as I wanted to live there (i.e the LL wouldn't be "kicking me out"). This happened to me twice so I didn't want it to happen a third time especially now I have a daughter to consider too.

Perhaps meet with the prospective tenant and see how you feel about it then.

lynzpower

bear in mind lots of people go bankrupt for a variety of reasons, many never to repeat again, for example a failed business. A breif nose over DFW shows plenty of people who have had no choice but to become BR, but without being unable to manage paying the rent iyswim.

Personally, as a renter I can see why he wants 2 years, who wants to be moved every 6 months?

Rick62

I think he is being entirely reasonable asking for 2 years, if he is planning on renting long term then of course he doesn't want to potentially move every 6 months.

Bankrupt 7 years ago is not a deal stopper at all, I would discretely (through the EA) find out why, but it could be a failed business or family problems. If his credit has been good since. I used to rent out my house (while working abroad), my tenant went bankrupt but stayed in the house several more years with no problems.

The key is will he be a good tenant, the EA says yes, if you are unsure you could always ask to meet him (on the basis of discussing the 2 years say). He sounds a better prospect than a tenant that just wants a place for a few months until they buy something else.

Emmylou_2

How about you meet him for coffee to see if you think he'd "work" for you as a tenant.

I have really bad credit due to problems in my past but always pay the rent on time - at least then there's a roof over my head when I can't afford to do anything else - maybe he's someone like this.

clutton_2

First question for me would be - why do they need somewhere to live now ?

if he is genuine, i cannot see why he should quibble at an initial 6 months AST - then if all is well, renew, if you want for 12 months. If he has lied to you about bankruptcy, what else may he be telling half truths about ? you could always get a Guarantor ...... if his friends/family trust him enough to pay his rent in difficult times, and will sign to be credit-checked themselves, and will act as guarantor, then i would be tempted to give him a go myself.

i have been a LL for 7 years, and have NEVER given anyone more than 6 months for the first AST.

Guy_Montag

Ummm, whether he's in for 6 months or 2 years if he falls more than 2 months behind on his rent can you not get a section 8 repossession order & kick him out in 2 weeks anyway?

(This is just what I've picked up from these boards)

clutton_2

You can take a tenant to court under a Section for rent arrears, yes, and then a clever tenant will tell the court all about their problems, and promise to start paying again, and they pay you a bit, then stop paying again, and then off to court again, and again.

I tend to do a 6 months AST then let it go onto periodic, unless a particular tenant wants a new AST to show HB or whoever. This way, after 6 months, if they then start mucking about i can go for a Section 21 (i dont have to give a reason) repossession order.

i have never had to take any of my own tenants to court, but have currently issued a Section 21 on one of my managed properties, due to severe damage to the property, and the fact that they have made the house into a serious fire-risk, and will not allow my guys in to repair it.

Cazza

[QUOTE=fishpond
Also how long before being bankrupt gets written out of your records?
[/QUOTE]

Bankruptcy will stay on your credit history for 15 years from the date you are discharged.

If you are particularly concerned, why not ask for 6 monhts rent in advance, then review the situation when you renew the contract?