Should we sign rental agreement when current tenant is still there?

Nenen

We haven't rented privately for many years and would appreciate some advice.

We've recently exchanged contracts on the sale of our house and are completing on 29th March so need to find somewhere to rent in Cambridge (much nearer to work) pretty quickly! Both houses for sale and houses for rent go very quickly in Cambridge as there seems to be a lot of competition among buyers/renters (hence our decision to sell ours and rent for a while in order to be in a strong position to move quickly and be seen as 'desirable buyers' when something we like comes on the market).

We intend to rent for a few months until we can find somewhere to buy again. We were hoping to find somewhere that was already empty but saw a house we really liked with a tenant still in it. It was originally advertised (on Rightmove etc) as available immediately and the LL told us on Saturday when we spoke to her on the phone to arrange a viewing that the tenant was moving out at the end of March but she didn't know the exact date and to speak to the LA. Then the LA told us yesterday that the we could have it from the 4th April. We were tempted enough by the details to go and look and see if we could work something out.... maybe store our furniture and rent a 'holiday home' for a few days.... far from ideal but we really liked this house and it would suit our plans for the next few months. We do have to be settled into somewhere by 10th April at the latest as I am a teacher and need to move during the Easter holidays and our youngest son is coming up to important exams.

We went to see the house tonight and actually met the tenant. She is a very nice lady who told us she is moving out because she is due to exchange on her purchase next week. She also told us she is intending to move out during the first week of April but has paid her rent up to the middle of April 'just in case'. My question is this... if we pay all the fees to LA (over £250) to reserve this property do credit checks etc and then this lady's exchange/purchase fails to take place for any reason and she decides she wants to stay in the rented place where does that leave us? Given our situation, should we just walk away from a potentially lovely place and find something that is already empty?

All advice gratefully received :beer:

franklee

I would tell the LA of your interest straightaway giving them your details and explain the issue of the tenant's exchange date. Ask if they will take a refundable holding deposit from you that shows your commitment but will be refundable if the tenant doesn't exchange by a specified date, it's a bit unusual so they may not do it but those that don't ask don't get. Or do without the holding deposit and ask the LA and/or tenant to call you on exchange and you then rush round to the agent and put your money down. The tenant may co-operate as it'll mean they have to suffer fewer viewings. Basically negotiate but I would not put down a non returnable deposit yet. Next week for the tenant's exchange isn't long away. Stress to the LA that you have exchanged and have firm dates, that will go down well. Get any agreements made and receipts in writing. Good luck!

EDIT ADD: PS If it turns out the tenant can move earlier than the middle of April and you can move in then the tenant should get a refund of the rent already paid for the days between your moving in and the middle of April which is what she's paid her rent up to. Another reason for the tenant and you to work together.

barnaby-bear

Nenen wrote:

We were hoping to find somewhere that was already empty but saw a house we really liked with a tenant still in it.

To be honest, as someone who's spend 10 years in Cambridge private rental, I've only once viewed an empty rental, most decent stuff (i.e. not new build £900 luxury flats - they seem abundant and empty) that's reasonably priced will be let well before the current tenant leaves, often the agencies have you moving the same day and cleaning can be an issue. You can't really afford to be picky and wait for somewhere empty unless willign to pay for stuff hanging around and very overpriced. Buying in Cambridge is even scarier, currently most stuff (other than those 2-bed luxury flats) is going to sealed bids (15-20% over asking) and it's frightening.
As agencies go some are good some worse, I'd avoid St. Andrews like the plague, Redmayne Arnold & Harris are fantastic, Russell okish although incompetant rather than evil.

Ebany

I'd agree with you regarding the agencies, RA&H are my current agencts and they are lovely (I'm the tenant), Tucker Gardner are also good, and St Andrews were just a right old pain in the bum. I've also heard bad things about Ambassador, though I didn't experience it myself.

barnaby-bear

Ebany wrote:

I'd agree with you regarding the agencies, RA&H are my current agencts and they are lovely (I'm the tenant), Tucker Gardner are also good, and St Andrews were just a right old pain in the bum. I've also heard bad things about Ambassador, though I didn't experience it myself.

Yes I was talking from tenant point of view too, ahh Ambassador I forgot - they have about the worst reputation, very high fees for tenant (they charge the tenant £200 for their time to check the inventory) and they don't always 'bother' with gas safety checks or repairs. Hear reasonable on TG too, Haart have heard a few grumbles but nothing horrific.

Nenen

Thank you all so much for your really helpful replies. Isn't the internet an amazing place to 'meet' strangers who turn out to be local? :beer:

Have any of you who have rented in Cambridge ever managed to find rented property without using an agency? We look in Cambridge Evening News everyday (plus property inserts) and keep an eye on a couple of local shops but so far we haven't seen any houses... only a few rooms to let to students.

The house I mentioned in my OP is being let through Ambassador... :eek: now I'm even more worried about whether or not to go for it! Any more thoughts?
Thanks again

Nenen

I've just looked at a couple of Letting Agency websites that publish their draft tenancy agreements. One of them states that the original 'admin fee' plus charges to do credit references are non refundable. I can understand that if I decide to pull out before taking up the tenancy I shouldn't get my money back but one of them states that should the Landlord decide not to let the property after all (prior to tenant moving in)then a proprtion of fees we have paid would still be taken :eek: I can't see how this is fair? Can anyone explain please?

Does anyone know what happens if the current tenant refuses to move out (even though she has given notice) and decides she wants to stay on after our tenancy is supposed to start? Do our fees get refunded?

barnaby-bear

Nenen wrote:

Thank you all so much for your really helpful replies. Isn't the internet an amazing place to 'meet' strangers who turn out to be local? :beer:

Have any of you who have rented in Cambridge ever managed to find rented property without using an agency? We look in Cambridge Evening News everyday (plus property inserts) and keep an eye on a couple of local shops but so far we haven't seen any houses... only a few rooms to let to students.

The house I mentioned in my OP is being let through Ambassador... :eek: now I'm even more worried about whether or not to go for it! Any more thoughts?
Thanks again

Ambassador have bad management reputation (broken appliances not fixed, workmen entering without access, forgetting to do checks according to colleague and ex-tenant) and known to be steepest on fees
http://www.ambassador-properties.co.uk/tenant_fees.html
Check out especially supposed to be steep - the cost for THEM to check their stuff is ok.

Privately the University Centre (Mill Lane) notice board (physical) supposed to be good.

Cambridge evening news https://www.cambridge-news.co.uk classifieds, but you HAVE to do on a publishing day - thursday (hard copy more reliable) as most stuff gone by saturday.

Most rentals are furnished, no smokers, kids or pets and you should arrange to be sole viewer or find out how to apply if multiple viewings at same time (some do first back to office :eek: ), if you like it you can't wait days you really have to take on the spot. 2 months deposit pretty standard unlike other areas I've heard.

BrettWard runs a free online private lettings board (I think company owner (Ward) a local councillor and landlord who hates letting agents - he specialises in letting to professional families and has lots of houses he boasts about)
http://www.brettward.co.uk/canb/

University newsgroup is publically available too
http://www.cam.ac.uk/cgi-bin/wwwnews?grp=ucam.adverts.accommodation

A lot of houses even get sold without being viewed by foreign investor landlords and most rentals are agency. I'd also consider Newmarket or Ely as cheaper less hectic markets with decent fast transport.

Apparently there's a usenet group called cam.misc that might have info.

There's an internal university lettings service classified online board so if you know someone in the uni they can read it for you.

barnaby-bear

Nenen wrote:

I've just looked at a couple of Letting Agency websites that publish their draft tenancy agreements. One of them states that the original 'admin fee' plus charges to do credit references are non refundable. I can understand that if I decide to pull out before taking up the tenancy I shouldn't get my money back but one of them states that should the Landlord decide not to let the property after all (prior to tenant moving in)then a proprtion of fees we have paid would still be taken :eek: I can't see how this is fair? Can anyone explain please?

Does anyone know what happens if the current tenant refuses to move out (even though she has given notice) and decides she wants to stay on after our tenancy is supposed to start? Do our fees get refunded?

They'll probably keep the fees, it's a cartel - they all do it - try and get an agreement not to in writing but unlikely. LAs have licence to print money. :mad:

Nenen

thank you so much Barnaby-bear... that's such a kind and extremely useful helpful set of posts. If I could press your thanks buttons more than once I'd do so! :beer:

clutton_2

"". One of them states that the original 'admin fee' plus charges to do credit references are non refundable.""

This is what i tell all my prospective tenants also (but i only charge £50 per person) - what happens to it - is that i use most of it to pay a professional referencing/credit checking company to verify all the information on the tenancy application form already completed. If that person comes back as an unsuitable tenant - why should i give him the money back ?

I only actually check one prospective tenant at a time, and if i agree a tenancy i have refunded several £50s if i have not actually bought in their credit-check. I work from my home, and so do not have the overheads of larger high-street letting agencies - hence my smaller fees.

"License to print money ?" - ha-ha !!!!

Sure - some months all i do is to pass on rent to a landlord - whilst other months i am on the phone constantly trying to organise repairs; writing letters to tenants/council/housing benefit/insurers/mortgage company/utilities/court/paying invoices/advertising etc etc etc etc

I get both tenants and landlords calling me at all hours of the day and night ..............

~Why do i do it ??????? !!!