Renting Question

Dolphin1

My husband and I are about to relocate to another part of the country for family reasons. We will have the equity from the sale of our house but neither of us have found jobs yet. We are obviously going to have to rent for a while and we are fully expecting to have to pay 6 months rent plus the bond up front.

My question is... will we still have to go through any checks if we are paying 6 months plus the bond up front and if so, what checks? I'm just wondering if we'll be subjected to any additional fees.

Thanks
D1

G_M

Depends on the agent and landlord.

Me? Yes! I would want to check if you have been declared bankrupt for example. Even with 6 months upfront, what happens in month 7? And month 8?

There is also a tendancy for cannabis farmers/prostitutes to pay rent upfront (to avoid landlord contact) so I rarely accept this payment method.

Recently there have also been court cases regarding whether such 'advance payments' actually constitute, legally, a 'deposit' which then by law has to be registered in a deposit scheme...

For all these reasons, as a LL, I would decline 6 months up front and look for a tenant who can be trusted to pay monthly or i would look for a guarantor.

Cheeky_Monkey

As you are relocating to another part of the country for family reasons, is it not possible for you to stay with relatives/friends until you find a property to buy?

Dolphin1

Cheeky_Monkey - Our parents have offered to put us up but it's only going to be practical for a few weeks as they have very small houses. Our siblings all have children so they are unable to put us up. We aren't interested in buying until we have jobs as we will eventually want to live close to work to avoid commuting also there is no chance of getting a mortgage to top up our equity without jobs.

G_M - Getting a guarantor is an option although I suspect that our credit record is better than those in the family that would help. We have always worked, we have always paid our bills and we have plenty of money in the bank. What about if we offered to pay the rent for month 7 onwards two months in advance, i.e. month 7 at the beginning of month 5, month 8 at the beginning of month 6 etc.?

Thanks
D1

G_M

G_M - ....What about if we offered to pay the rent for month 7 onwards two months in advance, i.e. month 7 at the beginning of month 5, month 8 at the beginning of month 6 etc.?

Thanks
D1

How do I know that when we get to month 5 you will pay for month 7?

And that still does not adress my other concerns.

Plus if payment is 2 months in advance, then the rental periods become 2 monthly (although they may already be established as 6 monthly - even worse!). That means when the fixed term expires and the tenancy becomes a Statutory Periodic Tenancy, I as LL have to give the tenant 2 full rental periods notice = over 4 months instead of the normal 2. Not necessarily what I want.

Tenant also has to give 2+ months notice insstead of 1 - not necessarily what HE wants.

So many issues it is just not worth the hassle!

Dolphin1

G_M - I'm not sure that I fully understand you.

Firstly, if you rent to someone who is working then they only have to pay 1 months rent plus the bond upfront so how do you know that when you get to month 2 they will pay for month 2?

Secondly, presumably if I didn't pay for month 7 at the beginning of month 5, I could then be served notice to leave in 2 months time (at the end of month 6) and the landlord wouldn't lose out as I would have paid 6 months up front (or even 7 months if you count the bond)?

BitterAndTwisted

All landlords are different, and G_M is only one of them. I doubt that he's interested in arguing the toss with you about his position but he made it quite clear why he wouldn't be interested in your proposal. He has stated it quite clearly adn the reasons for it but other landlord might be minded to accept your proposal, and some might not.

Whatever happens, you should be fully prepared to be credit-checked and pay the fees for it. They can vary between £75 per person to a couple of hundred depending on what the local market will bear.

I suggest you pay a visit to a number of local agents, explain your situation fully and see what they suggest. Many responsible landlords and agents will want to see your bank-statements to prove that you have the savings which you claim to have.

Dolphin1

B&T - You are right, G_M is entitled to his/her position and who am I to argue with that. Perhaps I would feel the same if I was a landlord. I will either have to find a landlord that will accept several months rent up front or find a guarantor. Thank you for answering my original question though. I was concerned that a LA would force us to do these checks when they aren't necessary just to get money out of us but if it is standard practice (no matter what the circumstances) then that's fine.

G_M

Dolphin1 wrote: »

G_M - I'm not sure that I fully understand you.

Firstly, if you rent to someone who is working then they only have to pay 1 months rent plus the bond upfront so how do you know that when you get to month 2 they will pay for month 2?

Secondly, presumably if I didn't pay for month 7 at the beginning of month 5, I could then be served notice to leave in 2 months time (at the end of month 6) and the landlord wouldn't lose out as I would have paid 6 months up front (or even 7 months if you count the bond)?

1) We are discussing a scenario where a tenant is being evaluated for 'risk'. An unemployed tenant is a much higher risk than an empoyed one (for obvious reasons). Yes, the employed tenant might default in month two, but it is less likely - a risk most LLs accept. That is why they do credit checks, employment references etc.

2) Eviction is not easy, quick, or cheap. So the LL gives 2 months notice. The tenant stays (still paying no rent). The LL applies to court (2? 3? more months? Still no rent). Possession order granted. The tenant stays (still no rent). LL applies for court bailiffs (another month - still no rent).

So LL is now between 5 and 7 months rent out of pocket before he regains possession. (OK, he has the deposit, so say 4-6 months rent). And court fees (can be reclaimed assuming a) he knows where the tenant moves to and b) the unemployed tenant has money to pay...)!

This is a scenario to be avoided at all costs if possible.

So. Back to the decision as to whether to grant the tenancy, and whether to accept upfront rent etc.

And none of this addresses the issues of cannabis; prostitution; (no - I'm not joking!); deposit registration; rental 'periods'; etc.

As I said -

just not worth the hastle

Give me a guarantor any day. Then I know
a) although the tenant may not, the guarantor has funds available and
b) there is someone else to sue who probobly has a permenant address (home-owner, so I can find him!)

tbs624

OP - you could try seeking out LLs who self manage their properties. It is often far easier to deal direct when letting arrangements aren't the usual straightforward ones and LLs tend not to charge the astronomical "admin fees" so beloved of LAs, merely passing on the actual costs of third party referencing ( can vary from approx 20 to 60 quid).

Try the local Council - they may hold a list of private sector accredited LLs, and check out the local and national LL associations who should be able to give some local contacts

BitterAndTwisted wrote:

Many responsible landlords and agents will want to see your bank-statements to prove that you have the savings which you claim to have.

A potential T showing bank statements has very limited value to a LL

If you *are* going to pay rent upfront OP, take as much care to check out the LL as s/he will to check you out. Note that if you go down the guarantor route then the guarantor will usually be subjected to third party referencing too.

Blackpool_Saver

I do not believe that employed tenants are always a better option, benefit income is guaranteed income, people can and often are made redundant these days. A thoroughly vetted benefit claimant with a good credit history is safer than one with poor credit history in a low paying job.