A bit of renting advice, please

Supermom

Thanks embob74 & Kateliana27, as I've said before I really don't have an issue being a guarantor I don't want to go into it, it's complicated.

I have had a google and have found out that it is as mentioned before there are legal implications of holding more than two months rent.

They don't have an issue paying 5 months in advance but is it the norm to always be in effect 5 months in advance as would be the case. 5 months up front first months rent due on moving in in effect always 6 months in advance?

Also what is the norm re referencing, would they still need to pay the £300 fee if they are paying the 6 months in advance or is the agent squeezing every penny?

And if I do go down the guarantor route do they need to pay the referencing fee twice?

Again I am more than happy to do so.

Thanks
Sorry to be a pain with the questions but these people mean the world to me and I want to help.

It_can_get_better

I wouldn't be comfortable with this situation. Of course a landlord is going to be happy for someone to give them £7000. Why does he need this now? A usual holding deposit would be equal to 1 months rent, with the first months rent due when the keys are picked up.

I wouldn't give any money until a contract was in place. Check it very carefully, if the £7000 is classed as a premium to grant the tenancy, it's non refundable.

What is their justification for not using the 7k to pay the rent?

If it were me, i'd find somewhere else. Even people who have been bankrupt can pass a credit check. I was bankrupt just over 5 years ago, and have passed the 2 lettings credit checks i've had since. They can check themselves for a few pound on http://www.eletsure.com/ or http://www.tenantref.co.uk/

KateLiana27

In answer to a couple of your questions - generally the referencing fee is one payment to cover all referencing - employer, guarantor, guarantor's referees etc. £300 is steep (I think I paid about £120 a few years ago) but it should cover everything. (If by chance it doesn't, then that is ridiculous).

Yes, the referencing fee is independent of whatever is paid in advance re: rent and deposits. It's payment for the work of the letting agent taking the references. Therefore, generally, it will not be returned even if the let does not go ahead (if the references are not acceptable, if one party changes their mind, etc).

You sound like a nice and generous person. Good luck with it all.

Supermom

thank you It can get better & KateLiana!

inmypocketnottheirs

Supermom being a guarantor means that you accept total liability should the tenants default, damage the property and refuse to pay or do a runner.

It is essentially the same as having the tenancy in your name.

Please ensure you are fully aware of your liabilities by becoming a guarantor.

Supermom

Thanks but they are not the type of family that would do a runner or trash the house. I have known them my whole life as I said before the bankruptcy is complicated but not through their doing. Financially they can more than afford to pay.


Thanks again

robatwork

Being a guarantor is a good way to lose friends - it's like lending them money. You will end up being the villain if it all goes wrong.....

Do they not have relatives who can act as guarantor?

Please be careful and good luck

Supermom

Thanks again!

sandsni

I thought referencing related to previous LLs etc., and suitability as tenants, as well as credit checks and ability to pay. Therefore, although £300 seems pretty steep, the LL/LA is likely to reference check the couple even if they pay several months up-front and/or have you as a guarantor. Ability to pay isn't the only consideration. I'm sure someone will put me right if I'm mistaken.

Supermom

Thanks sandsni