Advice needed!!!

pizzarelli7348

Hi everyone,

i need a bit of advice on sticky situation.

My husband and I have a 2 bed flat that is coming up for rent. While I was on holiday last month, a girl put a not through the letter box saying she was interested in the flat (our neighbour spread the voice we were moving out and had intention of renting it).
My husband phoned her up and invited her to have a look. She is 18 with a 3 year old and a boyfriend. They are on benefit. She loved it and said she could pay £525 for it.
My husband said yes in principle as she said she did not mind if the carpet was not done ( the carpet would need to be redone in the living room and in the hall, otherwise it is ok) also the bath is broken and rusty and she said it was ok like that.

Anyway we invited a letting agent last week and they said the bath needs doing as it is unsafe. The quote is £ 335 so now we need to get that done.
Also the letting agent said he could market the flat for £599 with the intention of reaching £575.
Now our dilemma is
do we go with these people on benefit at £525 or do we let them down and go for more?
The people have already paid the agent £50 for the reference check. We have not signed any contract with these people yet nor with the agent, is it to late to pull out?

robpw2

ok letting agent will charge you fees , will charge your tennant fees you probably won't see £575 pound ... whereas you have a tenant who needs a house is willing to pay £525 a month , without the need for a letting agent and you have already said yes
even if letting agent only charged 10% off monthly rent (many will be higher) you would be getting only £517

pizzarelli7348

we would still use the letting agent in both cases

david29dpo

I don't understand.
What "people have paid £50"? and why? Have you instructed the agent?
The agent will know next to nothing about "safety". Is it safe in your option? Would you be happy to use it?

EmmaHerts

pizzarelli7348 wrote: »

we would still use the letting agent in both cases

Why? You have a tenant, you can get legal documents from WH Smith's.

Why spend money you don't have to ?

caringa

Not too sure who has paid the agent £50? Also, as a landlord who has and still does let to tenants on benefits, be very aware that some of them will say they can pay a certain amount but you wont get that from the council or them until they have moved in (unless they have savings and pay you first) You need to check with the local authority that they indeed will be getting housing benefit and how much, but will need their authority to ask for this. You should also try to get references and a guarantor for these people incase the local authority decide to stop their payments. They will not tell you why they are stopping them. Sorry to disillusion you but your really have to take what prospective tenants say with a pinch of salt. We have had horrendous experiences in the past by purely taking their word!

I speak from present experience so I am still learning the hard way! Best of luck!!

Werdnal

pizzarelli7348 wrote: »

Hi everyone,

My husband phoned her up and invited her to have a look. She is 18 with a 3 year old and a boyfriend. They are on benefit. She loved it and said she could pay £525 for it.

Have you checked references for these people? Are they going to pay you a deposit - benefit tenants rarely have enough capital to pay a deposit at the start? Have you taken up references for them?

Whilst I am not against benefit tenants as a whole (my current tenant is on LHA), you should never take any prospective tenant's word for these things without checking first. Are you planning to ask them for a guarantor?

debsue

Letting agents often say "I can get you this much" to get your business, then pull a fast one when the tenants are interested. All they want is their cut. 10% for collecting rent.

sailerboy

As others have said:
* can this tenant pay you the 1st months rent up front? (Benefits are paid in arrears)
* can they pay the deposit?
* have you confirmed how much HB they will receive. If less than £525, how will they make up the difference? (remember HB is paid weekly so they'll need £131 pw)
* have they a guarantor?
* is the bath dangerous? You are the landlord - it is your risk/decision not the agent's!

I assume the £50 was paid by them to your agent for credit references? For BOTH of them? (unusually cheap!). They BOTH need vetting.
If you decide against them, you'll need to re-imburse this to them, but the agent will expect you to pay, not them!

If all the above is good, then you have to weigh up the possibility of a slightly higer rent (though don't necessarily believe the agent will actually achieve what they claim - do your own local research) and the advantage of perhaps finding a working couple with guaranteed income against the reduced 'void' time by getting this couple in fast, the feel-good factor of helping someone on benefits, and your instinctive 'like' of this couple.

Even if you use/pay the agent for management, I assume if you go with this couple you will not need to pay their 'tenant-find' fee since the agent did not find the tenants? Have you confirmed this with the agent?

jamie11

Realxa wrote: »

You should go with letting agents... or WH Smith's....

Thanks

That's what I call a really useless post. If you have nothing sensible to say go to DT.

Werdnal

Realxa wrote: »

You should go with letting agents... or WH Smith's....

Thanks

Ahh but poster has an alterior motive if you check out their profile and go to their homepage.

Realxa, I doubt you will be here long once mods discover your covert and forum-illegal advertising!

The other reply you posted in another thread was also misleading and no help to the OP, so you are obviously only posting to spam advertise your own services - tut-tut!!!!