Landlords do you have any experience of US tax forms?

ognum

My letting agents found some new tenants about a month ago to rent one of my properties. They went through referencing and credit checks and agreed the rental to start in about two weeks. (Property was occupied but tenants moving to their own bought home) They are a family of four relocating to the UK from America for work and have enrolled their kids into the village school etc.

I am out of the country on holiday and my agents have sent me via email a six page US tax form and other forms because the renters are now saying there US company is paying the rent even though this was not mentioned and they have paid for personal referencing etc.

The letting agents say they have run these forms through their solicitors and they say it's up to me if I complete them. I emailed back various questions like what is the name of the company that will pay the rent, who would hold the tenancy, where would I stand if the tenant lost his job etc.

The letting agents response is we don't know you need advice from a solicitor!!!! I am away, can't complet the forms for two weeks or speak with a solicitor. The letting agents then said, we will advertise the property again and tell the tenants if they want it they will have to get the payments made to them and then pay as normal.

I do not want to appear difficult, I have rented a flat in the US while living in there that was paid for by a company but that company has a US office that made the payments.

So, any suggestions to resolve this other than just relet?

tim123456789

I'd say you're on a hiding to nothing with this deal

The tenants could easily skip back home again and you'd be left with no-one to sue.

If I were the LL I wouldn't touch this unless T stumps up 6 months advanced rent

theartfullodger

Letting agent is a clown: Either 6 months rent up-front or a UK based guarantor who passes the usual checks.. In your shoes I'd fire the agent & find one who has 1/2 a brain...

Yes, I do have experience of US tax forms (as it happens for USofA share dividends..) since you ask.... They are about as clear as Dave Cameron's economic policy...

Cheers!!

ognum

theartfullodger wrote: »

Letting agent is a clown: Either 6 months rent up-front or a UK based guarantor who passes the usual checks.. In your shoes I'd fire the agent & find one who has 1/2 a brain...

Yes, I do have experience of US tax forms (as it happens for USofA share dividends..) since you ask.... They are about as clear as Dave Cameron's economic policy...

Cheers!!

Exactly AL we had to hire a US accountant when we lived there because it was all too complicated.

ValHaller

I would not be completing US tax forms, although I might endorse any application to US tax authorities made by your proposed tenants.

As the proposed tenants are stating that rent will be paid by their employer, I would suggest that the contract is redrawn with the employer and money paid up front for the term unless the employer has a sueable UK presence..

May be difficult to knock beck these tenants as their referencing fees would be returnable in full, although I think your agent should bear the loss.

ognum

ValHaller wrote: »

I would not be completing US tax forms, although I might endorse any application to US tax authorities made by your proposed tenants.

As the proposed tenants are stating that rent will be paid by their employer, I would suggest that the contract is redrawn with the employer and money paid up front for the term unless the employer has a sueable UK presence..

May be difficult to knock beck these tenants as their referencing fees would be returnable in full, although I think your agent should bear the loss.

I think it's debatable whether their referencing fees are refundable as at no time did they state their rent was coming from another party they went through standard referencing etc. If it is refunded that's down to the agent anyway!

uk_american

If helpful, this is the US government site for tax forms/info: http://www.irs.gov/ so if you enter the form ID, you can get some more background on it.

That being said--as a US person, I've always used an accountant to do my US taxes.

USAgirl

I live in the us and agree on the complexity of their tax forms. More importantly I don't understand why you have to complete a us tax form as you have no us income and I can't think of any other reason why you would need to. I'd be telling them you want rent upfront paid by them or the company but would not be signing any us tax forms.

ognum

Thanks for all the replies

The agents have told the prespective tenants that they can use the normal payment route or no rental, no reply to that yet.

I have also placed the property back on the market if they want to proceed as originally agreed then it can come off again.

I think this was a completely new situation for the agents who are an independent firm who have been in the buisness 35 years and have up till now been excellent. They are very embarrassed I think because the tenants didn't mention any of this at viewing, application or referencing.

Live and learn.

SnooksNJ

ognum wrote: »

My letting agents found some new tenants about a month ago to rent one of my properties. They went through referencing and credit checks and agreed the rental to start in about two weeks. (Property was occupied but tenants moving to their own bought home) They are a family of four relocating to the UK from America for work and have enrolled their kids into the village school etc.

I am out of the country on holiday and my agents have sent me via email a six page US tax form and other forms because the renters are now saying there US company is paying the rent even though this was not mentioned and they have paid for personal referencing etc.

The letting agents say they have run these forms through their solicitors and they say it's up to me if I complete them. I emailed back various questions like what is the name of the company that will pay the rent, who would hold the tenancy, where would I stand if the tenant lost his job etc.

The letting agents response is we don't know you need advice from a solicitor!!!! I am away, can't complet the forms for two weeks or speak with a solicitor. The letting agents then said, we will advertise the property again and tell the tenants if they want it they will have to get the payments made to them and then pay as normal.

I do not want to appear difficult, I have rented a flat in the US while living in there that was paid for by a company but that company has a US office that made the payments.

So, any suggestions to resolve this other than just relet?

Without knowing what the form number is my guess is they are planning to take the rental off their US taxes as a business expense.

SnooksNJ

tim123456789 wrote: »

I'd say you're on a hiding to nothing with this deal

The tenants could easily skip back home again and you'd be left with no-one to sue.

If I were the LL I wouldn't touch this unless T stumps up 6 months advanced rent

Yes, the US does have it's share of deadbeats. But it's not like American's are living in the US where you have a right to live in the US. You have visa's involved here and since the US is one of the countries that has been taking a hit with the visa reform I would think it would be unwise to mess around with not paying bills.