Prospective tennant?

freddie2

We are about to let out a house (first time landlords!). The first person who came to view it has offered the asking price. Just wanted views on their situation and whether people with more experience could give their views.
She is coming out of a divorce and the former marital home is being sold.
One child (5yr old girl)
A dog ( we have said a 2 mth deposit and full professional clean of carpets on leaving)
She wants to pay 6mths rent in advance and after 6mths pay another 6mths in advance.
Her income is fairly low (part time work at a nursing home), but income boosted by maintainance from ex partner.
The property is a two bed, two bathroom house with a garden.
The idea of 6mts rent in advance appeals but are there any pit falls re this?

I_have_spoken

Yes, you need to be clear that this is pre-paid rent and not a deposit which would have to go into a protected deposit scheme.

You also need to be asking why she's willing to pay 6 months up front, does she not want to give you any reason to visit the property - maybe setting up with new partner and planning to claim benefits?

Errata

but income boosted by maintainance from ex partner.

That can stop at any time. It is very often an extremely unreliable source of income.

G_M

As first time landlords you should learn to spell 'tenant'!

Read:
New Landlords (information for new or prospective landlords)

Have you checked references? Salaries? credit records?

Beware high deposit - At 2 months rent it becomes a 'premium' and gives the tenant extra rights.

"full professional clean"? Needs to include de-flea.

6 months in advance? What happens after 6 months when they stay but can't afford the rent?

freddie2

Thanks.
Have read that guide, very useful. We are using a managing agent so all checks will be carried out.
Will take comments on board.

G_M

freddie2 wrote: »

..... We are using a managing agent so all checks will be carried out.
....

The one statement does not guarantee the other.

Ultimately you are responsible not the agent, so you have to check the agent is doing as you have instructed, and that you have instructed them to do what you want/expect.

Anyone (including you!) can set up a letting agency.....

Errata

She wants to pay 6mths rent in advance and after 6mths pay another 6mths in advance.

Why would she want to do this when she doesn't have to?

jimjames

freddie2 wrote: »

Thanks.
Have read that guide, very useful. We are using a managing agent so all checks will be carried out.
Will take comments on board.

Some letting agents will do as little as they need to get your fee. It is your house so it matters more to you who you let to than it does to them.

If they get a tenant in then they get their fee. If the tenant refuses to pay later on it makes no difference to the LA fee but it could cost you a lot.

Far better to make sure you have reliable tenants than someone who will stop paying rent after 6 months. If it is a popular property I would choose the person who has best references and most likely to be able to pay independently rather than relying on other sources of income.

aggypanthus

Dogs are a BIG mistake, our flat still smelled so bad of dog, even after replacing the carpet and full clean, also the walls were dirty and scratched, and required painting.

sandsni

Unfortunately letting houses can make you a tad cynical (some would say realistic). Don't let yourself be taken in by a sob story or made to feel responsible for "helping" the prospective tenant through a rough patch.
And don't rely on the LA to follow up on the references. Do your own homework and make sure the references tally with the story you're getting.

tbs624

G_M wrote: »

Have you checked references? Salaries? credit records?

LLs/LAs cannot access a potential T's "credit records" but should of course undertake appropriate third party referencing of both potential T and any guarantor,which would reveal any unsettled CCJs etc

G_M wrote: »

Beware high deposit - At 2 months rent it becomes a 'premium' and gives the tenant extra rights.

My bolding. For clarification, its a deposit of more than two months rent equivalent which may be viewed as a premium - HA1988, s15(4) refers to "premiums" as "any sum paid by way of deposit, other than one which does not exceed one-sixth of the annual rent payable"

G_M wrote: »

"full professional clean"? Needs to include de-flea.

Agree about the flea treatment but LL would of course have to be able to show that carpets had been "professionally cleaned" by the LL prior to the start of the tenancy if requesting that the T met that standard on tenancy exit.

G_M wrote: »

6 months in advance? What happens after 6 months when they stay but can't afford the rent?

The OP should have a guarantor in place, with the agreement executed as a deed.

OP, as other posters have said, do not simpy rely on an LA to do what is necessary: ultimately the buck rests with you as the LL. Don't ever let an LA dictate to you how your rental property should operate.

No training, qualifications, registration /regulation required for anyone to be able set themselves up in business as an LA handling thouands of £££'s worth of other people's money and property.

Pay particular attention to their fees structure, both for you and for any potential T ( especially around renewals time) and check that they deal properly with the T's deposit or it could cost you dearly.