Tenant who has been bankrupt - should I consider it?

G_M

malcolmffc wrote: »

How about giving them a probationary 6 month fixed term initial tenancy to begin with and issuing a S21 at the very start if the tenancy to protect yourself. You can always withdraw the S21 and give them a longer contract if everything works out.

Lots of good ideas in this thread - with one exception!

Most LLs offer initial 6 month tenancies anyway, (and some issue a S21 early on as a matter of course) so this idea is meaningless.

If the tenant does turn out to be a badun, a lot of debt and/or damage can be run up in 6 months, and eviction is a pain whatever precautionary steps you take (like an early S21).

sgun

Definitely speak to employer HR dept, check if they have a permanent contract as well as checking that they actually work there. We have found most HR and employers to be happy to advise.

twink1108

Thanks for all of your advice

twink1108

What exactly is a section 21 in laymans terms please?

jjlandlord

twink1108 wrote: »

What exactly is a section 21 in laymans terms please?

Useful link: http://lmgtfy.com/?q=What+is+a+section+21+notice

wannabe_credit_free

Its a gamble more or less. When you get good tenants its great, when you get bad tenants, its a costly nightmare. Me and DH have had both, but more good than bad. 18 mths ago, we had a tenant that did a moonlit flit, taking all the furnishings, white goods and owing 3 mths rent £1800. We then decided to use a letting agents, thinking it would be less hassle and it was for the first year.

Current situation is, 1 flat has been empty since xmas and the other flats tenant is 3 mths in rent arrears. Her lease is up next week and won't be renewed. In the meantime we are having to pay all the expenses incurred and no rental income coming in. :mad:

As I said, when its good, its great, when its bad, its a nightmare. Good luck with it..

chanz4

Letting agent have less power than the milkman, they are then for your money

da_rule

What exactly is it you are worried about? Them not paying rent (plenty of tenants who have never been bankrupt don't pay rent that's the risk LL's take) or them going bankrupt whilst in your property?

I understand that they don't have references but they have been honest about their situation. Is it any more of a risk than giving a tenancy to a young couple who have both just moved out of their parents house?

nonnatus

I would say that the Bankrupt was a great choice! I was in the position your Prospective Tennant is in many moons ago.
Having already messed up my Financial life, I vowed NEVER EVER to do it again and, like most Bankrupts, had a firm grip on every single penny I owned.
I never missed any bills or rent payments, because I'd already seen the consequences first time around. If you helped this guy get his life back on track I would be 99% sure he would pay your rent on time, without hassle, every month he lives there...


Good for you, by the way. If you DO help him out, expect Karma to repay your kindness in years to come.

tangojulie

Go with your instincts but protect yourself by getting a guarantor.