selling and renting - q's and any advice for newbie to renting

aliby21

I am in the process of selling my house, everything proceeding well. However I haven’t found anywhere to buy (very little coming on the market where i am plus I am very fussy!) so my current plan is to move into rented accommodation for a while. It is a loooong time (25/30 years) since I was renting and then it was mostly room in a shared house scenario, so I am a bit out of touch with how things work. I’ve been looking at rentals on rightmove this morning and have a number of questions, if any of you nice people could advise:

Many of the ads say ‘long term let’. I’ve read up on ASTs, but is there another ‘long term’ tenancy agreement type? Or does this mean a long fixed term period (longer than 6 or 12 months?) with an AST? Or does it just mean the landlord is unlikely to accept a tenant who is going to want to move out after a relatively short time? My plan is to keep looking for somewhere to buy, so I’d really want a 6 month fixed term then periodic tenancy so I’ve got flexibility to move.

I’m obviously not going to have a reference from current landlord, and I am (early) retired so don’t have an employer reference. Am I going to be stuck at the application stage? I can pay rent (e.g. six months) up front, would this obviate the need for employer reference? Is there anything I can be doing to get ready to apply?

Has anyone on here done the selling and renting thing, and did it work for you? What things did you consider? In particular, I’m trying to work out whether it is going to be better to rent somewhere big enough to move all my stuff into, or to rent a smaller, cheaper place and put some stuff into storage – I’ll get quotes from removers (I don’t want to go down the man with van /self store route as I don’t have the muscles) but any personal experience would be useful.

Lastly does anyone have any top tips for a newbie to renting, things I should look out for when talking to agents/LLs or viewing? And any tips for a newbie tenant, of things to do / not do?

Sorry for lots of questions, I’m finding this all a bit nerve wracking!

HappyMJ

You do not have to inform a landlord you only wish to stay for 6 months or 12 months.

It's more of an assurance that you will not be asked to leave in 6 or 12 months. It's not a guarantee as anything could change but it's an indication the landlord is in it for the long term and you should be able to stay for several years.

You will always be given a term of a minimum of 6 months under an AST. It can start as a periodic tenancy but the landlord can not give you any notice until 6 months have passed. To prevent you from giving notice during the fixed term the term is usually set as 6 months.

I have let my house out to rent something much smaller and more affordable.

If you don't have an annual income which is 30 times the monthly rent then you'll need savings equal to 30 times the monthly rent and you might need to pay 6 months rent up front (don't offer though wait until they suggest it). Even then some landlords do not want tenants that do not work even if you have too much cash to claim benefits and require all tenants to be in full time employment. Around a quarter of the landlords I came across would not accept me and my partner even though I could clearly afford the rent without the need to work or claim benefits.

If you don't work you aren't going to be able to supply an employer reference but that's not essential if you've got the cash. If you can supply 6 months bank statements that should go some way to prove you have the money to pay the rent without needing to work. Pension income can be used as income, it doesn't always need to be income from employment.

I would look at quotes for storage or getting a property with an extra bedroom to store your stuff and compare. Sometimes it's cheaper to get an extra bedroom and fill it with your stuff than move it to a storage unit. Also look at getting rid of your stuff. Do you really need so much stuff?

aliby21

Happy MJ, thank you so much, that is massively helpful!

I will remember not always to offer information, and wait until asked!

HappyMJ wrote: »

Around a quarter of the landlords I came across would not accept me and my partner even though I could clearly afford the rent without the need to work or claim benefits.

eeeek! I will have to meet this when I come to it, but useful to be forewarned that I may not be acceptable to a good proportion of LLs.

and yes, point taken on the amount of 'stuff' - I am ruthlessly decluttering and finding it very cathartic!

G_M

aliby21 wrote: »

Many of the ads say ‘long term let’. I’ve read up on ASTs, but is there another ‘long term’ tenancy agreement type?
Yes there are other tenancy types (eg here) but in nealy all cases this will be an AST
Or does this mean a long fixed term period (longer than 6 or 12 months?) with an AST?
Probobly means the landlord intends to let the property longterm and wants a long term tenant. But many LL would still initially offer a 6 month fixed term AST, and then renew (or go periodic) for an indefinate period)
Or does it just mean the landlord is unlikely to accept a tenant who is going to want to move out after a relatively short time?
Yes (assuming the tenant tells him. Though being dishonest about your intentions is not the est way to start a relationship).
My plan is to keep looking for somewhere to buy, so I’d really want a 6 month fixed term then periodic tenancy so I’ve got flexibility to move.
or, indeed, a periodic tenany, though few LLs offer these from the start

I’m obviously not going to have a reference from current landlord, and I am (early) retired so don’t have an employer reference. Am I going to be stuck at the application stage? I can pay rent (e.g. six months) up front, would this obviate the need for employer reference? Is there anything I can be doing to get ready to apply?
credit record OK?
Pension income?

......(I don’t want to go down the man with van /self store route as I don’t have the muscles) but any personal experience would be useful.
2 men with vans? Get quotes from www.anyvan.com

Tenancies in Eng/Wales: Guides for landlords and tenants

Smodlet

Just one little thing, beware of letting agent's fees, they can be astronomical considering how little they do to earn them (so not biased) Other than that, G_M is the bees knees on this subject; not saying others aren't, just saying what I know.

aliby21

Thank you G_M, that is all extremely helpful

or, indeed, a periodic tenany, though few LLs offer these from the start

I hadn't realised this was possible, even if unlikely, useful to know.

Though being dishonest about your intentions is not the est way to start a relationship

agreed. no intention of lying about my circumstances.

credit record OK?
Pension income?

credit record is fine, income from investments rather than a pension but is a regular amount going into my bank account. I will also have the money from the sale of my house when that has gone through.

HappyMJ

aliby21 wrote: »

Thank you G_M, that is all extremely helpful


I hadn't realised this was possible, even if unlikely, useful to know.


agreed. no intention of lying about my circumstances.


credit record is fine, income from investments rather than a pension but is a regular amount going into my bank account. I will also have the money from the sale of my house when that has gone through.

My experience with investment income is that it must be able to be demonstrated on tax returns. The last self assessment that has been done is 2014/15 as 2015/16 isn't due until the end of Jan 2017. So the question you need to ask yourself is do you show enough income on your 2014/15 SA excluding any income you no longer get such as that from employment?

I have thousands of pounds cycling around my bank accounts each month to meet the deposit requirements for bank accounts. None of that is income...it's just capital movements.

The letting agents referencing company required the money to be sitting in an account untouched for 6 months for the money to count as capital.

bouicca21

When my marriage broke up and I had to move into rented, I ended up with a dodgy landlord who didn't pay the mortgage (or debts) and as a result found myself dealing with bailiffs for the first time in my life and faced eviction when the mortgage company sought repossession. He said the tenancy would be managed by the letting agent but then 'managed' it himself. Fortunately someone told me about the rules on deposits, so I was able to force the LL to put my deposit in a protection scheme, otherwise I would not have got it back. I could have done with knowing the rules on getting repairs done as well.

The second place was better run by an agent - but I had to go through all the vetting procedures again which was of course costly. First time round I did not need a reference. I should have realised it was all a bit dodgy when the agent was clearly surprised that I had a decent credit rating. Second time there was a requirement for a landlord reference but this was waived when I explained the situation. Both times admin fee and credit check fee.

I'm not sure how you ensure that you are getting a decent landlord. Maybe you just have to be more streetwise than I am, but 30 odd years of being an owner occupier does not prepare you for the lottery of renting.

I thought I was only going to be renting for a few months, so I looked for a one year tenancy with a break clause at 6 months.

aliby21

Thanks everyone. Happy MJ, that is such useful information about what counts as income. It means I can get things in order before I get to the stage of referencing checks, so I should hopefully be ok

bouicca21 wrote: »

I'm not sure how you ensure that you are getting a decent landlord. Maybe you just have to be more streetwise than I am, but 30 odd years of being an owner occupier does not prepare you for the lottery of renting.

This is exactly what worries me Bouicca, renting is a whole different ball game! Sorry you had bad experiences, and hope you are better settled now.

walwyn1978

Loads of useful advice above. On the storage of your things issue, we had similar and looked for rental accommodation that had a spare room or a garage with the intention of putting the stuff in there. There was obviously a slight rent increase on the standard two bed properties we were therefore considering but it was less than storage company fees. We eventually found one with a garage, stuck all our extra stuff in there and although it was more expensive than a similar sized rental in the same area, it was still over £80 cheaper a month than a storage unit would have cost on top of the rental.

franklee

We sold and rented. Beware you may end up in rented longer than intended. Upside was a break from responsibility and DIY, downside dealing with letting agents and being asked to move when a landlord wished to sell. It was useful to checkout new areas. It put us in a strong position when we purchased again as we stepped in when our vendor's initial buyer pulled out. Our vendor didn't want to lose their purchase so were in a hurry and we were chain free on a periodic tenancy so we got a good deal and they got the house they wanted to buy.

We purchased proper removal boxes and packed ourselves, numbered each box and then typed up a quick inventory of what each contained. We piled them all in the spare bedroom rahter than put them in separate storage. We make a note of how the boxes were piled so if we wanted to get to a box we knew where it was. Need double walled boxes so they don't collapse under the weight of boxes above. Books should be in smaller boxes to they are not too heavy.

If the letting agent promises you anything, e.g. furniture will be removed, the property decorated cleaned between tenancies, or anything then ask for confirmation in writing. We found email convenient. Otherwise they will "forget" and go back on what you thought was agreed. Best to choose a property you like as it is rather than banking on the landlord delivering any improvements before your tenancy starts.

When looking for a rental ask what all the fees are and factor that into your prices comparisons e.g. add a years fees/12 to the monthly rent. Fees vary greatly between agents. Not all landlords use agents but how easy they are to find depends on area.

Be prepared for quarterly inspections.

Don't rent somewhere that's up for sale also or you will be plagued with viewings.

Ask for a copy of the tenancy agreement and any other paperwork upfront, take it away and read it through well in advance of having to sign.

Look up the property at the land registry (cost three quid) and check the property owner is the person you have been told is the landlord.

We bypassed employer and income references by paying the first six months upfront. However that was a few years ago and things may have tightened up since then.

We also had a few weeks between exchange and completion and only signed up to the rental on exchange. Letting agents will be used to this. How long they hold the property for you will depend on when the current tenant is due to leave and how fast moving the market is. At least have a chat to a few agents to make sure you can pass referencing before you exchange on your sale. I;d suggest sussing out storage as well so you have a plan B if the rental falls through at the last minute.