Complicated Letting arrangement - Views?

[Deleted User]

I'd run its too complicated if something goes wrong.

If they are that wealthy let him buy her a property.

merlin51

Thanks for all your input

Miss A would not pass credit checks either hence Daddy paying the rent through the company. They have offered to pay 6 months rent for a 6 month fixed term contract.

My main concern is that I would have no legal relationship with the person actually living in the property.

It's a judgment call, not sure which way to call it right now!

Pixie5740

merlin51 wrote: »

It's a judgment call, not sure which way to call it right now!

Hell no! That's the way to call it. Unless this property is particularly difficult to let (in which case you should really sell) find an easier tenant who can have an AST. Setting up a commercial tenancy could be against the terms of your mortgage (if you have one that is) and could require a different type of insurance.

dimbo61

RUN FORREST RUN !
Time to tell Letting Agents to Foxtrot Oscar as well.
They are not looking after your Interests

Missus_Hyde

dimbo61 wrote: »

RUN FORREST RUN !
Time to tell Letting Agents to Foxtrot Oscar as well.
They are not looking after your Interests

Quite!!

The words "don't", "touch" and "bargepole" come to mind!! :cool:

davidmcn

merlin51 wrote: »

Miss A would not pass credit checks either hence Daddy paying the rent through the company. They have offered to pay 6 months rent for a 6 month fixed term contract.

My main concern is that I would have no legal relationship with the person actually living in the property.

"Proposed tenant wouldn't pass credit checks" (incidentally, why not?) => "tenant provides acceptable guarantor", not "tenant's dad proposes that some company with which he seems to have a tenuous connection enters into a lease which isn't an AST".

G_M

Out of interest, which nationality?

merlin51 wrote: »

Mr A, an overseas 'businessman' wants to rent a flat for his adut 'daughter', Miss A and her 'colleagues', who lives and 'works' in UK. Mr A's UK businesses are handled by Mr B through Mr B's pimping company Xltd. Mr A is Mr B's only client in the town.

It is proposed that Xltd is the tenant for Mr A's personal reasons :rotfl: (said to be tax related). The usual credit checks reveal that Xltd is essentially a shell company, only has Mr B and Mrs B as directors and no money or assets.
Of course not. All transactions are in cash!

Because of the failure of the credit check the offer has been made of 6 months rent paid up front, with the assurance that 6 months more will be paid further down the line.
thus assisting in keeping you, the landlord, at arms length for as long as Miss A and her numerous colleagues remain working at the property.

So.....what would be going through your mind when presented with this proposal?

The above thoughts went through my mind.

TBagpuss

merlin51 wrote: »

Thanks for all your input

Miss A would not pass credit checks either hence Daddy paying the rent through the company. They have offered to pay 6 months rent for a 6 month fixed term contract.

My main concern is that I would have no legal relationship with the person actually living in the property.

It's a judgment call, not sure which way to call it right now!

So, why can't Daddy lend Miss A the money, and she can then rent in her own name, paying the 6 months rent (plus deposit) up front - tenancy in her name so you have a legal relationship with her.

TBagpuss

..But I agree with other posters, unless the flat is very hard to let, pass and look for a more conventional tenant!

merlin51

So we've made a decision - a six month let with all rent paid up front, the company will indemnify for any breaches of the terms by the occupier and full ID check on the occupier.

Whilst not exactly desperate to let quickly the local rental market is currently over supplied because of a huge new development of similar sized flats in arguably a better location than ours so on balance and with eyes wide open we came to the conclusion that we would go with this arrangement and see.

Thanks for all your sage advice - I allow you to come back and say "told youso" if things go wrong!