Paying rent in advance.

lavvy

If after selling a jointly owned house if it was decided to pay a years rent up front on a new home out of sold houses equity, would this avoid the need for a guarantor as the person is only working part time with 2 children. Thanks.

sparky130a

lavvy wrote: »

If after selling a jointly owned house if it was decided to pay a years rent up front on a new home out of sold houses equity, would this avoid the need for a guarantor as the person is only working part time with 2 children. Thanks.

What does the landlord / agent say?

EachPenny

It depends on the landlord and more importantly the agent, and also the area you are looking in. If demand for properties is high then the landlord is likely to go with a tennant with the guarantor, or a high earner.

It makes no sense because a high earner could lose their job without much warning, but that's the way it works. A recent trawl round four large towns didn't find a single agent who was even willing to put the idea of up-front rent to a landlord, let alone actually finding a property with a landlord who might agree to the idea.

But that experience may be a reflection on the towns being looked at, rather than what you may find where you are looking.

TV programmes like Benefits Street have been mentioned by agents as the main reason for landlords not being interested in anyone without a well paid full-time job, or an equally reliable guarantor.

lavvy

It is a hypothetical question for the future as the house isn't sold yet, but expected capital should be quite high. Unfortunately the person doesn't earn enough to get a mortgage but can afford a reasonably high rent. I would have thought that a landlord would prefer an advance payment than risk a monthly rent.

EachPenny

lavvy wrote: »

I would have thought that a landlord would prefer an advance payment than risk a monthly rent.

I thought the same too, especially if the LL has mortgaged themselves up to the eyeballs to buy, or has shelled out a fortune to do improvement work. If I was a landlord I would want my agent to let me know if prospective tennants were willing to offer an up-front rent payment.

But my experience is different - it isn't the economics which drives the decision, it appears to be LL fear that a tennant not earning enough is going to be a problem tennant.

However, if it is a case of the person not earning enough for a mortgage, but more than enough to cover the rent then it might not be such an issue - it really will depend on the agent, landlord, competition and the amount earned relative to the monthly rent.

In a hypothetical case of a parent of two children (who live with that parent) agreeing to sell a house jointly owned by another person - for the sake of discussion let's say the other parent - then the first parent needs to be absolutely sure before finally agreeing to the sale that they will be able to rent somewhere privately in their financial circumstances. I'd go as far as saying they should actually have the keys and move in to the rented property before the sale of the jointly owned house is completed. Otherwise they run the risk of being trapped in a situation where although they are capital rich they are, in effect, homeless. They will also discover there is little help available for someone in that situation.

The hypothetical person may need to become 'selfish' for the benefit of themselves, and more importantly the children, regardless of the impact that might have on the longer-term relationship with the other parent. Giving up the security of the children's owned home is not something to be done lightly.

Asking the question on the relationships board would probably get many responses along the same lines.

Slithery

A lot of landlords don't accept rent in advance because this is the route that brothels and cannabis farms use.