Renting: 6 months up front for a 6 month contract, but still want guarantor?

Cakeguts

The simple answer to this question is that for someone who isn't working the risk is too high to the landlord. Letting agents follow the request of their landlords. None of the landlords in the area that he is looking in are prepared to take the risk of someone in his position not moving out after the 6 months contract ends.


He is being much to fussy about where he lives for what he has to offer a landlord. In a situation like this you have to put yourself out a bit to find an area that is not rural and move to that and then find a landlord that will accept him. North Wales is close to Liverpool and Manchester. If he is not working there is nothing to stop him from moving to either of those areas. It might be inconvenient but that is what he will have to do to find somewhere to live.

pinkteapot

How soon is he exchanging contracts on his house sale?

You said he owns the house outright - presumably you mean no mortgage? If so, the proceeds of the sale will probably be more than he'd earn in several years! Has he told them that money's coming in?

If he hasn't exchanged contracts yet then the sale could fall through, so it won't help.

BigAnnieG

He doesn't want to lodge as he is in his mid-30s, and he's in Wales because he grew up in a city and that kind of life ruined his mental health (which is why he's living in the countryside: it was a case of 'rural peace or suicide' and I don't say that lightly at all).

I agree with you about being fussy, but the question really was more to do with having a guarantor when you're paying six months rent upfront - I've checked a bunch of MSE threads about renting and it seems that everyone (even HB tenants) has been requested to pay six months OR a guarantor - not both.

'Not moving out in his position' doesn't really make sense here: if you mean because he doesn't work, what's to stop someone who is working also not moving out? What if they stop paying the rent at the end of their tenancy but don't move out? What if someone is working when they get a tenancy but loses their job during it and refuses to pay?
This is what confuses me about it all: his 'position' is as a homeowner and ability to pay the full term of the contract, it shouldn't be how much monthly income there is 'just in case after the contract'. After the contract is after the contract - the future is anybody's guess.

We've offered an extra deposit to provide the landlady peace of mind, so let's see what they say.

BigAnnieG

@pinkteapot -He's supposed to be exchanging within the next couple of weeks - the buyer's mortgage company delayed some paperwork their side, it was already supposed to be exchanged. And yes, he would have plenty of money in the bank, but as the LA told me this morning: "He could have £300,000 in the bank but if there's no working income every month he needs a guarantor".

I know the lack of exchange doesn't help at the moment, but he still has the money I've loaned him to cover the six months of rent, two months' worth of deposit, living expenses and then some. His bank statements should satisfy, but apparently not!

Comms69

Has he considered contacting the agent he's selling via; they are more likely to be accomodating

BigAnnieG

I think it's the agent that's being difficult!

The landlady agreed via the agent to take him as a tenant, knowing that he wasn't working and is selling his house.

Then the actual lettings office of the agent, not the branch we'd been dealing with, said that he needed this guarantor and 6 months rent. They're not budging on it yet, even though the original agent has said the landlady knows his situation and was happy to rent it to him with just the up-front rent.

ETA: I see what you mean about his selling agent sorry - they're not local to us at all so wouldn't be in a position to help He left England to move to Wales for a quiet job in the countryside, and then the job fell through so he ended up stuck in the countryside!

pinkteapot

BigAnnieG wrote: »

as the LA told me this morning: "He could have £300,000 in the bank but if there's no working income every month he needs a guarantor".

This makes absolutely no sense. Sure, he could spend that £300,000 in the next six months and then not pay his rent. But someone with an income could spend it all on other things and not pay their rent.

Suspect you're right and someone at the agent's main office is applying the rules with a bit too much vigour - as the landlord and branch dealing with it were both happy - but if they stick to their guns there's nothing you can do that I can think of. Probably is time to view other properties and if they're through agents, explain his financial situation before even viewing and check they could/would accommodate.

BigAnnieG

Thanks pinkteapot - yes, he's seen some properties already and at all stages has been very upfront about his circumstances. At no point have agents had an issue - til the last house he almost got, where the same issue arose, and now this one. It seems to be such an uncommon circumstance that they become entirely unsure of how to handle it.

I entirely agree with you about someone working still spending all of their money - it seems like such an arbitrary piece of red tape that I'm hoping the LL and agent will be able to overlook.

The agent in touch with us (not the lettings office but the sales office helping to run the lettings in the area, as it's so rural) even said that this need for 6 months and a guarantor is technically optional for the LL - I secretly suspect it's a way to try and push more fees onto either the landlord or my friend for additional 'insurance' (or guarantor fees). At £400 fees already, I should hope that's not the case but we'll see!

Cheeky_Monkey

Ok so he doesn't want to be a lodger but, unless something changes, he might not have a choice.

However, I'm wondering whether the Landlady could 'overrule' the LA as they work for her not the other way round so they shouldn't be telling her what to do, other than the legal requirements.

BigAnnieG

Yep, I'm hoping she sees sense and tells them to jog on with their red tape She's hard to get hold of, so just waiting to hear back from her now, which could take another day...!

Thanks all for your responses I'll let you know if the LL sees sense!