Choosing Tenants

antilles

Hi everyone

I'm in the process of letting my house and am showing round prospective tenants. Two of them are looking to put a holding deposit down. Property is currently empty hence I'm still paying utilities and council tax.

Option 1 - married couple with 2 young kids, both employed full time, live locally, know the area well and kids go to local school. Been in current property over 3 years. Looking to upsize/get more space. They say credit is good (not checked credit or references yet) Only downside is they can't move in for 5 weeks as current landlord needs notice.

Option 2 - company owner/self employed (couple) that can move in immediately (says current landlord is selling up so they can move immediately). Says he has poor credit from setting up their company so would fail credit checks, but they are able to pay deposit and first month's rent immediately.

I haven't done any credit checks yet but...I want to let ASAP so feel like 5 weeks is a long time to wait given the costs associated with keeping a house empty. However my gut feel is that option 1 would stay for longer and looks like a good tenant. Any thoughts on which prospect to go for?

Thanks

kinger101

I'm not a landlord, but No. 1 seems the more stable option. You'd need more information from No. 2. Anyone can set up a company or claim they're self-employed. Doesn't mean they have an income.

G_M

5 weeks is not that long and far better to lose 5 weeks rent and pay utilities etc but end up with potentially years with reliable tenants than rush into a contract with a potentially unreliable tenant who might leave in 6 months (more costs) or worse need evicting for arrears.


* offer to split the difference? Tenancy start date in 3 weeks not 5? When the family actually move in, or whether they are repared to pay 2 rents for 2 weeks, is up to them.
* take a holding deposit and make clear in writing it is non-refundable if they pull out
* As property is currently empty there's little risk in signing a tenancy agreement (risk would be if you had existing tenants who might renague on vacating as promised, meaning you be breaching the new tenancy agreement) and taking the first rental payment / security deposit (don't forget to protect it within 30 days of receipe, not 30 days of tenancy start date....)

conradmum

I would go with the first tenant. Letting your property to someone who has a bad credit rating and who is running a new company is asking for trouble. You can be sure that if cash flow becomes a problem the rent will be the first thing they skip on paying.

antilles

Thanks for the replies folks, very helpful indeed.

I spoke to Tenant 1 again and due to the way their tenancy agreement works, they can't actually give notice until the end of the calendar month, so they're already offering to basically split the difference (i.e. a 2 week crossover). So it actually works out they have roughly 7 weeks left on their current tenancy - but they'll be renting my place 2 weeks early. So that sounds pretty fair to me.

My gut feel (which I think is confirmed by replies) is that they'd be long term tenants as they are looking to stay on the same estate but just upgrade to a large property.

I spoke to tenant 2 again and they're having difficulty providing me any reliable paperwork confirming their company income, and a few things they've told me aren't checking out so I think tenant 1 will be the choice.

Appreciate the help/advice!

G_M

antilles wrote: »

I spoke to Tenant 1 again and due to the way their tenancy agreement works, they can't actually give notice until the end of the calendar month, so they're already offering to basically split the difference (i.e. a 2 week crossover). So it actually works out they have roughly 7 weeks left on their current tenancy -

Seems strange, but as this is

a) 3rd hand and
b) not really within your power to check/advise
you'll probably have o take it at face value.


To start with, they can give notice early ie tomorrow - it is the date that notice expires that is likely to be fixed eg 7 weeks (unusual but you/we'd have to read/understand their TA to know for sure).

antilles

G_M wrote: »

Seems strange, but as this is

a) 3rd hand and
b) not really within your power to check/advise
you'll probably have o take it at face value.


To start with, they can give notice early ie tomorrow - it is the date that notice expires that is likely to be fixed eg 7 weeks (unusual but you/we'd have to read/understand their TA to know for sure).

I thought it was strange too, because having rented myself in the past normally you just give a straight month. But as you say I have to take it at face value without seeing their AST. Works for me though and hopefully they will be a good tenant, certainly appear less risky than option 2.

ognum

antilles wrote: »

I thought it was strange too, because having rented myself in the past normally you just give a straight month. But as you say I have to take it at face value without seeing their AST. Works for me though and hopefully they will be a good tenant, certainly appear less risky than option 2.

I think if you are going to be a LL you need to do a bit of reading on how ASTs work and your responsibilities.

The notice period is not a calendar month it is a month from the start of the Tenancy. So start Tenancy on 18th the notice period is a month from the 18th of any month after the fixed term.

The tenant can give notice on the 23rd but there notice period will not start until the following 18th of the month.

The same conditions apply to you the LL when giving notice except you must give two months notice.

getmore4less

If the tenancy is end/start of month then 1 month end May to end June would be 7 weeks from tomorrow.

If they are local I would go round and look at where they live now.

BarleyGB

antilles wrote: »

I thought it was strange too, because having rented myself in the past normally you just give a straight month. But as you say I have to take it at face value without seeing their AST. Works for me though and hopefully they will be a good tenant, certainly appear less risky than option 2.

That’s not been the case with properties I’ve rented, I.e notice isn’t applied a month from the date given. In my case it’s been as per prospective tenant 1, notice is is applied at the monthly date the tenancy runs to. If the date is 21st month, if I serve notice 10th May, it would be active 21st May, I’d vacate 20th June.

I’m also a landlord, from the info given id choose prospective tenant 1 over 2. Steer clear from anyone with credit problems or unable to provide clear documents, income evidence.

Simby

Another for tenant 1.

If the time bothers you could you do another set of viewings and see if you get any other takers, that are good prospects.

When I was a landlord I tried to get young professional couples with no kids with both working and in their employment continuously with no breaks in employment.. However it does depend on what sort of property you have , the type of tenant you attract.

Couples with young kids can increase wear n tear on a property. However if a choice between the two options above I would accept option 1, option 2 I would not consider under any circumstances .