Negotiating after a failed referencing check

Velli

Hi guys, I’m a contractor that’s looking to leave home. I’ve found a lovely apartment that ticks all of my boxes & quite eager to secure it. After having done a viewing, putting down a holding deposit & gone through the referencing checks I was informed that the landlord was apprehensive in agreeing a 12 Month Tenancy with a contractor and wants 6 month rent in advance. Problem is I cant afford 6 month but I can afford 2 months. I’m thinking of putting forward the following offer:

Offer: 12 Month Tenancy with 6 Month Break Clause

• 30th April - Deposit & 2 Months Rent
• 30th June - 2 Months Rent

• 30th August - 2 Months Rent

• Break Clause

• Further 6 Month Tenancy with no increase & Rent Paid Monthly

Am I making a mistake? Am I being naive? Am I overlooking something? Is this even attractive? Are break clauses good for the tenant or the landlord?

As you can tell I’m clueless when it comes to this kind of thing but I was hoping if someone can weigh in. Thanks for your input & advice.

[Deleted User]

Velli said:

Hi guys, I’m a contractor that’s looking to leave home. I’ve found a lovely apartment that ticks all of my boxes & quite eager to secure it. After having done a viewing, putting down a holding deposit & gone through the referencing checks I was informed that the landlord was apprehensive in agreeing a 12 Month Tenancy with a contractor and wants 6 month rent in advance. Problem is I cant afford 6 month but I can afford 2 months. I’m thinking of putting forward the following offer:

Offer: 12 Month Tenancy with 6 Month Break Clause

• 30th April - Deposit & 2 Months Rent
• 30th June - 2 Months Rent

• 30th August - 2 Months Rent

• Break Clause

• Further 6 Month Tenancy with no increase & Rent Paid Monthly

Am I making a mistake? Am I being naive? Am I overlooking something? Is this even attractive? Are break clauses good for the tenant or the landlord?

As you can tell I’m clueless when it comes to this kind of thing but I was hoping if someone can weigh in. Thanks for your input & advice.

I wouldn’t bother asking for the break clause as many of them are poorly written and it doesn’t give you any more security than a 6 month fixed term anyway. 

numbercruncher8

Seems to complicated to make much of a difference, or swing it against a 'regular' applicant. Of course if it is an area where renters are scarce it may be different.
All the landlord might infer at this point is that you haven't got 6 months in savings. Given that there is some serious turbulence ahead for the economy that isn't going to fill them with confidence.
You can but try, a more effective way might be to get a guarantor involved. Or just borrow the money to make up the deposit (interest rates can be low if you are in good standing with the bank).

Velli

numbercruncher8 said:

Seems to complicated to make much of a difference, or swing it against a 'regular' applicant. Of course if it is an area where renters are scarce it may be different.
All the landlord might infer at this point is that you haven't got 6 months in savings. Given that there is some serious turbulence ahead for the economy that isn't going to fill them with confidence.
You can but try, a more effective way might be to get a guarantor involved. Or just borrow the money to make up the deposit (interest rates can be low if you are in good standing with the bank).

Interesting, I wouldnt be able to secure a guarantor or a loan as Ive only recently cleaned up my financial act.
Is a 6 month tenancy more attractive than a 12 month from the landlords point of view?
Also if he refuses this counter offer where do I stand in getting back my holding deposit?

Velli

Lover_of_Lycra said:

Velli said:

Hi guys, I’m a contractor that’s looking to leave home. I’ve found a lovely apartment that ticks all of my boxes & quite eager to secure it. After having done a viewing, putting down a holding deposit & gone through the referencing checks I was informed that the landlord was apprehensive in agreeing a 12 Month Tenancy with a contractor and wants 6 month rent in advance. Problem is I cant afford 6 month but I can afford 2 months. I’m thinking of putting forward the following offer:

Offer: 12 Month Tenancy with 6 Month Break Clause

• 30th April - Deposit & 2 Months Rent
• 30th June - 2 Months Rent

• 30th August - 2 Months Rent

• Break Clause

• Further 6 Month Tenancy with no increase & Rent Paid Monthly

Am I making a mistake? Am I being naive? Am I overlooking something? Is this even attractive? Are break clauses good for the tenant or the landlord?

As you can tell I’m clueless when it comes to this kind of thing but I was hoping if someone can weigh in. Thanks for your input & advice.

I wouldn’t bother asking for the break clause as many of them are poorly written and it doesn’t give you any more security than a 6 month fixed term anyway. 

I threw that in there more for his benefit like 'hey if Im causing issues then you wont have to put up with me for the full 12 months' - Am I way off in my thinking here?

Slithery

Velli said:

I threw that in there more for his benefit like 'hey if Im causing issues then you wont have to put up with me for the full 12 months' - Am I way off in my thinking here?

Yes. Even if the LL wants to evict you then in the current situation it will take him at least 6-9 months after your tenancy expires to do so.

numbercruncher8

It could be inferred by the landlord as wanting the option to leave in case you can't afford it, but obviously I'm speculating here.
Landlords just want to be paid, to have reliable tenants who will look after the place and not be trouble. A 12 month deal from a reliable person is worth more than a 6 month, because after someone leaves they may face a void period of a few months while the place is marketed, and they still incur the same mortgage costs when it's empty.....
Not sure what else to suggest. Maybe a letter from employers saying the length of contract, or maybe a higher weekly rent to compensate? But that may be going too far. Just because this landlord wants money up front, doesn't mean others will, and they may have no problems with a contractor. 
They are within their rights to ask for what they want (and it is within your right not to accept the demand).

Velli

numbercruncher8 said:

It could be inferred by the landlord as wanting the option to leave in case you can't afford it, but obviously I'm speculating here.
Landlords just want to be paid, to have reliable tenants who will look after the place and not be trouble. A 12 month deal from a reliable person is worth more than a 6 month, because after someone leaves they may face a void period of a few months while the place is marketed, and they still incur the same mortgage costs when it's empty.....
Not sure what else to suggest. Maybe a letter from employers saying the length of contract, or maybe a higher weekly rent to compensate? But that may be going too far. Just because this landlord wants money up front, doesn't mean others will, and they may have no problems with a contractor. 
They are within their rights to ask for what they want (and it is within your right not to accept the demand).

Right well Im pretty much resigned to not getting this place if this counter offer fails. Employer has already confirmed that they have no plans to furlough me & I wouldnt want to pay anything more than the rent agreed. I suppose Ill still be home for a couple more months to save for that 6 months figure since Ill be contracting for the forseeable future

Velli

Slithery said:

Velli said:

I threw that in there more for his benefit like 'hey if Im causing issues then you wont have to put up with me for the full 12 months' - Am I way off in my thinking here?

Yes. Even if the LL wants to evict you then in the current situation it will take him at least 6-9 months after your tenancy expires to do so.

Ah I see I suppose its understandable from his point of view

Velli

Can I just confirm if Im within my rights to get back my 1 week holding deposit if the landlord refuses anything less than 6 months?

[Deleted User]

Show him your past contacting history if it is consistent or current contact. Explain that your work is in demand even in the current climate. Are you sure nobody can act as guarantor? I'm not sure why a holding deposit was taken before credit checks, it depends what was agreed. I wouldn't offer any additional months in advance.