Early retirement and renting?

bownyboy

Hi Everyone,

We're late 40s / early 50s and have a plan to rent out our house for a year (or longer) and rent somewhere by the coast. 

We will live off a combination of personal pensions, S&S ISAs, GIAs and rental income. 

From what I can remember, the last time we rented many years ago they asked for previous rental references, employer and bank references. 

We will only be able to provide bank references. 

Has anyone else done this? What has the reaction been from landlords and letting agents?

Thanks

OldMusicGuy

We are downsizing and living in rental between selling and buying houses, both early retired with no income, only savings and UFPLS withdrawals. The way we overcame the rental issue was to pay in advance. We paid six months in advance, and have just paid another five months in advance while we wait for our new place to be completed. That way we overcame any issue about being unemployed (not a lot of difference between that and early retired).

We started looking for rental in October last year so this was an issue back then. It might not be such an issue now as many LLs may be desperate for anyone they can get right now.....

bownyboy

OldMusicGuy said:

We are downsizing and living in rental between selling and buying houses, both early retired with no income, only savings and UFPLS withdrawals. The way we overcame the rental issue was to pay in advance. We paid six months in advance, and have just paid another five months in advance while we wait for our new place to be completed. That way we overcame any issue about being unemployed (not a lot of difference between that and early retired).

We started looking for rental in October last year so this was an issue back then. It might not be such an issue now as many LLs may be desperate for anyone they can get right now.....

Ah, I thought that might be the case. Thanks for your feedback. 

justme111

My ex was in a similar position when he rented - no problems has been offered a property he was after - one just needs to deal with an agency with common sense rather than computer.

Dox

bownyboy said:

Hi Everyone,

We're late 40s / early 50s and have a plan to rent out our house for a year (or longer) and rent somewhere by the coast. 

We will live off a combination of personal pensions, S&S ISAs, GIAs and rental income. 

From what I can remember, the last time we rented many years ago they asked for previous rental references, employer and bank references. 

We will only be able to provide bank references. 

Has anyone else done this? What has the reaction been from landlords and letting agents?

Thanks

Assuming you are in normal health, you do realise you won't be able to touch your personal pensions until you are at least 55?

shinytop

bownyboy said:

Hi Everyone,

We're late 40s / early 50s and have a plan to rent out our house for a year (or longer) and rent somewhere by the coast. 

We will live off a combination of personal pensions, S&S ISAs, GIAs and rental income. 

From what I can remember, the last time we rented many years ago they asked for previous rental references, employer and bank references. 

We will only be able to provide bank references. 

Has anyone else done this? What has the reaction been from landlords and letting agents?

Thanks

We are doing this now.  We sold late last year an moved into rental to look for somewhere to buy, with no employer or landlord references.  No bank references either, just a credit check (which is instant).  We paid deposit + 6 months in advance; no problems at all.  In fact we were able to organise it very quickly because there was no need to wait for/chase up references.  Interestingly, the agent keeps the advance payment and pays the LL every month.   

bownyboy

Dox said:

Assuming you are in normal health, you do realise you won't be able to touch your personal pensions until you are at least 55?

Yes of course, hence the combination of ISAs, GIAs and rental income as well.

bownyboy

shinytop said:

We are doing this now.  We sold late last year an moved into rental to look for somewhere to buy, with no employer or landlord references.  No bank references either, just a credit check (which is instant).  We paid deposit + 6 months in advance; no problems at all.  In fact we were able to organise it very quickly because there was no need to wait for/chase up references.  Interestingly, the agent keeps the advance payment and pays the LL every month.   

That’s what I was wondering. How is the six months rent managed? What if the agent ran off with the money or went under? Assume you’d still be liable for rent. 

shinytop

bownyboy said:

shinytop said:

We are doing this now.  We sold late last year an moved into rental to look for somewhere to buy, with no employer or landlord references.  No bank references either, just a credit check (which is instant).  We paid deposit + 6 months in advance; no problems at all.  In fact we were able to organise it very quickly because there was no need to wait for/chase up references.  Interestingly, the agent keeps the advance payment and pays the LL every month.   

That’s what I was wondering. How is the six months rent managed? What if the agent ran off with the money or went under? Assume you’d still be liable for rent. 

Hmm, never thought of that tbh.  What happens with normal monthly rental if it goes via an agency and they go under?  The EA in question is a well known name in the area, not that that's any guarantee of course. 

MaxiRobriguez

Rental references provide two things: 1) Confidence of payment 2) Confidence you won't wreck the place. 

Given you're in your mid years and are backed by an asset then if it were me I'd put you to the top of my "trust" pile immediately, regardless of reference.