Affordability for rental and impact of Covid

Jeremy535897

Work references, probationary period, so employment, plus being a student, and self employment on top?

Carrying on a business from residential property is also a problem, unless it involves services rather than goods.

Grumpy_chap

Jeremy535897 said:

Carrying on a business from residential property is also a problem, unless it involves services rather than goods.

That could depend entirely on the nature of the services (or, indeed, goods):

• If it is professional services, such as Accountancy, where the contact with the Client is remote, then I agree with your assessment.
• If it was a service requiring contact with the Client, such as Piano Teacher, then the regular visitors to the property, parking, etc. could be problematic.

Similarly, with goods:

• If it is infrequent deliveries of relatively small items that are then split, or re-packaged, or value added in some way and re-sold, that might mean only a couple of Sprinter delivery vans in a week plus the OP walking to the post office to dispatch as and when.  Might be perfectly fine.
• If it is something bulkier, or delivered on pallets, or simply higher volumes and storage in the yard etc., might be an inconvenience.

RachelNE

Jeremy535897 said:

Work references, probationary period, so employment, plus being a student, and self employment on top?

Carrying on a business from residential property is also a problem, unless it involves services rather than goods.

It’s a service - pelvic health, movement and injury rehabilitation coaching - so no impact on local parking or noise etc. Similar to that of anyone working from home across the past 18 months if you were. 

It is the affordability aspect that appears problematic for agents; my father has nothing impacting on his affordability (is in full time work and a home owner). 

Grumpy_chap

RachelNE said:

It’s a service - pelvic health, movement and injury rehabilitation coaching - so no impact on local parking or noise etc. Similar to that of anyone working from home across the past 18 months if you were.

Having customer visit the property is not quite the same as simply WFH.  It may concern some LL's as they view it as converting the premises to commercial use and parking considerations will be in their mind.  The LL does not know the business in the same way you do.  

Do you need to tell the LA / LL that you want to run a business?  Why not simply say you need a garage?

RachelNE said:

It is the affordability aspect that appears problematic for agents; my father has nothing impacting on his affordability (is in full time work and a home owner). 

The calculation of affordability takes into account far more than simply being in full time work and being a home owner. 
 
The LA will be assessing the ability of your father (guarantor), in the event that you do not pay the rent, to settle any arrears and meet the ongoing rental of £500 or more.  That assessment will consider your father's income, liabilities (mortgage / car loan, etc.) plus other outgoings - then they want to see the £500 left over.
The guarantor's credit history will also be reviewed by the referencing company.

Many employed home owners that do not have the ability to meet a further ongoing liability of £500 per month on top of everything else.

Of course, your father may be on a high salary and mortgage / debt free, but then the assessment would be able to see that £500 monthly is not an issue.

sheramber

Covid affordability may be the easy answer rather than get involved with business use.

Does the person come to you?  That could involve liability insurance, possible change of use and and neighbour complaints.

Agents/landlords don't want complications.

Can you put your self employment on hold, move for your new job and look for a suitable palce once you are there.

What is more important- your self employment or the job?

TBagpuss

you might find that looking to rent direct rather than via a landlord widens our choices - try places like OpenRent and Spareroom - .maybe AirBnB initially.

Might it also be possible to look at lodging / house shares and rent some office space separately for your side business? There are options available to rent offices for a day / half day / by the hour in many places which might be a way round needing space

tourist4ever

In terms of guarantors these need to earn usually 36 times the monthly rent amount per annum so if the rent is £1000 pcm the earnings should be minimum 36000 per annum. So unless your father makes a lot less the issue just might be landlord's are not looking for tenants with guarantors, this does put some people off.

Grumpy_chap

tourist4ever said:

guarantors need to earn usually 36 times the monthly rent amount per annum so if the rent is £1000 pcm the earnings should be minimum 36000 per annum. 

That seems rather simplistic.
£36k/annum salary is around £2,350 per month take home.
What if father has a mortgage to pay, say £800/month, plus a PCP car £300?  The remaining £1,250 is not enough to meet the father's household bills plus cost of living plus the guarantor obligations of called to do so.