Any issues with renting to Skilled Worker Visa people?

lesley2020

Thinking of renting single house to three very nice Filipinos who have come over on a Skilled Worker Visa - their jobs are secure and they are hard-working and reliable.

As they brought little with them and were renting in an over-priced company house previously I will leave beds and pots and pans etc. so I guess you can call Furnished.

Are there any issues I should know about which might make it difficult to rent to SWV people?

I'm thinking if there are any difficulties with getting them registered for utilities or if the BuyToLet (small) mortgage people have issues renting to this group or if BTL House Insurance has issues? They've been in the country 6 months now and I believe that they faced problems with the regular banks (mind you don't we all...)

Thanks in advance

propertyrental

Make sure you do the proper 'Right To Rent' check.
Right to Rent (Mandatory checks on tenants' immigration status)

Potentially (worst case) there's a risk they run up arrears, cause damage then disappear back to Phillipines. Not much you can do as the Tenant Fees Act restricts deposits to 5 weeks rent now, but a UK guarantor would be a safety net if they have one.

Doubt the mortgage lender will be a problem provided it's a proper AST.

Utilities might require pre-payment meters but that's really a matter between the tenants and utilities.

You could of course leave utilities in your name and include the cost in the rent- always tricky ensuring you build in sufficient extra rent.

Possibility this would be an HMO......

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

lesley2020

Thanks very much for the info - luckily I know their work situation is reliable and they have already had a Right To Rent check (as part of the Skilled Worker Visa thing they have to stay with their sponsoring company for 3 years and they are still in their 1st year) so they will have the necessary dough.

As they are nice and well-behaved people I'm not personally concerned about having a Guarantor - it is more if for some reason the House Insurance or Utility people neededit.

The only issue is that at the last place they did all the right stuff in wriiting to the utility people to tell them that they were the new tenants (actually to be accurate the 'tenant' was the biggish firm employing them - it was the latter who signed the tenancy - not sure how legit that was) and were ready to start paying bills. That was 6 months ago and the various utiility places have yet to get everything fully in place! (and they have already handed in their 1 month notice).

Understand the point about the HMO. Did consider offering to include bills but obviously with gas and electricity being the price they are it is difficult to quantify - hence us agreeing to leave bills out and do it as rental cost only.

The nice thing about them is that they are not the whiney type - so I've explained that I need to replace some of the carpets and will do it asap but they are happy as long as the place is clean.

glennevis

Is the property built to HMO standards? Three unrelated occupiers would constitute an HMO,  how this affects you depends on the rules in your area. 

Ratkin007

If not already done, check local authority website if additional licensing is in place and article 4 re HMO. It may be that you need planning permission and/or a licence.  

propertyrental

lesley2020 said:

......... they have already had a Right To Rent check (as part of the Skilled Worker Visa thing they have to stay with their sponsoring company for 3 years and they are still in their 1st year) so they will have the necessary dough.
That's all probably fine but does not remove your legal obligation to do the right to rent check yourself before granting a tenancy. See the link. 

........

The only issue is that at the last place they did all the right stuff in wriiting to the utility people to tell them that they were the new tenants (actually to be accurate the 'tenant' was the biggish firm employing them - it was the latter who signed the tenancy
So the previous landlord had a commercial tenancy with their employer, not an AST
If you are considering doing the same, be aware that will almost certainly raise issues with your mortgage lender, your insurer, and your freeholder if you own a leasehold flat.

- not sure how legit that was) and were ready to start paying bills. That was 6 months ago and the various utiility places have yet to get everything fully in place! (and they have already handed in their 1 month notice).
Help them set it all up (for your property not the previous one!)
* Pre-print letters in their name(s) for them to sign requesting new accounts, with starting date meter readings
* separately write in your name requesting a closing account (including closing meter reading) and giving the tenants' names as taking over the account from you.

Similar with council tax unless this a council tax HMO (not the same as an HMO!)

...................................................................

lesley2020

glennevis said:

Is the property built to HMO standards? Three unrelated occupiers would constitute an HMO,  how this affects you depends on the rules in your area. 

Thanks for the steer - it is a standard 3-bed semi but given the HMO issues I probably wouldn't attempt. They are happy to rent as a group of friends.

lesley2020

Ratkin007 said:

If not already done, check local authority website if additional licensing is in place and article 4 re HMO. It may be that you need planning permission and/or a licence.  

Definitely sounds too complicated so shall avoid ! Thanks.

lesley2020

propertyrental said:

lesley2020 said:

That's all probably fine but does not remove your legal obligation to do the right to rent check yourself before granting a tenancy. See the link. 

........

So the previous landlord had a commercial tenancy with their employer, not an AST
If you are considering doing the same, be aware that will almost certainly raise issues with your mortgage lender, your insurer, and your freeholder if you own a leasehold flat.

Help them set it all up (for your property not the previous one!)
* Pre-print letters in their name(s) for them to sign requesting new accounts, with starting date meter readings
* separately write in your name requesting a closing account (including closing meter reading) and giving the tenants' names as taking over the account from you.

Similar with council tax unless this a council tax HMO (not the same as an HMO!)

...................................................................

Thanks again - really handy advice re helping them set it all up. Nice people so don't mind spending time especially since their issues with the utilities (genuine not just them trying to avoid - previous tenant had been a 'bad' one so they had a slew of court orders arrive against him - even though departed and probably in jail).

Re Commercial tenancy - the owner of the house rented out the property via a local agency and the named tenant was the company who employs the group. So the various people did not sign any tenancy - they just paid market rates to their own employing company for the various rooms. Actually not a great deal for them...

Their employing company is pretty disorganised and a bit of a law unto itself - they are 'asked' to do 8 12 hour shifts in a row - which is why I think they would like to find their own landlord!

I'm guessing that a lot of Skilled Worker Visa people are in the same boat - told they can't move employers for 3 years and more or less having to live in market-rate accommodation from the employer unless they can find their own.

propertyrental

lesley2020 said:

propertyrental said:

lesley2020 said:

That's all probably fine but does not remove your legal obligation to do the right to rent check yourself before granting a tenancy. See the link. 

........

So the previous landlord had a commercial tenancy with their employer, not an AST
If you are considering doing the same, be aware that will almost certainly raise issues with your mortgage lender, your insurer, and your freeholder if you own a leasehold flat.

Help them set it all up (for your property not the previous one!)
* Pre-print letters in their name(s) for them to sign requesting new accounts, with starting date meter readings
* separately write in your name requesting a closing account (including closing meter reading) and giving the tenants' names as taking over the account from you.

Similar with council tax unless this a council tax HMO (not the same as an HMO!)

...................................................................

Thanks again - really handy advice re helping them set it all up. Nice people so don't mind spending time especially since their issues with the utilities (genuine not just them trying to avoid - previous tenant had been a 'bad' one so they had a slew of court orders arrive against him - even though departed and probably in jail).

Re Commercial tenancy - the owner of the house rented out the property via a local agency and the named tenant was the company who employs the group. So the various people did not sign any tenancy - they just paid market rates to their own employing company for the various rooms. Actually not a great deal for them...

Their employing company is pretty disorganised and a bit of a law unto itself - they are 'asked' to do 8 12 hour shifts in a row - which is why I think they would like to find their own landlord!

I'm guessing that a lot of Skilled Worker Visa people are in the same boat - told they can't move employers for 3 years and more or less having to live in market-rate accommodation from the employer unless they can find their own.

None of that is relevant to you unless you plan to do the same ie rent to the company not the occupants.

Do check if local landlord licencing is required. Council website. You can't avoid it (well,, you can if happy to break the law!)

Likewise local HMO rules. Simply putting the 3 names together as joint and several tenants may or may get round HMO rules, but check.

lesley2020

Thanks - definitely wouldn't rent to the company as they are far less trustworthy than the Filipinos!