Renters' Rights Bill - Will it screw me over?

Mr.Generous

PacketofCrisps said:

Olinda99 said:

PacketofCrisps said:

So let me get this straight, I understand that this amendment to the renters bill makes it illegal for landlords/agencies to demand more than 1 months rent but does it also make it illegal for a renter like myself to offer to pay say 6 months rent up front? 

 

Illegal for a landlord to accept your offer, not illegal.for you to make it

"Once enacted, the Renters’ Rights Bill will amend the Tenant Fees Act 2019 to prohibit landlords or letting agents from requiring or accepting any payment of rent in advance of the tenancy being entered into. "

That's me buggered then, can't believe that, I'm a low income earner and being able to pay upfront gives me a chance to get a rental property, now landlords will only accept higher earning tenants, this does nothing to help the poorer tenants that are sensible with money. 

Not necessarily, I let out nice houses, but I want long term tenants. I look at who is a good fit for the property and who I think will stay. I have not ever made the decision based on highest income. The wealthy tenant may well save a deposit and buy or move to a bigger place, or move with work. I took a carer over a pharmacist at one house. She's still there 4 years later. Don't despare, I take tenants who I like talking to and get on with, try and meet the landlord (or agent if they are making the decision) in person and have a chat. Express enthusiasm for the property and stress you will look after it and stay!

Obviously I can only speak for myself, but I frequent landlord forums and most of the decent landlords have long term tenants in a mutually beneficial arrangement. Sure I could get a bit more rent from a high earner, but 1 empty month when they move on costs me about 2 1/2 months rent - tenant finder fees, lost rent, utilities and council tax. Long term tenants who pay the rent and look after the property are what landlords want. Fit the bill and you'll be fine!

FlorayG

If @PacketofCrisps can't pass the affordability checks though but can afford the rent ( this happens a lot, look at the number of people renting who can't get approval for a mortgage that would cost them the same) then the only way to prove their worth is to pay upfront. They won't be allowed to do this in future

saajan_12

FlorayG said:

saajan_12 said:

In a word, yes - there will still likely be houses you can rent, but likely at a higher price or restricted to the less desirable properties. 

Previously, I'd see a working tenant vs non working with a strong guarantor vs student / recent graduate and able to pay a couple of months ahead as relatively even, and I might choose based on other smaller things eg start date, likelihood of staying longer, or rent amount offered. With the changes, paying ahead won't be allowed so that candidate would be a last resort and unless they offered a chunk more rent, it wouldn't make sense to pick them. If I had a less desirable property, perhaps that's the only person looking as those with a stronger income or guarantor are now first in line for the more desirable properties. 

There are things that are wrong with the rental market.. having an initial fixed term or rent upfront is not one of them. 

That's going to be illegal as well. You will have to rent at the price you advertise

Wowza, right you are it seems. 
Really creating a contrived market here, which'll just get LLs to price properties higher from the start. Really seems they've only thought about the classic model tenant with an extensive job and referencing history, while ignoring the umpteen circumstances that can leave tenants with the means but just not all the proof that would demonstrate this to a referencing process, who now also don't have any additional leverage to be chosen for rentals. 

Besides, I wonder how this could even be effective when the agent could just amend the advert based on a higher offer before accepting it. 

Olinda99

you don't have to rent at the price you advertise - you can accept a lower offer

so advertise at a much highter rent, think about offers below. You couldn't make it up.

FlorayG

Olinda99 said:

you don't have to rent at the price you advertise - you can accept a lower offer

so advertise at a much highter rent, think about offers below. You couldn't make it up.

Nope, the new bill specifically says you have to rent at the price you advertise; besides which, if you overprice it nobody will apply

saajan_12

FlorayG said:

Olinda99 said:

you don't have to rent at the price you advertise - you can accept a lower offer

so advertise at a much highter rent, think about offers below. You couldn't make it up.

Nope, the new bill specifically says you have to rent at the price you advertise; besides which, if you overprice it nobody will apply

Not what my read of the guidance here states:
https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

Once enacted, the Renters’ Rights Bill will require landlords and letting agents to publish an asking rent for their property. It will also prohibit them from asking for, encouraging, or accepting any bids above this price.

The point is its never an exact science until you actually get people responding to adverts and viewings (or not).. Whether its pitched too high or low, people aren't going to offer over market so its still going at a fair rent. However with this new rule, LLs will err on the side of too high as they can't accept higher if it turns out to be too low. This new higher advertised rent will just mean that's what market rents are benchmarked at for rent increase reviews etc. 

Olinda99

FlorayG said:

Olinda99 said:

you don't have to rent at the price you advertise - you can accept a lower offer

so advertise at a much highter rent, think about offers below. You couldn't make it up.

Nope, the new bill specifically says you have to rent at the price you advertise; besides which, if you overprice it nobody will apply

could you provide a link because although of course I could be wrong my understanding is that you cannot offer above the advertised rent but you can certainly offer below

BungalowBel

I do not have a rental property now, I sold it last September. However, I would not rent to someone with no income unless they had a guarantor OR could pay me in advance.  If paying in advance is going to be made illegal, then sorry I wouldn't rent to you as you have no guarantor.  I couldn't afford to take the risk.

Having said that, I hope you find somewhere.

Eliza_2

Can I just check this?  I've read that it will become illegal for landlords to demand a year/6 months/ whatever rent in advance but cant see anywhere that says tenants can't offer this.  I'm looking at renting a house and would like to pay a year ahead both to help the landlord out with the cost of some improvements she wants to do (and which will benefit me) and secure it for myself.  Would it be illegal for landlords to accept this deal as it feels like a win/win all round?  

FlorayG

Eliza_2 said:

Can I just check this?  I've read that it will become illegal for landlords to demand a year/6 months/ whatever rent in advance but cant see anywhere that says tenants can't offer this.  I'm looking at renting a house and would like to pay a year ahead both to help the landlord out with the cost of some improvements she wants to do (and which will benefit me) and secure it for myself.  Would it be illegal for landlords to accept this deal as it feels like a win/win all round?  

You can do it if you do it before the bill becomes law, but after it becomes law it's legal for you to OFFER but illegal for the LL to ACCEPT more than a month's rent, so any LL who does accept it is putting themselves at risk of a huge fine. So if you have the house available now, take it now and pay up front while you still can