Rent with no income but large savings - Renters rights laws ?

BlisteringBarnacles

WIAWSNB said:

You are a funny mix, BB! On one hand you appear very switched on regarding investments, and have yourself in a very fortunate position indeed. Very envious 😃 
And on the other, you appear - no disrespect - surprisingly naive regarding properties and how to 'deal' with them. This includes your 'dilemma' over whether to tell your current LL that you don't 'earn'! Well, d'uh, why would you?! It has no bearing on anything. 

* There's a Landlord site called 118. I've used that years ago to get info on something, and they were very helpful and informed. I might still have the logon details! It costs nothing to join, and they have a forum type section.

Hi WIAWSNB : Just a quick thank you to both of your detailed replies. Really appreciate you taking the time. 

Yes I am truly clueless when it comes to investing of any sort. Not only properties but even stocks for that matter. Lost a ton in the dotcom crash. And then I stumbled upon passive investing blogs (mostly American in those days) particularly bogleheads and read up about portfolio theory, asset allocation, asset classes and correlation, index funds, compounding etc. Investing for the masses. It appealed to my scientific training as it is evidence based. 

But of course the great investors don't get wealthy by investing in index funds. To be a great stock picker or buy a bargain property, do it up etc, one needs skills and/or good judgement which I lack. 

I reached FIRE the boring way : being well paid, index funds, optimising my taxes, utilizing my ISA, SIPP, getting lucky with company stocks, being frugal, and just growing old and let compounding do its magic. Certainly not something to brag about at parties :-) 

Thanks for the landlord forum. I have been posting here and reddit ukhousing, uklandlords and openrent. 

Regarding my hesitation to buy : Lack of commitment. Or if you have the time/patience to read a novel, you may read my recent reply on openrent : https://community.openrent.co.uk/t/retiree-with-large-savings-and-low-income-possible-to-rent/88013/10?u=nightwatchman

Thanks

BlisteringBarnacles

horsewithnoname said:

You asked earlier about a guarantor. I have been one, basically it means having an income and credit check much as you do as a tenant, and if the tenant doesn’t pay, then the landlord can get the money off the guarantor. So it needs to be someone who trusts you totally. 

Thanks. That sounds a tad worrying. I cant think of many people who would "trust me totally". My well paid former colleagues who are good acquaintances (if not lifelong friends) might hesitate, even if I show them my statements. I wouldnt want to obligate them either. The people who might agree are those friends who are on low wage. I do have a few friends like that. But given that they barely make ends meet I doubt a landlord / letting agent will be convinced they can act as a guarantor. 

As I said I am going to look at this positively. This will force me to take some action : either go back to my career, or buy a house or leave the country. 

BlisteringBarnacles

Okay here is what I am going to do : Approach my former colleagues / acquaintances and offer them a steel Rolex Daytona costing about £20,000 - that's about 18 to 20 months of rent. That's my "credit default swap". if I default, landlord will need 12 to 18 months to sort things out and my friend covers the default. 

Altho in reality these things will not happen and I collect the Rolex when I get out of renting :-)

_Penny_Dreadful

BlisteringBarnacles said:

Okay here is what I am going to do : Approach my former colleagues / acquaintances and offer them a steel Rolex Daytona costing about £20,000 - that's about 18 to 20 months of rent. That's my "credit default swap". if I default, landlord will need 12 to 18 months to sort things out and my friend covers the default. 

Altho in reality these things will not happen and I collect the Rolex when I get out of renting :-)

It's certainly a novel idea.

I'm not sure where the landlord needing 12 to 18 months to sort things out comes from.  What will the landlord be sorting out?  Your eviction?

Whoever ends up holding the Rolex Daytona would need to make sure it's insured.  Imagine they got burgled and couldn't return the watch once the tenancy ends.  You'd also need some kind of document drafted to demonstrate the watch isn't a gift but collateral for being a guarantor and must be returned at the end of the tenancy providing there were no rent arrears or damage.

I'd maybe be a guarantor for my children if/when they go to university or for their first home away from home but that's about it.  My brother asked me to be his guarantor and I know he is terrible with money so I declined.  It turns out he was in arrears in his previous rental so I'm glad I said no.

WIAWSNB

BlisteringBarnacles said:

Okay here is what I am going to do : Approach my former colleagues / acquaintances and offer them a steel Rolex Daytona costing about £20,000 - that's about 18 to 20 months of rent. That's my "credit default swap". if I default, landlord will need 12 to 18 months to sort things out and my friend covers the default. 

Altho in reality these things will not happen and I collect the Rolex when I get out of renting :-)

That is hilarious!
BB, I'd avoid seeking a guarantor at almost any cost. About the only one I'd entertain would be a truly willing parent - in essence, one that offered this service before even being asked.
Even if the risk of defaulting is utterly minimal, it is still a highly emotive issue, and carries a significant 'implied' risk, and personal baggage. The murkiest mix of 'money' and 'relationships' - deeply unpleasant. Seriously, only an option to undertake with a willing parent, and I suspect this isn't available?*
Do try the 118 forum - these are Landlords, so they'll give you the answer. (I'll see if I can find my old login details!)
I am nigh on certain that other options are already available too, such as payment of a number of months in advance. This is standard stuff.
Please don't ask folk to be a g'tor unless there is genuinely no other option. 

* Your friend or colleague is placed in the position of agreeing or refusing. The former will likely lead to cries of, "You did WHAT?!" from their partners, or serious discomfort to them if they turn you down, knowing they may have scuppered your chance to rent.
And, if one agrees, willingly or cynically, will it change your 'relationship' in any way? Will you end up feeling uncomfortable?

WIAWSNB

Could you pick up some freelance work, or a job on a temporary contract, perhaps working from home?
You are now an earner. And can resign whenever you want after you've moved in.

Section62

WIAWSNB said:

...

I am nigh on certain that other options are already available too, such as payment of a number of months in advance. This is standard stuff.
...

See the "Renters rights laws" part of the thread title.

The option of paying multiple months of rent in advance is to be outlawed... which narrows down the options for those who are cash rich but eligible income poor.

WIAWSNB

Well, I managed to post the Q on the 118 site, but cannot find it. Their Q&A section is impossible to navigate - for me, anyways.

I'm hopeful I can get to it when someone replies. If so, I'll pop it on here. 

silvercar

Landlordzone also has an active forum.

https://forums.landlordzone.co.uk/c/welcome-start-here

although the title may imply a bias, it’s open to tenants.

WIAWSNB

https://www.property118.com/rent-with-no-income-but-large-savings/

I guess it was too much to expect a straightforward answer...