Q for the good landlords of MSE

owitemisermusa

Need some advice from you big boys (and girls).

Property currently empty after the end of a tenancy. Just been told by LA that they've lined up a new tenant (professional) who's keen to sign a 12month tenancy but cannot move till August - ie 2 months void!

Rejected it out of hand but thinking now that maybe it's not such a bad idea. A guaranteed 12months sounds very appealing. A bird in the hand they say.....

What do you experienced folk think?

All advice gratefully received.

OMM.

Bungarm2001

If they passed all the credit checks, refs etc etc and it looked like no-one else was up for it, then I would have taken the void. 2 months isn't such a long time really in the grand scheme of things.

Something else to consider; in my experience, once a LA has found you a tenant, even if you reject them because they will cause a void by waiting for them, they aren't quite so motivated to find you another tenant.

Of course, someone could walk into the LA tomorrow who wants to move in right away, but do you take the gamble? You could just as easily wait another two months or more...

lil_me

I'm not a landlord but I would say it very much depends if they can sign the tenancy now (because they could back out before August then a void would be for nothing) and it depends where your property is. Rental market here is slow, there are properties which have been empty for at least 10 months (were empty when we were looking last year) so if the market is the same where you are and they can secure the tenant it might be worth it.

kimosaaby

How guaranteed is it? A good LE should be lining new tenants up when a property is coming to the end of it's prior agreement. Is it 'only' 2 months from vacant to occupied or really 3-4 months by the time the LE found this tenant? Consider talking to other LE's .. is that kind of void normal for your style of property?
Will the new tenants pay the 12 months in advance? Will they pay a holding fee? More questions than advice but I would be asking the LE why it has taken so long to get a new tenant ( assuming it is the same LE as your last tenants ).

Bungarm2001

We always ask for a holding fee in this situation for that very reason. We knock it off the first months rent, but we make it quite clear that it is non-refundable should they decide not to take up the tenancy after all. That at least weeds out the time wasters.

PROFESSIONAL_LANDLORD

Rejected it out of hand but thinking now that maybe it's not such a bad idea. A guaranteed 12months sounds very appealing. A bird in the hand they say.....

In life nothing is guaranteed, If the property is turned out well, and your area is reasonably strong, THANKS but no! if the property is poor, well?


2 weeks for me, or 3 at a push.

DawnW

I think it depends on the area, the property and how strong the rental market is. My property was only marketed for rental for just over a week, and we had 3 enquiries (accepted the third). Rental market here is strong and in any area, some types of properties don't come available as often as others (and so get taken up more quickly). The LA I use says that in this area, flats can be a bit slow, but family houses always go quickly in his experience. However, whether the OP wishes to wait for these prospective tenants will also depend on whether they look like a good bet as tenants - ie, good references etc. Lots of things to take into consideration I guess.

clutton_2

i never give a tenant 12 months initially - if they turn out to be the tenant from hell you are stuck with them for a loooooong time - after 6 months i will renew for 12 months if they have been ok.

ncooper1974

personally, I'd reject it.
how much are you renting it out for? if you're worried you might not get anyone else in those 2 months, then drop it by £10 or £15 a month - that should attract more interest.

I always market at 5% below market so that I undercut the competition. seems to work well for me. hardly get any voids (about 2 weeks in last 4 years)

Troubled_Joe

I'd echo the advice to only give 6 months to a new tenant regardless of the credit checks etc.

owitemisermusa

I'm looking at about £1400 in lost rent for the 2 month void. There are other properties on my street but they have gone so in direct competition with 1 other. I must admit that remaining property is undercutting me!

Will have to ring the LA again. I was told they had lots of interest only to be offered this one.

I think I'll try and have other agents market it for me.

OTOH, I'll ask about the holding deposit idea. I was told they are prepared to sign the tenancy agreement NOW!