Find it hard to rent on a fixed term contract

combeferret · 6 February 2020 at 3:35PM

Hello!

First time posting on this board but I assume this is the right place. My boyfriend and I are at the stage where we are looking for a new place to move into (we are currently living with my family), however we are facing difficulties for several reasons;

both of our work contracts end in June
we do not have anyone that would be able to be a guarantor due to their low income (we are both from small working class families)
we don't have 6 months rent saved up that we could pay in lieu of a guarantor (we have been paying off debt recently and didn't expect to be moving so soon)

We have had a few letting agencies say that we look "great on paper" but obviously the normal solutions to a fixed work contract seem to not be an option for us. What can we do? Are we stuck unable to rent somewhere until we find new jobs nearer the summer? Or do we just keep trying lots of places until we find one that'll "take a chance" as it were, of course realising that the closer it gets to the work contracts ending the more unlikely that will be.

We live in Edinburgh so rents are extortionate, so going for somewhere cheaper isn't really an option unless we moved out of the city. (Of course I'm sure I'll have people wondering why we're moving when we don't know what our financial situations will be at the end of the year, but we can't just live "nowhere.")

Moneyminded · 7 February 2020 at 3:01PM

Is there a NEED to move? If you are currently living with family it makes sense to continue to do so until you have confirmation of what will be happening with your contracts in 4 months time. It seems unlikely anyone would be 'willing to take a chance' when it comes to you being able to pay the rent.

combeferret · 7 February 2020 at 3:42PM

I posted about it before on the forum, but basically my boyfriend moved in with me into my godmother's two bedroom flat when he was made homeless, so we are sharing one tiny room in a situation that was meant to be temporary until we got back on our feet. We aren't going to be kicked out or anything, but two adults sharing a small spare bedroom with family isn't ideal, and my godmother is keen to apply for a council house eventually so that she doesn't need to deal with the stairs anymore.

I'm relatively happy to stick it out until we're in a more comfortable situation, but then (what with being on new job contracts) that doesn't guarantee it'll be a lot easier, and before we know it we're still there in a year's time having the same conversation. That's my worry.

Retired_Mortgage_Adviser · 7 February 2020 at 4:00PM

It's a difficult situation to be in and as you have seen you are unlikely to have luck with letting agents. You may have better luck with self-managing landlords on websites like OpenRent though in areas with high rental demand, there is less likelihood of landlords showing flexibility.

theartfullodger · 7 February 2020 at 4:13PM

Does the now-ruling Scottish PRT tenancy not help you, with there being no initial fixed term (used to be at least 6 months..) and you the tenants able to give notice after only 28 days then leave?

Anyway, best wishes and ...

Slàinte mhath!

MovingForwards · 7 February 2020 at 6:07PM

Find a landlord who manages the property themselves.

I often see flats up on the Edinburgh and Lothians Facebook group.

Agents do stick by the book and you will struggle with both of you being on FTC.

The other option you have is moving out to west Lothian / Fife and commuting in.

Rental prices are daft here and are not getting any better due to people seeing the big money by doing Airbnb.

combeferret · 7 February 2020 at 6:08PM

theartfullodger said:

Does the now-ruling Scottish PRT tenancy not help you, with there being no initial fixed term (used to be at least 6 months..) and you the tenants able to give notice after only 28 days then leave?

Anyway, best wishes and ...

Slàinte mhath!

In theory, but... there would be no guarantee with the landlords when we would actually leave.

AdrianC · 7 February 2020 at 9:01PM

combeferret said:

both of our work contracts end in June

we do not have anyone that would be able to be a guarantor due to their low income (we are both from small working class families)

we don't have 6 months rent saved up that we could pay in lieu of a guarantor (we have been paying off debt recently and didn't expect to be moving so soon)

Look at your position from the putative landlord's point of view.

In four months time, you could both be out of work. You have no savings cushion, and you have no family members to help you with a cushion.

If the boot was on the other foot, would YOU rent to somebody in that position...?

combeferret · 7 February 2020 at 9:15PM

@AdrianC oh ABSOLUTELY not! As I've always lived at home, the rental market is something I'm severely lacking knowledge in, but it's became abundantly clear that there's not a chance anyone will take us on as new renters in our current situation. It's just a bit rubbish because it means we need to stick out where we are for a few more months, it seems...

theartfullodger · 7 February 2020 at 9:46PM

combeferret said:

In theory, but... there would be no guarantee with the landlords when we would actually leave.

Well, yes, but that's the whole point of a PRT: The tenant can stay as long as they like unless there is serious breach of tenancy (eg not paying rent for 3 months..) of place being sold/moving back in. Applies to you, someone with £3million in the bank, someone with a permanent high-paying job.

If the "I'm selling/moving back in" turns out not to be true tenant can be awarded 6 months rent...

See

https://scotland.shelter.org.uk/get_advice/advice_topics/renting_rights/renting_from_a_private_landlord/the_private_residential_tenancy

If you need independent advice 'phone Shelter Scotland 0808 800 4444

Artful: Scottish landlord since 2000

AdrianC · 7 February 2020 at 10:40PM

combeferret said:

@AdrianC oh ABSOLUTELY not! As I've always lived at home, the rental market is something I'm severely lacking knowledge in, but it's became abundantly clear that there's not a chance anyone will take us on as new renters in our current situation. It's just a bit rubbish because it means we need to stick out where we are for a few more months, it seems...

Yup.

Get secure employment. Get some savings cushion behind you. THEN you can start to spend...

Your accommodation choices are the least of it. Remember, when you take on a tenancy, you're taking on an open-ended long-term contract for thousands and thousands of pounds.

12mo fixed-term tenancy for £750/mo? That's an absolute bare minimum of nine grand you have just contractually obliged yourselves to pay. In return for which, you're being handed <wet finger> a hundred and fifty grand's-worth of somebody else's asset. They may owe somebody else a hundred grand secured against it. They may easily be paying 40% of your contracted payments straight back out in interest on that loan... Before all their other outgoings for running that business - and, of course, their tax liability.

Find it hard to rent on a fixed term contract

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