I’m a landlord and a tenant

by Readers Question

8:37 AM, 14th June 2019
About a month ago

I’m a landlord and a tenant

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I’m a landlord and a tenant

I wanted to share my experience of being a landlord and a tenant.

I rented out my flat and a small 2 bed terrace and that has enabled me and my son to live in a house in an area I couldn’t afford to buy in. We were happy and then 6 months in to my 12 month contract the agent served a section 8 and said the landlord needs to live in the house as it’s their only UK residence.

I immediately started looking for another home, but I was gutted. The rents have gone up. I found a lovely house with a higher rent, but I worked out that my income could cover 30 x monthly rent. I paid a weeks rent holding deposit to the agent. I failed the affordability test.

They didn’t tell me the algorithm they use, but they estimate my expenses. The agent has not returned my deposit. Half my house is packed in boxes. I’ve got a month to find a house. But it’s not just a house, it’s a home we’re looking for. I feel it won’t feel like a home as I could be asked to leave at any time.

Although I think I’m a great landlord, this has been a learning curve. I feel vulnerable, my home life is fragile and I’m not in control, it’s a scary place.

Karina



Comments

Neil Patterson

8:42 AM, 14th June 2019
About a month ago

Hi Karina,

Thank you for sharing. I have seen what you are going through first hand and is a good example of why we need more supply of homes rather than constant attacks on landlords. There are a good few Landlords such as yourself who are also tenants including our own Mark Alexander.

On a practical note please quote the Tenant Fees Act to the agent and you will get your holding deposit back straight away.

Mark Alexander

11:29 AM, 14th June 2019
About a month ago

There is also a very easy way to test whether your future landlord really does intend to stay in the PRS long term.

When you find the ideal property, make it clear that you are looking for a long term commitment, subject to you observing the provisions of the tenancy agreement of course.

If the landlord seems OK with this, but can only offer a six or 12 month tenancy agreement, ask for a Deed if Assurance.

If you or the landlord don’t know what that it, look it up on Google.

I offer these to my tenants and my own landlord has provided one to me.

Karina Johnson

19:13 PM, 14th June 2019
About a month ago

Reply to the comment left by Neil Patterson at 14/06/2019 - 08:42
Hi Neil, I know about the tenant fee ban but is a holding deposit a different thing? Can I still get it back if I failed the uktenantdata affordability test?

Karina Johnson

19:18 PM, 14th June 2019
About a month ago

Reply to the comment left by Mark Alexander at 14/06/2019 - 11:29
Hi Mark, I'd never heard of a deed of assurance so that's good to know. Its good idea because when you have children in school you want to know you can settle long term. Estate agents have never mentioned it

Mark Alexander

19:23 PM, 14th June 2019
About a month ago

Reply to the comment left by Karina Johnson at 14/06/2019 - 19:18
Very few Agents promoted the Deed of Assurance concept before the tenants fee ban, perhaps because it meant they couldn't easily charge renewal fees? However, I am hopeful that might change now that the tenant fees ban is in place.

Neil Patterson

22:25 PM, 14th June 2019
About a month ago

Yes absolutely they cannot keep you holding deposit.

ameliahartman

23:18 PM, 14th June 2019
About a month ago

Obfuscated Data

Rob Crawford

16:32 PM, 15th June 2019
About a month ago

Some insurers and mortgagee providers require an AST to be in place. Of course they may still accept a deed of assurance if asked. A understand a deed of assurance can be linked to an AST but can also come in other guises. Worth checking.

Mark Alexander

17:41 PM, 15th June 2019
About a month ago

Reply to the comment left by Rob Crawford at 15/06/2019 - 16:32
A Deed if Assurance is a separate agreement completely to an AST and has nothing whatsoever to do with lending.

An AST is granted as always. Think of a Deed if Assurance and a legally documented set of promises which would normally be verbal

Arnie Newington

11:26 AM, 16th June 2019
About a month ago

Interestingly it was very common during the financial crisis for people to be a landlord and tenant and the flexibility of the PRS saved a lot of people from going bankrupt.
The reason for this was because no one was buying so people who needed to move for say a change of job or a relationship breakdown were left with the choice of a fire sale or renting their property out and also becoming tenants elsewhere.
I think that if the proposed legislation goes through to make renting more secure then people will be unwilling to rent their house out as they may not be able to get it back.


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