New Tenant – something not quite right
I have a three bed house in Surrey with a new tenant moving in on the 28th.
She seems like a genuine person. Has just split with her husband, has two kids, house is very near the school. She is working part time and is relying on Tax Credits and the maintenance money from her ex to pay the rent.
She has also said she wants to pay six months’ rent in advance (never had that before).
But the credit reference has come back saying that she is medium risk and they have declined her.
Openrent has stated that next action should be to request a guarantor (which I thought I had to be honest). But am not sure.
The last tenant was a single mother relying on her ex partner to top up her money and although she struggled every month and was often late paying, she always did pay and was a lovely tenant. We’ve stayed friends actually.
I am not sure with this one though. There’s something telling me that she’s a much bigger risk. Her ex sounds like a pretty bad sort (infidelities, controlling) so money may be withdrawn, it’s very common. Also, why would she pay six months’ in advance? Do her rights as a tenant change after six months?
Any insights would be gratefully received. I am usually extremely flexible with prospective new tenants and have always trusted my instinct (only got burnt once and it wasn’t too bad) but I’m not sure with this one.
Pam
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Member Since June 2013 - Comments: 37
8:10 PM, 22nd February 2017, About 9 years ago
Reply to the comment left by “Dani Hicks” at “22/02/2017 – 18:12“:
Sorry for using an abbreviation Dani, RGI = Rental Guarantee Insurance – The company I use are Best Insurance in Brighton (0330 330 9465), Jamie can help you out if you are interested in understanding what it covers.
Member Since April 2015 - Comments: 14
6:56 AM, 23rd February 2017, About 9 years ago
This is a grey area and I always reject such offers. The tenancy agreement would have to be very carefully drafted; a premium lease could arise; there are deposit, notice and even tax implications. (Tax is payable in the tax year in which rent is due so, depending on how a t.a. is drafted, 6 months’ rent paid now, only a few weeks before the end of the tax year, could be deemed to be due this year and give rise to a larger tax bill than normal.) Apparently, sometimes when the 6 months is up, no further rent is paid, and there’s also the issue of where the lump sum came from – could it be money laundering?
Member Since April 2015 - Comments: 6
8:37 AM, 23rd February 2017, About 9 years ago
I insist on no children, no pets, non smokers and no benefits ,furthermore this is in a former mining village in County Durham.
Eventually I get the tenant I require and don’t have to wait too long.
Surely in Surrey you can manage that!
Member Since May 2015 - Comments: 2188 - Articles: 2
8:50 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “KEN WALTERS” at “23/02/2017 – 08:37“:
And no under 35’s even if employed for they could lose their job and be unable to pay the full rent. Yet another unforeseen consequence of government policy.
Member Since October 2013 - Comments: 1308 - Articles: 10
9:14 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “David Price” at “23/02/2017 – 08:50“:
Over 35s could also lose their jobs and be unable to pay the rent.
Member Since May 2015 - Comments: 2188 - Articles: 2
9:34 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “Robert Mellors” at “23/02/2017 – 09:14“:
Over 35’s get the full LHA rate and at least stand a chance of paying the full rent, under 35’s only get the lodging rate of around about half the LHA rate.
Member Since December 2016 - Comments: 85
9:46 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “KEN WALTERS” at “23/02/2017 – 08:37“:
You’d be surprised Ken. One of my Surrey house tenants was the worst I’ve ever had.
The neighbours got so desperate they started recording the tenants’ activities. It was horrendous. The shouting, screaming, abuse. They would both call me screaming and shouting about each other. When I began the process of evicting them I was accused of racism. The fact that I’d rented the house to them in the first place was obviously lost on them.
They left the place in a terrible mess and then I was getting threatening phone calls from the husband because I wouldn’t give them back the full deposit.
They’d been subletting to illegal immigrants and the neighbours told me of all kinds of comings and goings day and night. Probably selling drugs too.
Despite all signs to the contrary, they did leave at the end of the tenancy to be honest although I now realise they didn’t want to be flagged up to the authorities who have since been knocking on the door looking for them.
So, if your comment is based on a perception you have of life being easier in the south for housing providers (not landlords) then I can tell you stories that’ll make your hair curl!!!
But that was the worst I’ve had. All of my tenants, so far, have been a cracking bunch.
Member Since October 2013 - Comments: 1308 - Articles: 10
9:49 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “David Price” at “23/02/2017 – 09:34“:
Oh I see, your comments were just in relation to single people (presumably in one bedroom flats). The LHA restriction for under 35s does not apply to families, or even couples. If a family applies to be a tenant, and the employed person(s) is under 35, then if he/she loses their job then the LHA rate would be the same as for someone over 35, in which case there is no need to discriminate against those under 35 if they have children living with them (or are part of a stable couple).
Member Since May 2015 - Comments: 2188 - Articles: 2
9:52 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “Robert Mellors” at “23/02/2017 – 09:49“:
Point taken, all my properties are for single people and it the singles to whom I referred.
Member Since October 2013 - Comments: 1308 - Articles: 10
9:56 AM, 23rd February 2017, About 9 years ago
Reply to the comment left by “David Price” at “23/02/2017 – 09:52“:
Then I agree that generally, it is much safer to let to single people over 35 for those reasons. However, there are also exceptions to the LHA shared room rate restrictions, which mean that some people under 35 would get the same LHA as people over 35, so it is worth bearing these exceptions in mind when letting to single people.