You take the risk and I will take the tenant!

You take the risk and I will take the tenant!

11:22 AM, 30th October 2020, About 11 months ago 42

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I am constantly being approached by various Local Authorities to house single homeless people, something I am only too willing to do with certain conditions.

In summary, my reply demands a guarantor, for both rent and damage without limit, using the catchphrase “You take the risk and I will take the tenant.”

Nobody has taken me up on my offer.

Can I suggest that we all use this approach to Local Authorities trying to place homeless people then perhaps the message will get through.

David



Comments

by David Price

9:18 AM, 1st November 2020, About 11 months ago

Reply to the comment left by TrevL at 31/10/2020 - 16:39
If the public sector can not afford to take the risk then it must find an alternative way of housing it's clients.

by TrevL

9:27 AM, 1st November 2020, About 11 months ago

Reply to the comment left by Old Mrs Landlord at 31/10/2020 - 23:31
I agree the eviction issue is a mess, my comment was more focussed on if a LL was discussing on taking on a new tenant..... don't bother, it's not worth the risk..... i.e. keep property empty if you wish, but otherwise sell.

As for those with non-paying sitting tenents, my commiserations, no easy answer, but once they are evicted, the decision to sell must be attractive based on the risks faced.

by TrevL

9:52 AM, 1st November 2020, About 11 months ago

Reply to the comment left by Chris @ Possession Friend at 31/10/2020 - 17:02
It would be nice to think that us landlords can dictate how much risk we take on and conversely what rent we charge, but it's hubris to think that's how it will work out.

Yes, the UK has strong property rights, but the government get to change the law at will, which they did with the eviction ban. Expect some ill thought out draconian changes to come.... seriously, rent caps anyone? Compulsory purchase maybe. Commercial landlords have felt the full effect of market forces, PRS have and will feel the tyrannical hand of government.

by David Price

10:12 AM, 1st November 2020, About 11 months ago

Reply to the comment left by TrevL at 01/11/2020 - 09:52The more the government interfere with the PRS the harder it will be for Local Government to fulfil their obligation to house Benefit Tenants. Government interference with private industry rarely works, it usually causes chaos leading to remedial legislation - pills to fix the side effects of the original medication.
I often ponder as to what the government is going to do next in its continuing effort to destroy the PRS service that it desperately needs. There must be a whole department of Civil Servants dreaming up new punitive measures with 'proportionate' fines for non compliance. 🙁

by DSR

12:58 PM, 1st November 2020, About 11 months ago

Reply to the comment left by Chris @ Possession Friend at 31/10/2020 - 10:15
exactly my point - if this 5 weeks only limit were scrapped completely for Benefit tenants but then based on some sort of formulae if the total property were trashed, this would be more reflective.

by David Price

13:30 PM, 1st November 2020, About 11 months ago

Reply to the comment left by WP at 01/11/2020 - 12:58
Would be nice but I have yet to meet a Benefit tenant who had more than pennies to his name. Another entity paying the deposit on behalf of the tenant does not give the tenant a financial interest in behaving and not causing damage. Sadly the whole Social Security concept is fatally flawed, people must learn to provide for themselves using Social Security only as a short term solution in time of strife.

by Dutch_Kim

9:47 AM, 2nd November 2020, About 11 months ago

Reply to the comment left by Chris @ Possession Friend at 31/10/2020 - 15:12
Hi Chris, the rent was covered by the RentGuarantor agreement, the 10k was a malicious damage cover, my rents were fully paid by them (rent was £1400pcm). I didn't have to pay for the insurance, it was covered by the ingoing tenant. Now I get all my tenants to take them on as their guarantor.

by Ian Narbeth

10:13 AM, 2nd November 2020, About 11 months ago

Reply to the comment left by Dutch_Kim at 02/11/2020 - 09:47
"Now I get all my tenants to take them on as their guarantor." Be careful you don't fall foul of the Tenant Fees Act 2019. You cannot require the tenant to enter into or pay for the insurance contract.

by Chris @ Possession Friend

10:45 AM, 2nd November 2020, About 11 months ago

Reply to the comment left by Ian Narbeth at 02/11/2020 - 10:13Quite right Ian,
The TFB, as a lot of legislation has areas of ambiguity and in regard to this issue of guarantor, my interpretation of it stands that if a landlord merely insists of a suitable guarantor - of which there are many potential zero cost options, but the tenant decides of their own volition to undertake the paid option, likely because they can access other guarantors, i.e Council, Shelter Gen rent etc ( without prompt or requirement by the landlord ) then the TFB is not breached. -

by Ian Narbeth

10:52 AM, 2nd November 2020, About 11 months ago

Reply to the comment left by Chris @ Possession Friend at 02/11/2020 - 10:45
Yes, but the landlord needs to carefully document that entry into the insurance is not required. Otherwise, if the tenant raises a credible argument that "I was told that if I didn't take out/pay for the insurance, I wouldn't get the property" the judge may throw out a s21 application and the Council or a tenant charity may threaten the landlord with a £5000/£30,000 fine for breach f the Act until he can prove his innocence.


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