letting agent offering guaranteed rent

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  • letting agent offering guaranteed rent

    Hi,
    I am a new landlord and am tempted by an agent offering guaranteed rent where they lease my property for 3 years and get tenants who are 'DSS Referrals'. The rental is satisfactory for my needs but I would like any other opinions you may have.
    Thanks
    Erica

  • #2
    Dont do it.
    Keep away from this.

    It is the arm of the councils homeless departments that need
    instant accomodation, andcould see change of tenants every
    month / week.
    Horror stories of mayhem tenants ( see target group below ) and
    flats trashed and small print say £ 250 only paid in damages.

    Target Group
    Alcohol/ drug problems
    Homeless families
    Single homeless
    Learning disabilities
    Mental health
    Offenders
    Physical or sensory disabilities
    Teenage parents
    Gypsies/ travellers
    People at risk of domestic violence
    Young people
    Older people
    HIV/ Aids

    Others may come here and confirm the above.

    Don't do it.

    R.a.M.

    Comment


    • #3
      Ask if guarantee is underwritten by a personal guarantee from one of the directors & is it OK to credit check that director (of the agency...).

      Methinks guarantee won't be worth the email it;s sent in...


      Cheers!
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


      • #4
        Me also thinks the small print needs careful reading to date I have never taken the view all facts considered the guarantee was worth it.

        It never fails to amaze me how many people rather than read the detail rely on the spin.

        Comment


        • #5
          Drove through Sale today & passed an agent advertising on his shop front "no risk" guaranteed rent. How trading standards let them get away with it I dunno.
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


          • #6
            thank you everyone!
            I will be cautious and read the small print. However I also wondered if there is a difference between agents who sublet to DSS referrals and those who claim they will house families (4 bed house). Would it be naive to assume a long term family is probably a safer bet?

            Comment


            • #7
              The right long term working family would always be my preferred option.

              For the avoidance of doubt you will only know they are right after all tenancy checks on tenant have been carried out.

              Comment


              • #8
                I've just had a member of the LA authority come to see whether my 3bed 3 reception house could be taken on as a 4 bed house by their agent. They said it could be so the rent will be more. I just wish there was some way of knowing that the agent will only let to long term families in need of housing by the LA.

                Comment


                • #9
                  Originally posted by erica-65 View Post
                  let to long term families in need of housing by the LA.
                  The question we all may ask you, is why you are in such a dire
                  possition, desparate, and hitting rock bottom that you are "tempted"
                  to consider the WORST possible type of letting.

                  You ONLY consider housing the people that no one wants to
                  house, if you are desparate.
                  Imagine the family from hell, being removed from the "estate"
                  due to totaly unaceptable behaviour. They all have asbos,
                  and have to be rehoused.
                  Oh look, heres a Ericas house, we can put them in there,
                  and we wont pay for any damage over £ 250.

                  Or a family of Gypsies/ travellers whose caravan burnt down,
                  then treat your property as a scrap yard .
                  The agents can only put people in your house that the council
                  put forward.

                  Members on here would probably like to know why ! you are
                  desparate, and want to put your house at risk.
                  There are many posts on here about the why you should never
                  let to the council who put "at risk" people in your house.

                  See post 2 for the official list of people that WILL be offered
                  to the letting agent.
                  You could be lucky with a family, but why take the risk.

                  if you are a FIRST time landlord, everyone will agree for you
                  to keep away from this council funded program.

                  R.a.M.

                  Comment


                  • #10
                    If you enter into a regular landlord/agent relationship then you have the final choice on the tenants - the agent simply works for you. So if you want a 'long term family' that's your choice.

                    Comment


                    • #11
                      I am not desperate - I just need my mortgage and costs covered with hopefully some left over as profit to enable me to move away for a few years so I can be near my elderly mother to look after her. But your comments are helping me to sort things out in my mind. My worry with a paid agent/landlord relationship originally. had been the void periods- as the rental market is very competitive.

                      Comment


                      • #12
                        Originally posted by Snorkerz View Post
                        If you enter into a regular landlord/agent relationship then you
                        have the final choice on the tenants - the agent simply works for you. .
                        Above is correct, but with the guaranteed rent program, you have
                        NO say in who gets put in your property, and you cannot get them
                        out, as, You let to the agent who then forms a contract with the
                        council, and it gets messy trying to get bad tenants out.
                        It's the Council that ultimately has the contract with the tenant, so
                        the landlord is out of the equation often.

                        I have also read that you have to give ALL your keys to the council
                        as they dont want you applying for repossetion and having keys,
                        when the contract is with Council and tenant, not Landord and tenant.

                        You have effectivly "given" agent and council FULL powers over
                        your house for 3 years. You have no say in who lives there.

                        Comment


                        • #13
                          Ok - I am seriously reconsidering, thanks to your advice.
                          I have just booked a private agent to come and see my property who then manage it for a fee.
                          Wish me luck!!!
                          I have looked at other posts about how to chose an agent and will be asking relevant questions as advised. I am so glad I found this website - you all have been great.
                          I will post a note to say how it went.

                          Comment


                          • #14
                            Originally posted by erica-65 View Post
                            My worry with a paid agent/landlord relationship originally
                            had been the void periods- as the rental market is very competitive.
                            EDIT, written before above post 13 came on screen

                            Thanks.
                            Yes there are void periods.
                            Same with the hire of similar priced construction equipment, hire
                            cars.
                            At the risk of offendng you more, you are running a business, and
                            costs of running that busines includes void periods, agents fees,
                            insurance etc, etc.

                            If you or anyone else thinks a business is not viable, then you
                            sell the house. Your comments seem to suggest that the house
                            letting is not a viable business model.

                            As a "Business woman", you have to make the decision to mitigate
                            your losses.
                            If a few void periods work out cheaper than having to do 3 total
                            refurbishments ( £ 30000 ) because you had tenants from hell who
                            trashed the place, then go for the voids.

                            If you are deteimined to carry on with the Council putting the
                            "Target group" in your house, then that is your decision, and we hope
                            all goes well, you come back in 3years and your house is fine.

                            Good Luck

                            R.a.M.
                            Last edited by ram; 22-02-2013, 12:09 PM. Reason: first line edit ( post 13 )

                            Comment


                            • #15
                              i am not offended at all - I admit to being a novice both in renting and generally business.
                              Please keep the advise coming!

                              Comment

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