Prospective tenant

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    Prospective tenant

    Good evening

    I have a tenant moving out and the lettings agent has found a new one to go in.

    I'm uncomfortable with the new tenants situation and would like a second opinoin.

    The tenants situation is as below. The monthly rental is £1300 pcm and is a 3 bed semi

    40 years old and just divorced.

    one son is 17 and mainly lives with the father. She has a daughter who is 18 and goes to university this year.

    she apparently received £200,000 in cash from the divorce settlement. I've not seen proof of this.

    She earns 11k a year and currently receives £500 a month in maintenance for the children. I presume this won't go on forever

    She has a credit rating of 6 out of 10. She is the only one paying the rent

    upon moving in she wants to pay one year up front.

    I was told she ran her own cleaning business by the letting agent but when I met her she basically works alone with

    What concerns me here is the proposed abolishment of section 21.


    To the more experienced of you what do you think.

    Thanks in advance




    #2
    I think you have answered your own question. In a proper free rental market you might wish to take a punt on them. But this is not that market.

    Comment


      #3
      I would not be happy with this scenario.. Tell the agent you want to let to persons in provable, regular employment and if he can't sort that change agents.



      Freedom at the point of zero............

      Comment


        #4
        The main difficulty here is that although she can (probably) easily pay, you are not (easily) allowed to accept that payment (for example a year of rent upfront) without causing yourself a large headache. I feel really sorry for tenants who find themselves in this sort of predicament, but we know who to blame.

        Comment


          #5
          Somehow I don't think Gordon believes the blame lies with those agents and landlords taking advantage of their monopoly position to extract large amounts of money from tenants, at the start of the tenancy.

          Also, section 21 was never intended as an easy way of dealing with non-payment. s8g8 provides for that.

          Comment


            #6
            I can see the temptation but i would agree with the other comments, go for the standard full employment with a decent yearly salary.

            Comment


              #7
              The rent alone is pretty much the tenant's entire income plus the maintenance (which is due to end soon).
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Hi

                Many thanks for the replies.

                To add a little colour.....

                I called my letting agent this morning to inform them that I am not happy to accept this tenant.

                Due to the time (I called early) the lady dealing with the case was not in the office.

                However, the person I actually spoke to was a partner of the company, she reviewed the file.

                My concern was what would happen after 12 months- would the tenant pay up front for another year.

                The reply I received was that was unlikely but at 10 months we would perform an affordability test which as it stands today she would fail.

                My thinking - why would I accept a tenant that would either definitely leave in one year ( re letting costs) or give me a massive headache and not leave. (Section 21changes?)

                Obviously I refused the tenant.

                Roll on this evening I get a phone call from the lady dealing with the case originally. She advises me that she has spoken to the prospective tenant and can I reconsider as she is REALLY upset?

                What do you guys think of the response I received from the letting agent.

                To my mind I pay them to market the property, check references, find someone who can afford to pay the rent.

                Services well worth the money....

                However the response from the agent has me wondering why I'm paying my fee? Are they acting on my behalf?

                I know they want there commission but what do you guys think of this.

                I've used these guys for 5 years and actually pay more than other local agents offer.

                Thanks in advance

                Comment


                  #9
                  They do not sound as if they have YOUR best interests at heart, ok so the prospective tenant is upset...... and..... life is full of upset's, what the agent has not done is take into account your legitimate concerns and then answered them, they do not sound very good.

                  Comment


                    #10
                    if she receives 200,000 from the divorce settlement that means that she can buy her own house with the money -
                    if its sitting in her bank she will not be entitled to universal credit or benefits bt will be able to get tax credit (if needed)
                    i doudbt that the ex is paying 500 a month (mine pays 230 pounds and ive two children at school)
                    the income of 11,000 for a cleaning compnay is feesable - she probably employs one or two people and they clean houses ect

                    i think the tenant is exaggerating with the divorce settlement unless she was married to a pop star

                    Comment


                      #11
                      Originally posted by alice123 View Post
                      i think the tenant is exaggerating with the divorce settlement unless she was married to a pop star
                      Lots of people earn enough over 20 years to have £400k of assets.

                      Comment


                        #12
                        It doesn't really matter how much the maintenance is.
                        One child is off to university and the other doesn't live with the mother.
                        Neither is entitled to maintenance (or about not to be),

                        £11000 per annum is less than the rent.
                        I can't see how that could possibly pass an affordability test
                        Which would probably upset me too.

                        Perhaps the agent could explain why they'd fail the test in 10 months but not now?

                        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                        Comment


                          #13
                          One regular poster is continually pointing out that the rental market covers people who need to move frequently as well as those who can't afford to buy. As such an affordability check that doesn't take account of capital doesn't seem a good idea.

                          (Also, for those in older age groups, modern draw down pensions mean that people may have a large sum invested, but a small, or no, annuity.)

                          Comment


                            #14
                            this lady sounds exactly like myslef - but i dont have the 200,000 maintenance

                            I wish i had -

                            I pay rent on time always and im not in debt

                            im not sure where the people are who have all these assets maybe this in London

                            my incomes around 8,000 one child 16 one child 18, 230 pound maintenance each month and i do ok - and one property which i let out

                            Comment


                              #15
                              Inform your LA that you MAY re consider your offer (no advance rent), if propect provides last 3 months bank statements and accepts an increase of rent of £5 pcm.
                              I doubt s21 will be abolished this year, but who knows(?).

                              Comment

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