would you accept these tenants with a void of nearly 5 months

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    would you accept these tenants with a void of nearly 5 months

    Hi everyone, just looking for a bit of advice as everyone has been so helpful in the past. One of my 5 bed properties that used to be a family home is currently vacant for 5 months at the end of Aug. Its in the middle of nowhere and has always been difficult to rent out although a tenant family of 2 years has just left. Ive had little interest, have dropped rent, nothing going until the other day when i had interest from a couple. He has excellant credit score and salary of around £42k plus bonuses however her credit rating is only 405. Couple have recently met and she is pregnant, they told me they want to live together. He is 47 and she is 43 so not very young. There is a plethora of children moving in including a 20 year old son who is a student who has also failed referencing that i expected. Her income is around £24k but obviously this will drop with maternity. She rents currently, he owns a 2 bed house that he plans to rent out.

    I am torn whether to rent to this couple. They seem genuine and are obviously mature. They want to combine their family and it is half way between both sets of childrens schools. However she has a poor credit rating and debt. There is no chance of her getting a guarantor with the rent requirement for a 5 bed house. If i refuse them will i have another 5 month void, is his credit rating and salary enough or should my business head say no. I cannot get more than a 5 week deposit with the new laws and both say they cannot pay more than a month rent upfront due to moving costs and saving for a baby.

    What would other landlords do in this situation?

    #2
    6 months up front or goodbye.

    Comment


      #3
      Not enough cash flow to pay 6 months of rent = high risk (regardless of whether you would actually take 6 months).

      Comment


        #4
        BTW, if they are saving for a 'baby', which precludes paying six month's rent, what were they planning on paying the rent with?

        I'd suggest they pay the 6 months rent out of their savings, and then recoup the savings by saving what they would be using for rent. Babies take 9 months to appear, last time I checked.

        Comment


          #5
          We should reiterate again that the only reason these folk are high-risk (and will have difficulty finding a property to let) is as a result of legislation. In a normal world where you could easily and efficiently evict tenants who did not fulfil their side of the contract, they would not be high-risk at all.

          Comment


            #6
            Never rent to anyone you have doubts about, regardless of the void.
            Thought about an HMO?
            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


              #7
              From what you said I think these prospective tenants are worth a go . I would take a 5 week deposit and monitor the rent payments carefully. Most people will pay their rent from their monthly salary so you could make sure the rent is due on salary day or next day and make immediate contact if rent is late.
              If you are having no takers for your house you know you will have to take a risk with it at some time which may not pay off - improvement, HMO or split into flats etc. If the 'right 'tenant doesn't come along you will eventually be forced to sell which also may take some time.

              Comment


                #8
                If these tenants go in and struggle to pay the rent, then you end up with a bigger bill of trying to evict them and possible trying to put the property right, if they have left in a bad condition.

                There is a risk, in that they have not lived together before as a family. So they could split up. Does he have kids too? Or are they all her children?

                Lets say, he leaves, does the local LHA rate cover the rent?

                Why does she have a low credit history? Does she have a lot of credit card debt? Would he try to bail her out?

                On the positive, he has assets, he has a house. Do you know how much equity is in there, if so that could be your security, if thing go wrong.

                You could get rental insurance, so if they don't pay ,then you insurance company will take care of it. They could need to pass the credit checks.




                Comment


                  #9
                  I would probably take the risk if it's that hard to let, but only give a 6 month fixed term then periodic. I would also do a lot more digging first. References, social media, bank statements...

                  Comment


                    #10
                    Originally posted by DPT57 View Post
                    I would probably take the risk if it's that hard to let, but only give a 6 month fixed term then periodic. I would also do a lot more digging first. References, social media, bank statements...
                    and evidence that they don't have ccjs.

                    Comment

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