Referencing EU nationals recently arrived from abroad offering 6 months rent up front

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    Referencing EU nationals recently arrived from abroad offering 6 months rent up front

    Apparently nice and sensible couple - mid 20s. German and French but have been living in Australia for three years. Very recently arrived here. Both project managers but only just started applying for jobs. They are offering to stump up 6 months rent plus deposit in advance. He has shown me a balance statement from his German savings (almost 50K) and a reference from the bank addressed to me confirming his balance and good account management but no other info. Passports but pretty much no other referencing. No appropriate guarantor in UK.

    They seem very sensible and I'm tempted to choose them over a couple of city boys who tick all the referencing boxes as gut feeling is that those particular two guys could be a bit obnoxious and lairy (I manage the other flats in the block and have had problems with lad shares before - and the couple downstairs have a young child). The couple fit the demographic in the building which is mostly foreign national professionals but who were all largely more established here when they moved in.

    I've never taken 6 months up front always preferring to use guarantors when a referencing problem arises. Contract would make clear it is monthly payment period with a payment of six periods in advance.

    Thoughts?
    Assume I know nothing.

    #2
    I would take the foreign couple.

    Make clear that you will be sending a s21 notice at the 4 month point together with a standing order form for rent from month 7 onwards. If month 7 rent is absent, you just apply for a possession order.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      Go with your gut feeling. I would take them.

      Comment


        #4
        Thanks both. That's reassuring. To be honest I was expecting more caution from the boards!

        Originally posted by JK0 View Post

        Make clear that you will be sending a s21 notice at the 4 month point together with a standing order form for rent from month 7 onwards. If month 7 rent is absent, you just apply for a possession order.
        My knowledge of s21 is pretty ropy, so how does this work? Presumably this is based on a six month fixed term, the notice would require possession at the expiry of the 6 months and if rent is received on time it creates a new periodic tenancy and the s21 expires?

        My contracts are normally 12 month fixed term with a break clause at six months. I don't suppose it can work with that because the s21 would end the tenancy at six months? And if they pay and stay it then becomes a periodic?
        Assume I know nothing.

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          #5
          Break clauses are full of pooh-traps. Don't use them. Just 6 month terms, then let it go periodic.
          To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

          Comment


            #6
            Originally posted by JK0 View Post
            Break clauses are full of pooh-traps. Don't use them. Just 6 month terms, then let it go periodic.
            What are the main issues with break clauses? (Other than in the context of this thread). Do you know of a good thread on that topic?
            Assume I know nothing.

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              #7
              This company advertise on landlordzone and carry out tenant checks in Australia;

              https://www.tenantverify.co.uk/inter...it-checks.html

              I'd also give the previous landlord a phone call.

              Comment


                #8
                That looks like a useful link, ta.
                Assume I know nothing.

                Comment


                  #9
                  Originally posted by Hooper View Post

                  What are the main issues with break clauses?
                  That a judge will rule that the clause itself or any notice you give under it to be invalid, and you have another 6 months to wait.
                  To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                  Comment


                    #10
                    Originally posted by JK0 View Post

                    That a judge will rule that the clause itself or any notice you give under it to be invalid, and you have another 6 months to wait.
                    Is that assuming that it is found to be badly worded or deemed unfair? Or just break clauses in general?
                    Assume I know nothing.

                    Comment


                      #11
                      Originally posted by Hooper View Post

                      Is that assuming that it is found to be badly worded or deemed unfair? Or just break clauses in general?
                      All the above.
                      To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                      Comment


                        #12
                        It's proven difficult to find a well worded break clause.
                        Which is possibly because a well worded break clause wouldn't bring someone to a forum like this looking for advice, so we don't see the good ones.

                        From a landlord's point of view break clauses are tricky even if they work.
                        You serve notice in line with a break clause, unless the tenant moves out, a periodic tenancy then commences and you have to serve notice under s8 or s21 anyway.

                        6 month tenancy only, then periodic.
                        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).

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                          #13
                          Originally posted by JK0 View Post
                          I would take the foreign couple.

                          Make clear that you will be sending a s21 notice at the 4 month point together with a standing order form for rent from month 7 onwards. If month 7 rent is absent, you just apply for a possession order.
                          We have proceeded on this basis, thanks. When should I serve and what date should I use on the s21? Contract runs 1 October to 31 March. Payment due 1st of month.
                          Assume I know nothing.

                          Comment


                            #14
                            Yes, all these "expats" (British who moved abroad ...) now wanting to get back..

                            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


                              #15
                              Originally posted by Hooper View Post

                              We have proceeded on this basis, thanks. When should I serve and what date should I use on the s21? Contract runs 1 October to 31 March. Payment due 1st of month.
                              Date & send s21 on 2nd Feb IIWY. When calculating the notice period, give them a few days for the post to arrive plus any weekends. I always send a friendly letter with it explaining that you are happy for them to stay on if rent is forthcoming monthly from April onwards.

                              It used to be said that such a letter countermanded the s21. I believe this was a possibility when you used your own wording for them. I take the view that now the wording is prescribed, there is no way anyone could argue that to be the case.
                              To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                              Comment

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