Advice on potential tenants...

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Advice on potential tenants...

    Hi,

    hope you all can give some advice to a newbie landlord.

    My brother and I put our parents house on the market for rental at £850. 3 bed semi, new carpets throughout, newly decorated, kitchen, diner, driveway.

    We've had it on with an agent for about 3 weeks and have had 4-8 viewings (according to the agent), we've just had an offer at £750 from a couple with young daughter.

    That's £100 less than we want, but they've ALSO offered to a) overhaul the garden (it's ok as is, but I guess it'd be nice to have it looking good), b) fence off part of the driveway, and c) redecorate inside. The last one striked me as a bit odd because we've already redecorated (they will be the first people in the property since), but the agent seems to think these guys might have an even higher standard than we do.

    So I'm wondering how to proceed. In theory my brother and I will accept £750 at a push, though they would HAVE to do everything they have promised. But what do you guys think? Perhaps we should have a deadline to complete the renovations by (otherwise it might be a false promise)?

    Any advice? Should we walk away? We're in no rush the rent the property, but we could be making money instead of it standing empty. Also, it's our childhood home so we'd like to find some tenants who are going to treat it right, and these guys may be that. Or, could the tenants/agent be taking advantage of some newbie landlords?

    Hope you can help, thanks, Simon.

    #2
    i wouldnt accept, tenants DIY can be good, but can also be bad... They spill paint on new carpets, garden isnt done in a way you want it, they slab it all etc, too many variables for my liking..

    Comment


      #3
      Don't trust what an agent says. Your instinct is ringing alarm bells and so it should. I used to be a tenant supervisor and worked closely with agents. It's not their property at the end of the day, it is yours.

      Ask the agent if there have been any other offers from the other 4-8 viewers? What was the feedback etc.

      Make sure that you are happy with the references, proof of income, employers reference, credit reference check, etc. Hire the services of an accountant to look over it for a second opinion as it is alot of money.

      If all is happy, make sure the clause is added to the contract. Yes a timescale is a good idea.

      I can imagine that they would like to make it their personal home and proberbly put some feature wall paper up as that is the fashion at the moment.

      Comment


        #4
        Originally posted by Holmes1981 View Post
        i wouldnt accept, tenants DIY can be good, but can also be bad... They spill paint on new carpets, garden isnt done in a way you want it, they slab it all etc, too many variables for my liking..
        Depends on the quality of tenant.

        You could place a clause in the contract that the work carried out needs to be of a high standard and an inspection will be carried out once the work is complete.

        You could also insist on a higher deposit to make sure that they do right.

        Comment


          #5
          OR demand as a pre-condition that T engages a professional and independent contractor:
          a. whom you can check; and
          b. who will enter into a contract direct with you but at T's expense (so that you can enforce direct).
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            Good idea concerning the increased deposit, I was going to make sure the decorating is done in accordance to our tastes as well as theirs, though the agent said they'd be decorating using neautral colours (we magnolia'd the place already, so go figure...), and also do some inspections.

            Some alarm bells are ringing though and I didn't particularly want the hassle considering we are newbie landlords and they will be our first tenants. But I can understand them wanting to make it their 'home', and I think they will be good tenants...

            Comment


              #7
              Originally posted by lombrozo View Post
              (we magnolia'd the place already, so go figure...),

              Some alarm bells are ringing though and I didn't particularly want the hassle considering we are newbie landlords and they will be our first tenants. But I can understand them wanting to make it their 'home', and I think they will be good tenants...
              Magnolia is a tasteful tenants turnoff. All LL use it because it is cheap. It is a generic vomit of a colour. Sorry Eggshell white, yes. Some baige tones yes. Magnolia yugh!!! Visitors can tell it is rented when they see the colour Magnolia.

              Regarding the alarm bells - my advice is trust your instinct. It served me well finding good tenants. You could always get a third party opinion on the credit check and references. May cost you £100 but will be worth it.

              Comment


                #8
                Try not to let the fact that it was your childhood home cloud your judgement. Although still your property, it will be their home , not yours. Which tenants you choose should be a purely business decision. If you have a choice, go for the ones who are best able to afford the higher rent and do not allow any DIY decorating. They can personalise it in other ways withou having to slap paint around and it will end in tears unles you do as Jeffrey advises. I agree magnolia represents a failure of imagination, but some tenants' imaginations are not to be encouraged.
                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                Comment


                  #9
                  Was this a first offer? It may be worth going back and saying that you are not prepared to accept £750 but may accept £800 (for example)?

                  Comment


                    #10
                    Originally posted by Jaybee542 View Post
                    Was this a first offer? It may be worth going back and saying that you are not prepared to accept £750 but may accept £800 (for example)?
                    I spoke to the agent about this but he said they wouldn't budge, though we are trying £775.

                    Comment


                      #11
                      Originally posted by lombrozo View Post
                      I spoke to the agent about this but he said they wouldn't budge, though we are trying £775.
                      How confident are you/is the agent that there will be others interested?
                      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                      Comment


                        #12
                        Originally posted by mind the gap View Post
                        How confident are you/is the agent that there will be others interested?
                        Well if I listen to the agent then we should take this, but he also said the house would be snapped up when we first went with him, standard agent speak I guess. As far as I can tell, and comparing it with other places in the area, ours is a good deal, and we've already come down from 895 to 850.

                        As I said we're in no great hurry, though it does seem a waste of money leaving it to sit empty.

                        We've only tried with one agent so far, so might be time to try others?

                        Comment


                          #13
                          Originally posted by lombrozo View Post
                          Well if I listen to the agent then we should take this, but he also said the house would be snapped up when we first went with him, standard agent speak I guess. As far as I can tell, and comparing it with other places in the area, ours is a good deal, and we've already come down from 895 to 850.

                          As I said we're in no great hurry, though it does seem a waste of money leaving it to sit empty.

                          We've only tried with one agent so far, so might be time to try others?
                          Definitely, as long as they don't all plan to relieve you of a few hundred quid just for the privilege of walking through their door and sitting on one of their leather settees for long enough to write a cheque out for their 'registration' fee.

                          In fact, you could stir them all up a bit by telling them that the first one to find you a suitable tenant gets the management contract, too.
                          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                          Comment


                            #14
                            Originally posted by lombrozo View Post
                            We've had it on with an agent for about 3 weeks and have had 4-8 viewings (according to the agent), we've just had an offer at £750 from a couple with young daughter.

                            That's £100 less than we want, but they've ALSO offered to a) overhaul the garden (it's ok as is, but I guess it'd be nice to have it looking good), b) fence off part of the driveway, and c) redecorate inside. The last one striked me as a bit odd because we've already redecorated (they will be the first people in the property since), but the agent seems to think these guys might have an even higher standard than we do.

                            So I'm wondering how to proceed. In theory my brother and I will accept £750 at a push, though they would HAVE to do everything they have promised.
                            Beware of tenants offering to carry out 'improvements'. People's standards vary wildly and what's considered an improvement by the tenant, could in fact actually reduce the value of the property.

                            I would advise you to refuse the offer of improvements and make your decision solely on the basis of the tenant's references, ability to pay the rent, and whether you are willing to accept their offer based on purely financial considerations such as - is it a fair rent for the property, does it cover the mortgage, etc.

                            I have just accepted an offer which is £15 per week less than the current tenant is paying, and I did so because, firstly, the prospective T wants to move in immediately after the current T vacates (so I don't lose any money with a void - and a one month void is equivalent to losing approx. £30 a week in a 12 month period), secondly, because the prospective T has a secure job on a high salary, good employment history, good references, no CCJs, etc.

                            I turned down a similar offer a month ago, from someone wanting to move in quickly too, because the prospective T was self-employed, and could provide no evidence to support his claimed income level, even though he passed a credit reference check and agent was keen for me to accept - "lovely charming man" etc.

                            Any advice? Should we walk away? We're in no rush the rent the property, but we could be making money instead of it standing empty. Also, it's our childhood home so we'd like to find some tenants who are going to treat it right, and these guys may be that. Or, could the tenants/agent be taking advantage of some newbie landlords?
                            I agree with MTG that you have to put aside the fact that it's your childhood home. It's a business now, and you need to make money out of it. However "lovely" tenants may appear, however respectable, they can turn out to be monsters later on - it's often impossible to predict who the bad ones might be. So, you do what you can to reduce the risk, and cover your back. A T's financial stability/background is a priority because at some point you might need to make a claim to recover costs for damage caused.

                            Agents will always be keen to make the deal happen and move on to the next one - even good agents.

                            Comment


                              #15
                              Originally posted by lombrozo View Post
                              We've only tried with one agent so far, so might be time to try others?
                              Yes. Whenever I feel my letting agent isn't performing, I always instruct a second agency. The original agent somehow always finds a tenant very soon after; no idea whether it's coincidence or not but it's never failed

                              Having said that, your agent has only had the property 3 weeks, which isn't that long in the grand scheme of things.

                              Comment

                              Latest Activity

                              Collapse

                              • Reply to Rent Rises in 2020
                                by DPT57
                                Well if the market rent for your properties has increased and you think that there would be a good prospect of re-letting quickly and there is a low risk that your existing tenant will stop paying rent altogether then from a business point of view, it makes sense to increase the rent. Having said that,...
                                22-09-2020, 14:57 PM
                              • Rent Rises in 2020
                                by jpucng62
                                I cancelled all my annual rent increases when Covid hit. Since then some people have really suffered financially and others haven’t. In addition LHA rates have increased substantially for anyone needing support which appears to have had the knock on effect of increasing the rent of properties now...
                                19-09-2020, 17:48 PM
                              • Reply to Rent Rises in 2020
                                by jpucng62
                                Where I rent properties (Beds / Northants / Nottingham) rents have risen substantially and availability has fallen. So my question is still, 6 months on from everyone being told to stay at home and with normality of work returning for many tenants (I accept not all) and many people not unduly financially...
                                22-09-2020, 14:44 PM
                              • Reply to Tenants possessions left in abandoned property
                                by MR M
                                I did consider approaching a Tracing Agent to try to obtain the Tenant's current whereabouts or updated information about them but the feeling is that it is not worth initiating this yet as its too soon. They may not show-up as having set-up elsewhere yet or have generated updated information about...
                                22-09-2020, 14:10 PM
                              • Tenants possessions left in abandoned property
                                by MR M
                                The tenancy is a statutory periodic tenancy after the original AST ended. The tenant has rent arrears and a S21 was issued around 3 months ago. There is no deposit and an EPC, gas safety certificate and how to rent guide were all issued previously to the tenant.

                                I believe that the tenant...
                                16-09-2020, 10:03 AM
                              • Reply to Renovation/Improvements vs Repairs / Maintenance
                                by newtenant9011
                                You can prevent the landlord from entering, as you have a right to quiet enjoyment, you can even replace the locks if you would like.

                                In turn, the landlord could issue you a section 21 notice, but the notice period is 6 months currently plus the court backlog.
                                22-09-2020, 14:08 PM
                              • Renovation/Improvements vs Repairs / Maintenance
                                by thesleepingdog
                                Hello,

                                I am having A LOT of trouble with my LL who is continually asking to carry out improvements on the property. It is literally nonstop and it has got to the stage where I am utterly fed up and want to leave.

                                During my tenancy he has replaced all the windows in the house,...
                                22-09-2020, 13:22 PM
                              • Reply to Rent Rises in 2020
                                by DPT57
                                In my part of London there is no market justification for rent increases and imo increased individual landlord costs is not a reason to raise them....
                                22-09-2020, 14:07 PM
                              • Reply to Rats
                                by ChrisDennison
                                These are very interesting comments, one of my councils (South West) told me they had to stop these services unless in public areas.
                                22-09-2020, 12:35 PM
                              • Rats
                                by ETB
                                I have a tenant who has reported that he can here rats in the walls and ceiling of his 4th floor apartment. He says there are other complaints on the tenants facebook group. I have messaged the maintenance company (Name removed) but they are not replying. Just wanted to check who is liable, I'm assuming...
                                21-09-2020, 22:15 PM
                              Working...
                              X