Questions and possible pitfalls regarding renting my property to 4 adults

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    Questions and possible pitfalls regarding renting my property to 4 adults

    Hi everyone,

    I'm in the process of finding new tenants, the property I have is a 2+1 terraced house.

    When I have questioned how many people will be living in the property a few applicants have said 4 adults (2 couples). My question is if i rent to a group of 4, should there be a tenancy agreement for all 4 people? So each individual should sign an agreement or should it be each couple has an agreement or should it be one agreement covering all 4? Regarding any rental payment I will only accept one payment for the total rent as opposed to separate payments from individuals.

    My concern is if say one person cant pay the rent then it will be difficult chasing the money etc....If I have one person named on the agreement then this person will act on behalf of the group. Obviously each individual should referenced, credit checked etc...

    Is there any advice other LLs can offer how to best proceed?

    Thanks

    #2
    It would be a 'joint tenancy' with each of the tenants individually responsible for the whole of the rent amount.

    How they divide that among themselves would not be your problem, but it means you can sue any one of them the full amount of anything outstanding.

    But be aware that after the initial fixed period any of those tenants can give you notice that will end the tenancy for all of them.
    That can lead to problems if they have fallen out.
    I offer no guarantee that anything I say is correct. wysiwyg

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      #3
      Each joint T should be named on single AST and individually sign it.
      DPS may only accept a single individual T as Lead Tenant, so I would nominate the person resp for ensuring full rent is paid to LL.
      All joint Ts should be fully referenced individually. Only accept full deposit, do not accept pro rata share from ind Ts. With joint tenants there is only 1 Tenant entity.

      Comment


        #4
        Thanks for all your assistance so far.

        In regards to credit checks, I'm thinking about asking each tenant to get their own credit history via Experian or Equifax and give it to me, rather than getting each one myself.

        Is the above good practise or is it best I carry out the credit checks after receiving written confirmation that each tenant is happy for me to do so.

        Thanks

        Comment


          #5
          Depends how good you think they might be at faking a credit report.
          You (or an agent) should do your own credit check.
          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


            #6
            That makes sense to do it myself. Are you able to pass the cost onto the tenants or is this something the LL has to be out of pocket for?

            Thanks

            Comment


              #7
              I don't charge my tenants for their credit checks, the check is for my benefit therefore I swallow the smallish cost.
              I offer no guarantee that anything I say is correct. wysiwyg

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