New tenant paying £££ up front- dodgy?

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    New tenant paying £££ up front- dodgy?

    Hi

    I am new to letting and I'm not sure if this is dodgy.
    I have just shown a lady around one of my properties (she was viewing it on behalf of her partner as he can't come until the weekend)
    She has just emailed me and said he wants the flat and he would like to give me the the months deposit,and the first 3 months rent !
    I did explain to her during the viewing that I would be doing a credit check and checking all his references (I will use tenant verify)
    so presumably if he is dodgy it will show up.

    I just can't think why he would want to give me so much money,that is what is making me think something is not right here,or is he just really keen ?

    Any advice would be really great !

    #2
    Originally posted by Loulou View Post
    Hi

    I am new to letting and I'm not sure if this is dodgy.
    I have just shown a lady around one of my properties (she was viewing it on behalf of her partner as he can't come until the weekend)
    She has just emailed me and said he wants the flat and he would like to give me the the months deposit,and the first 3 months rent !
    I did explain to her during the viewing that I would be doing a credit check and checking all his references (I will use tenant verify)
    so presumably if he is dodgy it will show up.

    I just can't think why he would want to give me so much money,that is what is making me think something is not right here,or is he just really keen ?

    Any advice would be really great !
    Perhaps your property is ideally located for a cannabis-growing enterprise?
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    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
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      #3
      its odd that he has offered to pay so much in advance without you asking for it? We get a lot of people who have sold their properties and are moving into rented pay 6 months in advance as they just want to pay whilst they have the money and dont want to worry about finding it over the period of the tenancy. Needless to say we will check them out.

      What was the partners reaction when you said you would still do the checks??

      Give them the forms and see what happens - keep your options open though!

      Comment


        #4
        She was fine when I said I would still do the checks.It seems the place he was renting was repossesed recently as the owner never paid the mortgage and now he is living with a friend until he finds a place to rent.He has a 13 year old daughter that visits him every weekend,so I can see why he wants the 2 bedrooms.
        It was a block viewing and the other people there wanted the place too,so perhaps he thinks by offering the most money I will chose him ?

        I will do the checks and see how he comes out !

        Comment


          #5
          If there is a lack of good property in your area then the behaviour can be explained. But you should always be careful with people who are desparate for accomodation.

          If you are the LL or the agent, you need to meet him before you say yes and do all the ID checks and references ( eg previous landlord, bank statements) as suggested in these forums; so that you are sure that the credit check is for the right person. Credit checks are not infallable so you need to do everything thoroughly to cover all bases.

          Also be aware of the 'I've changed my mind' scam when they ask for all their money back but the cheque never cleared properly in the first place. Also, even if the money does clear properly,by refunding their money with a cheque you may be helping them to launder money illegally!
          All posts in good faith, but do not rely on them

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            #6
            Originally posted by Wickerman
            How does that launder money? All it has done is replace a pile of cash with a cheque from a lettings agency. If you put that into a bank, you still cause the same effect as putting cash in, unless you are talking about thousands and thousands.

            Money laundering is best done by cash heavy businesses - lettings is good as you could buy a house with legit cash, and every year declare thousands and thousands of pounds income every year, all of it "in cash" from tenants who do not exist. You put dirty cash in your account, pay some tax on the profits and you have cleaned some money. Why do you think the provisionals were doing this in places such as Manchester? Tanning salons are also good, while some have other nefarious things going on behind the scenes. Car cleaning places are also good - in fact so good there are gang wars over them!!!

            Thanks for the advice Wickerman, thats a great idea. Now where can I open up a car cleaning business to clean all my cash

            Comment


              #7
              Originally posted by Wickerman
              Money laundering is best done by cash heavy businesses - lettings is good as you could buy a house with legit cash, and every year declare thousands and thousands of pounds income every year, all of it "in cash" from tenants who do not exist. You put dirty cash in your account, pay some tax on the profits and you have cleaned some money
              Real Sound Advice....Cheers Mate!

              Comment


                #8
                I prefer to use a washing machine for my laundering... it all comes out loverly and clean and smells of lavender and chamomile too!!!
                GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

                Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

                Comment


                  #9
                  Originally posted by Wickerman
                  How does that launder money? All it has done is replace a pile of cash with a cheque from a lettings agency. If you put that into a bank, you still cause the same effect as putting cash in, unless you are talking about thousands and thousands.
                  I agree this may be an unlikely scenario, but if someone wants to give you a lot of money without being asked, this could be one explanation.

                  Money laundering is all about concealing the origins of illegally gained money. Dirty cash is converted into a cheque from a reputable company or person, which is easier to 'explain' when put into a bank then a pile of dirty cash. 3 months rent and a deposit could easily be several thousand pounds, and done on a regular basis using many landlords could mount up.
                  All posts in good faith, but do not rely on them

                  * * * * * ** * * * * * * * * * * * *

                  You can search the forums here:

                  Comment


                    #10
                    Bel is correct. Illegal proceeds exchanged for clean funds and then layered into other organizations.
                    ASSUME NOTHING - QUESTION EVERYTHING!

                    Comment


                      #11
                      Thanks for all the advice.I am just wondering if there is anything else I can do to try to make sure this guy adds up ? (I am going to use tenant verify to check him out)
                      Any other tips you have would be really appreciated.

                      Comment


                        #12
                        MONEY Lundring

                        Money laundering is a word often used since 9/11 to be educated in to it, go to amazon and uy a great book called The Laundryman by Jeffrey Robbinson, really explains the subject well

                        Comment


                          #13
                          This all seems very paranoid. It strikes me that the answer is simple. Look at the facts:

                          - Private landlord (no application fee) instead of a LA (£75-150 per application)
                          - LL advised at viewing that a credit check would be performed
                          - Applicant is interested, and offers higher security than would usually be requested.

                          It seems fairly obvious to me that the applicant has some poor credit history, but has always considered rent to be the 'priority' bill (as most people do), and, knowing his poor credit will show up on a check, is offering a higher amount as security than would usually be requested.

                          If the check shows this to be the case, I don't think you actually have that much to worry about. He's clearly taking the tenancy seriously, since he's offering 3 months in advance - there's no way he can not pay the last months rent and leave you with just the deposit to cover a months rent + damage. If you're concerned, treat the advance rent as a higher deposit (so he's still only paying a single month in advance) and tell him that you want to serve the S21 at the time of move in to cover your back - that way, you can start the eviction ball rolling at the first late payment or other sign of trouble, and even if you need to go to court, you can still have him out by the time the large deposit is spent on his rent arrears.

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