I want to help out a young couple both with heath issues on Housing benefit and PIP. Their references have failed as have their guarantor being the mother of the girl (a pensioner) albeit a home owner.
Due to their medical condition (auto immune disease thyroids, arthritis, Crohn’s) they only work sporadically.
References from previous landlord are good, they never missed a payment in 6 years.
I really feel for them though I do not know them. they come across as incredibly humble and polite.
I really would like to help them as I know they would never qualify for anything but at the same time I want to protect myself. they come away from a bad estate where they get bullied and harassed by noisy neighbours.
They have savings and are willing to pay three months in advance.
Can I give them a 4 months AST (renewable) and accept 3 months payment at a time?
How can I go about it?
Whether you can will depend on your mortgage if you have one and your buildings insurance, most will say 6 months minimum. In any case you can’t end a tenancy via section 21 in first 6 months so having a 4 month initial term doesn’t decrease risk for you.
It would be better to just do a 6 month ast, followed by a rolling periodic tenancy.
You can take 3 months rent upfront and normally they would then pay monthly after the first 3 months.
Sporadic working is probably the most difficult in terms of claiming benefits and I think there is a very real possibility that their health will deteriorate and payments will be missed. If you are serious about wanting to take them then I suggest you do a much more detailed investigation of the financial situation, such as analysing 12 months bank and credit card statements.
Thanks Richard, I’ll go for the 6 months.