Hi we have had a prospective tenant ask about our property, he is relocating for employment. Technically he has the job just down the road but has not started as need to move closer. He does not work at the moment.
The company have advised him they will provide deposit for the property.
How would you proceed with this?
We would like to help him and the local independent company by providing a place for him to live, we are just nervous.
Id do the referencing anyway in case it throws up other things. If his new job can be independently verified and the salary is sufficient, Id take him.
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if he’s relocating then has he not got previous LL or employment refs you can use?
I’d get letterheaded paper from company with their promise on it to provide deposit. Don’t get him to provide this. Get him to give you a contact (company email address, not phone number) at the company to request it from. I’d also check that indpendent company’s solvency at Companies House which is free to do. No good him getting employment with a company that is on the brink of going under.
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Plus you need to see his contract, he may have a probation period or some other limitation. He’s a risk for the company, not just you. Personally, I’d avoid if possible.
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Thank you everyone, I have obtained an email address for the managing director of the company and requested them to confirm the information he has given me.
As he has not placed a holding deposit I can still continue with other viewings is this correct?
He hasn’t even seen the property and asked to proceed I wasn’t happy with this as I like to meet the people moving in.
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He’s relocating so he’s desperate to get everything sorted - if he’s genuine - hence his low standard for finding immediate accommodation.
You should always continue with viewings even if you do take a holding deposit. The holding deposit basically gives an applicant first refusal of the tenancy within 15 days of paying it. But there are a number of reasons why they may not take the tenancy or you offer them one. If so, you want to have other applicants lined up. However, on taking a holding deposit, I would always inform later applicants that someone ahead in the queue has paid one so although it doesn’t put them out of the running, it lowers their chances. Therefore, I always advise applicants to keep looking too.
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Thank you, I always assumed once a holding deposit was taken viewings had to stop.
Your explanation does make sense and we often thought the same.
I understand he may be desperate, but we do like to meet the people moving into our properties I think the viewing is just as important for the LL as it is for tenant.
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You’re absolutely right, and I would insist on a viewing myself. However, on rare occasions it can be very difficult logistically. A compromise is a video call where you can both see each other and he can see the place via your phone/tablet. IIWY, I would suggest this so that you can get an immediate impression of him. You might find that you just don’t get the vibe via video and that will help you eliminate him and move on. Alternatively, you might just gel and then you will feel better about suggesting a holding deposit and asking him to come and view the place in person as it is less likely to be a wasted journey at that point.
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And I should add that you can only take one holding deposit at a time!
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The holding deposit is a fundamental part of the Open Rent process. Once placed it suspends the the listing and nobody else can see your property or even make enquiries.
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ha! Another reason not to use Rent Now, which is I think what you mean instead of “the Open Rent process”. It’s perfectly possible to use OpenRent simply to advertise. That way, you don’t have to suspend anything when you take a holding deposit. There’s no legal requirement not to allow other enquiries or even viewings so that seems very shortsighted on the part of OR.
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Tatemono
I have been on this forum forum for a while although haven’t needed to list a
Property so unfamiliar with the nuances in the process.
Thanks for that insight.
No, there is no need to pay a holding deposit. I had applicants pay them and I reject them on the basis they pay without discussing with me. If it’s optional it’s not fundamental.
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20 characterssssssssssssssssssssssssss
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deciding on a tenant is holding up a set of scales. personally from what you said this guy is too far in the amber zone for me and I would pass, I would keep looking for a stronger tenant
if he is desperate he may be short term anyway which its a lot of messing about for 6 months
however to strengthen his application
1 ask for a solid house owning GUARANTOR would be good (whom I would want to speak to.)
2. definitely want to speak to a manager or director in his new employ, if he gets released then his company will be irrelevant anyway
3. meet him face to face for a coffee
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In that circumstance I would at least do a zoom call and ask to see passports. I would also do an online or video tour. How far away is he? Needs to be a long way to justify.
Other points already mentioned, do the credit check anyway. He will fail but make you’re own judgement based on new employer evidence. Also consider what his job is. If NHS good, stacking shelves not so good.
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We had a similar scenario and the employee was moving from South Africa for the position so had no UK credit history. In our case, the employer (with assets) acted as guarantor and the family have proven to be perfect tenants.
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Walk away, go for someone with less if’s and butts
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