Hi everyone
We are first time landlords (need to move away for work so renting out the family home) and have been really surprised that all of the prospective tenants seem to have issues of one kind or another ie IVAs or moving from overseas with no credit history, etc.
Every viewer so far have voluntarily offered 6 months rent in advance to get around the issues, but are also asking for a 12 month lease for security. Our preference would also be for a 12 month rather than 6 month lease.
My question is - how does 6 months advance rent help for a 12 month lease though. You still dont know that they are a good risk and that the rent will be paid in 6 months time. Anyone else had this? How did you get around it? Guarantors or 12 months advance rent are not an option.
Thank you!
you donāt get round it. I never accept 6 months in advance ā¦ itās a red flag for me.
Iām wondering why guarantors arenāt an option for you?
Are you asking to see 6 months of statements for any applicant youāre willing to accept?
All you are doing is delaying finding out whether you have bad tenants by six months.
Welcome Emma. I hope you find this place useful.
Thereās a sump of applicants who have been rejected by all landlords, eventually they find their way to you. Thatās why you get so many problematic enquiries. They will lie, they will mislead, they will offer you rent up front - they are desperate.
Ignore the rent up front. Keep your head. Screen as much as you can by asking questions before offering a viewing. Take references, only take the tenant with no issues on the reference. Keep your head, sven if it means you have to work hard to let, and you have to have a void.
The last time I had a place on the market - in January - I had close to 100 applicants. 90% of them were poor quality.
12 months rent together with deposit would, unless youāre in a cheap area, go over ORs maximum so you couldnāt collect through there.
If they pay 6 months up front it shows a few things:
- They wonāt default on a property in the first six months at least, where itās virtually impossible anyways to evict someone.
- It shows they have some money and commitment
However, this should only be an extra layer to your normal checks and references. Some tenants do this so youāll see the money and ignore the problems.
Thank you everyone for your feedback. It is really helpful.
Iām in a similar situation to youā¦ first time / accidental landlord. And yes, Iāve also had comments from others that I shouldnāt be (thatās for another discussion).
I experienced much of the sameā¦ I do wonder if people who wouldnāt be accepted by letting agencies, find their way here.
We started down the route of looking at bank statements etc, but in the end I didnāt feel comfortable if a suitable guarantor wasnāt found (they provided but they didnāt pass either unfortunately), so I let that couple go as itās just a risk I was not willing to take.
My next pair were self employed, but I stood my ground in terms of asking for a guarantor, which we got in the end. I also took out the rent guarantee insurance, as a backupā¦ at least for the first year (and for this, you need to have either passed reference checks or a guarantor who passed).
Itās a bit of a rollercoaster for sure. But I agree with what others have recommended in terms of asking qs upfront. I would err on the side of caution, and find a tenant that you feel secure with / has a guarantor in place - if itās possible. My uncle, whoās an experienced landlord gave me some
good advice: āif itās complicated at the start, itāll likely be complicated down the lineā.
In hindsight, im not sure I would rent myself againā¦ referencing process was extremely stressful. But now Iām through it, Iām feeling a lot more confident and at ease. Will have to see what the situation is in 12 months time.
Itās a lot to learn/navigate but not impossibleā¦
Best of luck!
did you ask the s/e for 3 years accounts?
This is where the Government were so foolish to limit deposits to five weeks. It shows a complete lack of understanding of the rental market.
In the old days I would consider a larger deposit and rent monthly so you have a cushion if there is a problem but wouldnāt take anyone now unless they had a cast iron, problem free UK history.
Anyone offering 6 months in advance is going to screw you over . Ignore those applicants. Only accept those who can pass referencing. Overseas visitors will be less reliable and will most likely bring additional occupants. Donāt take any risks with protective tenants, itās just not worth it.
Hiya, apologies for the question but Iām super curious from a tenants perspectiveā¦ Iām currently looking for a place to rent for myself and my partner and weāre offering to pay upfront, I guess you can say Iām pretty desperate as Iāll technically be homeless in two weeks but because Iām also self employed, I understand some landlords will look at that negatively but I want to give them the security that I have enough financial stability to pay upfront despite being self employed. Are upfront payments really viewed that badly?
Thanks so much in advance 
I have had 2 tenants who paid 6 months up front , never had a problem with them
Rent up front should not be a red flag. It is very common in student towns and london. However it should not be taken as a cure for other problems like poor credit, no income. Be mindful of your rental income for the year as a large payment at the end of the year can mess with tax. Nothing is a substitute for good referencing, good credit checks and a good gātor.
I have taken 6 months up front a few times and had no problems. It shows they have access to some funds, so can manage money.
Do you have a landlord insurance or a rent guard insurance? If your tenant cannot pass the referencing and report shows that, your policy will not cover you for it, check the wording. It will come with risk. With that said, I had young tenants who were not able to pass referencing and offered 6 months in advance and I agreed. They are decent people and it worked well.
I would recommend using a reputable estate agent to screen potential tenants. As a landlord, I personally prefer not to enter into an agreement with individuals who have a history of financial issues. Itās important to take the time to carefully consider, research, and evaluate potential tenants to avoid complications in the future.
When it comes to property maintenance,is better to think how are you going to do as this itās crucial (inspections, repairs, and ensuring that annual certificates are up to date). Good luck!
I think thatās a rather naive view to be honest.
Dear Emma
My wife and I became landlords some 30 years ago when we needed to move away for work.
We rented our own house and with our income over the years invested in multiple rental properties, close to London and more recently other cities.
Some observations:
I agree you should be cautious about applicants with a history of financial problems, however, may I understand if you are ruling out those moving from overseas for work and unable to provide UK credit history?
As someone who has worked and rented across the world, I have often had no local country history, and been able to substantiate affordability through UK financial statements and local company evidence of earnings /contract.
Likewise, I have recently taken on successfully the following who all had challenges with acceptance requiring landlord flexibility :
-
A General Manager of a food company coming from India who was unable to pass clearance but had an income of over Ā£100k and was happy to pay rent in advance. He even bought my car off me!
-
A South African film professional āColouriserā who makes each series of āThe Crownā look vintage - a highly talented person who I helped home and even helped with his UK right to work paperwork.
-
During Covid, a lovely young Portuguese couple (recent graduates) who came over to work on the spread of pandemic diseases with the big UK pharma companies and four years later are still with us with no sign of moving.
-
A young doctor from the Philippines and his husband a human rights advocate. The doctor is now working 60 hrs per week in my local A&E!
The moral is āit dependsā.
No one solution fits all, and by approaching the issue in a business-like way, by meeting directly with your prospective tenants and finding the facts that fit or disprove their story, you will make the best decision for your home and your objectives.
I also believe that credit checks can be run again - say after 3 months.
I have not had to do this but if I was as concerned as you - which I have not yet had need to, I would look at the possibility of 6 months and then a new contract with clearance and rental guarantee.
In my view, what you are looking for is a quality tenant and a positive direct relationship with your tenant and despite a few niggles Openrent has for us been by far and away the best way to achieve this in recent years.
The traditional estate model of the past was the opposite of this - and I would not go down that route again. I appreciate things have moved on, however, I am clearly better with a successful relationship with my tenant, not an estate agent.
My only regret is that Openrent was not around 20 years ago if not 30!
Hope this is helpful,
Mario
I donāt accept anyone who cannot afford the ren, ie a joint income of well over 2.5x the rent in steady jobs and no CCJs or IVAs. This means I donāt accept tenants who offer 6 or 12 monthsā rent.
As you say, what happens at the end? I want long term tenants who can pay the rent and wait until I find someone.
In 5 years with 5 properties Iāve not had one person pay their rent even a day late
It shows they have access to some funds at the time they move in. It shows you nothing at all about how they manage money. Only history can do that. You have no idea how they got the money at all. And just cos they have the money, doesnāt mean that they will pay the rent in the future. The only T Iāve ever had hassle over rent payments from had tens of thousands in the bank and was on a take home salary approaching 50K.
People who can manage money donāt need to give you rent in advance because it will always be there for them to pay.