I have two applicants for a tenancy both of whom have failed their credit checks (one earning too little, the other has a CCJ from 2017). Their proposed guarantor has also failed due to not earning enough. They have offered to take on the tenancy giving me 6 months rent in advance (which they have saved up) and thereafter paying monthly rent in advance from the second month of the proposed tenancy onwards. This effectively gives me a cushion of 5 months rent. I’m not allowed to accept this as a deposit and lodge it with the DPS, but they are still willing to do this. Is it possible to set this up under an Assured Shorthold Tenancy Agreement?
They may be trying to trap you. If you agreed, they could later sue you for a penalty of 3x the total value of that deposit. I wouldn’t touch these two with a very long pole even without that suggestion
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Thanks David 122 and Open Rent for your responses to my concern concern. Actually I now understand that this arrangementisn’t something that can be done via the Open Rent AST contract, and I am no longer persuing this line of action, (but re advertising the property).
walk away from these people
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I suspect they aren’t trying to trap anyone, I suspect they are just ignorant of the law.
I’ve just had someone with pets offer to pay a pet deposit - I just don’t think they know it can’t be done any more.
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Yes Cath2, I agree with you.
You may be right Cath. However, I understand that this is one of a number of scams circulating on tenant forums and even if it is an innocent suggestion at this stage, a tenant may get very tempted later when they discover they can now claim a penalty of a few thousand pounds. I agree with the sentiment though that we as landlords should assume the best, but we should also prepare for the worst.
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Drop your rent and attract a tenant who can afford to pay it without a ccj. I have found that if the rent is high the only people who apply are “bad” tenants as they are desperate and they don’t care how much the rent is as they have no intention of paying it in the long term. With current covid notice periods at the end of the 6 months you might get no more and not be able to get them out quickly
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I would not advise dropping rents too far from market value it can attract the wrong kind of tenant too
Rents should be at or very close to market rates
Prospective tenants are suspicious of low rents
They question what is wrong with the property
Thanks for your interest, and here’s a catch up. Sometimes I think that who applies at any one time is a question of luck. I re-advertised the property at the same price and had some excellent applicants. The secret of success this time is that I asked tenants to asnwer questions (especially about their situation and earnings) prior to contacting them. This seemed to sort out the people who couldn’t afford the rent or were only half hearted about applying, so I’ll do this again every time I advertise.
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