Hi Lanlords
Mum with 3 grown up want to rent it. mum is on UC. Sons and daughter work full time. 4 will be staying together.
Can daughter be grantor who will be living there too. How open rent check ref, affordability with someone on UC. I m totally new to this tbh.
Can UC alone be on the contract for tenancy. I m confuse .
What will be the best to do?Any advice will be appreciated,
I haven’t run through the checks on open rent yet. If failed what is next.
Thank you for your time
Maybe get some LL training? Join a LL association?
Openrent have a page with a copy of their sample ref report
Source: OpenRent Tenant Referencing & Credit Checks | OpenRent
Are the potential tenants proposing that even tho 3 will be working only the mother will be named as a tenant and responsible for the rent? Personally I wouldn’t accept that. Why do you/they think that’s ok?
Ask about their current situation- whether all 4 renting together at mo, rent being paid, who is contributing/on tenancy agreement,why moving. Ask why they only want mother as named tenant when it means they are more likely to fail the referencing/affordability checks. Ask if there is anything the checks on all of them would reveal that you should know about like CCJs or bad credit history or debts?
Seems unlikely UC paid for 1 adult will cover rent for a property for 4 adults. Check the amount if rent is over 40% of the mother’s gross income they can t afford based on mother alone. (Many people use 30% I’ve read here in the past OR use 40%)
Check the LHA allowance for the property? (Ask mother for evidence of current UC and that she is entitled to claim for a 4 ? bed place if that’s what you are renting out) Search for Local Housing Allowance rates by postcode or local authority : DirectGov - LHA Rates
If they fail the checks you have to decide whether important to you or not. If Checks can’t confirm their ID personally I’d reject and find someone else; if they show they can’t afford it , I’d find someone else.
But frankly sounds like they may be wasting your time or trying to hide something by putting only in the mother’s name.
Best
Hi David
Thanks for your message, mum get pip £2400, they have lived in current address for 3years. No problems with payment so far.
I m not sure how open rent ran the checks about refinancing, credit check. etc.
I mentioned to them it need to be 2 people on the contract and background checks. Guarantor need to be separate person. Really confuse about private rental or benefits,
Tbh I m a bit nervous about renting with current rules changing by government. And also new to this.
Thank You so much for your suggestions
@Kay8 maybe use a letting agent instead to make sure you follow all the rules.
40% of 2400 is 960 so unless the rent is 960 or less they can’t afford based just on that.
You need to decide what sort of tenants you want - take your time, you don’t need to choose the first who say they are interested and even if you do referencing checks you don’t have to go ahead. You are trusting them to take good care of your property and if they don’t it could be a nightmare. So you must choose carefully
If they don’t pass the referencing checks you won’t be able to get Rent Gurantee Insurance to protect yourself against non payment.
Consider what Landlord insurance you need - as well as RGI you can get insurance for your building/contents (different from standard insurance) and for legal expenses if you had to evict.
You also have to have a mortgage which allows you to rent the property out or you could be in breach of mortgage conditions
Sorry if all obvious
Good luck
Thank you so much, really appreciated your time
Regards
k
Having the Mum alone on the agreement could be benefits fraud
This is a good point from @David122 .
DWP would generally expect all working adults in the same household to be contributing to the rent, not just the mother who is on UC, and would reduce their UC accordingly
(See Non dependant deductions: universal credit - Shelter England )
Maybe best reject and find someone else
Best
Sounds like trouble, too many variables
You can put all adults on the tenancy, including the mum on UC. UC alone can be on a tenancy too, but affordability checks still apply. OpenRent usually checks income, work, credit and affordability for everyone.
A guarantor normally should not be living in the property, so the daughter may not be accepted if she is also a tenant.
If checks fail, landlords sometimes ask for a different guarantor or rent in advance.
I suggest you avoid. Potential problems. If only the Mother is on the contract the others are not bound to abide by the terms of the contract AT ALL. So they are effectively “guests” and if they trash your place, you can’t go after them. Nor are they liable for the rent. If you accept the mother on the basis of the income of the others, what happens when those others leave/fall out etc. You’re basically accepting the mother on the PROMISE of money from her relatives. No. Avoid. AND you can’t get them out easily. Or if you must go down that route, ALL of them must be on the contract and JOINTLY AND SEVERALLY LIABLE so that you can pursue one or all of them for the outstanding rent/damage.
Thank you so much, really appreciate you time
@Lucy65 @Kay8 Agree totally with this. Basically you have adults who are working and want to become tenants without any financial responsibility.
When the mother doesn’t pay or falls into arrears in theory you pursue her (and for any damage costs) but as she’s on UC she’s not likely to be in a position to pay up, and the council will encourage her to stay all the way up till you go through courts and bailiffs which could take well over a year, because they don’t want another homeless person to house.
Unlikely the daughter would pass as guarantor able to pay for rent for a house of 4 if mother didnt - and if daughter can afford to be guarantor why isn’t she contributing to the rent by being a tenant on the agreement in the first place. Makes no sense.
Seems likely they are wasting your time hoping you don’t bother with referencing or will buy a sob story when they fail to pay.
Good luck