Tenants left in August and since have been struggling to find new replacements. Dropped rent progressively over the months, but now at a point that any drop would not be profitable in the long term. Cue an approach by several guaranteed Rent scheme firms who have offer to pay rent at a price which would be acceptable for these COVID times but not great over the 3-5 year terms offered. Would like to know from other landlords their experience with such companies, pros & cons. firm that is being seriously considered states that they let to council tenants, there are obvious concerns but the contract would be with the firm, not individuals, and expectation would be to return flat to original handover condition.
I would suggest you give them a wide berth. Google ‘rent to rent scam’ if you want to know what can go wrong
You are not only one struggling to find tenant. I have not find a replacement for one of my tenant since September but I did find find for other flat a month before that. I have reduced so certain level But cannot reduce any more.
Please note the company who offers 3-5 guaranteed rent because they may guarantee from the day when when will find the new contract. So if you are struggling they are likely to struggle too.
From my opinion you got the same chances of finding tenant by advertising on Openrent as any other agents because people do look for properties online.
Have you tried contacting your councils housing department, to see if they take on properties for subletting to their applicants. I believe they are safe, certainly more so than the independent companies you referred to.
Unfortunately not all councils will do this though.
Sorry, Chris35, but I think that most experienced landlords I know what say that’s even worse.
totally agree do not involve the council or any 3rd party, you will regret it .Read all the past posts
Fair enough. I’ve never had any experience personally, only recall landlords being interviewed on ‘Homes under the hammer’ stating they were happy with their arrangements.
But as Colin points out, I agree the councils are not trustworthy. Having said that, you would have a far better chance of making them accountable in court if necessary, than an errant tenant or a private scamming company.
I doubt that’s true about the courts either Chris. The reports I’ve read suggest that the Council often makes all kinds of promises about support for the tenant and covering the costs of any damage or unpaid rent that then don’t materialise.
Thanks for the feedback David. Although I’m surprised to hear that. I thought these direct contracts meant the council themselves took over the actual Tenancy Agreement, making them fully liable for the rent and the repairs, and they can’t run and hide if it comes to litigation.
However, I’ve only personally had experience of their housing support department, who guarantor the bond, but they did pay out on the occasion I needed it, without any problems.
The only organisations I’ve had trouble with, are Fusion, an independent charitable group in our area that provide the same guarantor bond facility to tenants, and they baulked at every claim, one took 2 years to get it out of them. I’ve now stopped accepting applications from their sponsored tenants, always a problem without exception.
Unfortunately the last point is not entirely true. Most Estate agents have a ready pipeline of prospective tenants they can arrange viewings with. Sure in some cases the fit may not be perfect (more for the tenant) but they will get more people through the door during Covid times.
Through open rent I had about 8 inquiries in a month and 2 offers by non suitable tenants. Through a local estate agent I had 7 viewings in a week and a good offer I’ve accepted.
Hopefully next year will be better
With regards to Rent2Rent it really depends on the company. Make sure you specify if there are certain conditions for tenants. The company will be responsible for finding people, but they will need to keep the property full at all times.
Generally they make money by carving out an extra bedroom from say a lounge area, or it would be a loss making business. In normal circumstances they may also use Airbnb to fill in shorter gaps, so make sure you are ok with that.
They should also cover any small maintenance issue and dealing with tenants.
There are for sure good one, but also horror stories I’m sure
Even the good ones can go bad in covid times
Great news you found tenants.
I was talking about from my rental experience in my area where we have over 700 properties on the same development so any tenants interested in the same development they make viewings arrangement on the same day one after another or same week.
signing a 3-5 year agreement with any of these “schemes” gives you 3-5 years to rue the day!
I spent 2 years trying to get a local authority to end their tenancy
They destroyed my furniture pack -then denied responsibility referring me to the terms of contract -which took almost a month to arrive after signing and handing over the keys
Lots of police involvement too
Doctor David noble