I’m a new landlord and using OpenRent for the first time. I just want to understand the situation if a tenant wants to pay upfront (6 or 12 months). They have already been renting and paying upfront previously - their current income is low but they would have sufficient funds to pay upfront.
Is a guarantor essential if they have funds for the period that they wish to rent for?
Would they pass referencing?
Would I still be able to get landlords insurance to cover any potential damages to property or refuse leaving the property at end of tenancy?
No point taking more than 6 months in advance as the Renters Rights Bill will probably be law by then and youll have to refund any balance you hold above 1 month.
I’m also interested to find out peoples views on this as I’ve read a few posts where landlords don’t approve.
Say you have a 6 month AST contract and you get paid 6 months upfront with deposit. How can you lose?
During the 6 months the tenant pays another 6 months upfront extending it to a 12 month AST.
If the tenant fails to pay before the 6 months is up get them out, no?
apart from that, how do you know they’ll pay you anything after 6 months, let alone another 6 months in advance? What guarantees do you have that they’ll be a regular rent payer for years to come?
Yeah, good luck with that, esp if the RRB is law by that point.
Hello
My tenants have been in my cottage for nearly 6 months.
Now a large subsidence crack has appeared on cottage next door. It might fall into my garden.
I suggested to my tenants that it isnt safe for them. They didnt really want to go. But are looking at another property.
They say they havent got any money.
(I think he is on £50,000 a year)
They want the deposit back and the months rent they have paid in advance.
But they havent gone yet!
I will probably have the property vacant for a long time because of the nightmare subsidence next door.
Thanks
Thanks for the replies. They are likely to fail affordability checks but have savings to cover rent for the period (they have apparently been paying upfront for several years previously). For purposes of my getting insurance to cover rent (if they fail to leave) or if there is any injury/damage, would I need to ensure that they have a guarantor, or is there any other way? I think that these are my main concerns. Thanks again in advance
it might or it might not be the case… at the mo, who knows? But it’s best to plan as if it will happen.
I’ve never taken out RGI, I prefer to self insure by never taking tenants who cannot prove a regular commitment to paying their dues prior to signing an agreement with me.
