Im not sure thats right Karl, but Im away at the moment and havent been able to read enough of the detail, so I actually cant say for certain.
just shows how we can have a different view on a topic and how we interpret the law . Now I think ,do not take any more than a month. However in 40 years I have only been offered 6 months up front Twice.
The best days I feel have gone for the simplicity of being a landlord
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What about for existing tenants? Is there any leeway here?
Our current tenants refused referencing but offered proof of funds, a mixed bag of bank statements and a landlord reference and we only accepted them if they paid rent in advance for their first year.
Their tenancy ends in July when we were hoping they would either provide proof of regular income to continue the tenancy OR pay another year in advance. We would not want to continue the tenancy if they could not provide proof of regular income and it sounds as though weāre now prohibited from receiving a yearās rent in advance.
There was very little interest in our property last April-July and we were desperate while also paying council tax and vacant property insurance so needed to get tenants in - quickly.
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I think the referencing affordability also needs to change.
Many tenants although they may be able to easily afford their rent and bills and living costs they are unlikely to earn x30 the monthly rent a year and many do not have a family member to guarantor or rent up front in this climate.
It never ceases to amaze me that when mortgages go up landlord and agents automatically think a tenant will pay their mortgage or go for a much smaller less of a property or move out the area just to fit their referencing agencies criteria even though they can easily afford the property they want and may have an exemplary rental record. Families are not going to want to do that renters will now likely buy instead once the government relax mortgage rules.
These referencing agencies are making money with letting agents on the back of landlord and pushing tenants out of the market. Goodlord are the WORST they include many direct and indirect discriminatory terms that I have reported to The property redress scheme. Rents are falling in my part of London. Tenants have had enough of being cash cows and treated like the scum of the earth by Letting agents.
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Rents are falling people!
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The problem with this argument is that landlords are not letting property as a charitable endeavour. If they cant at a minimum cover their costs, they will end up evicting the tenants and selling up, as so many are already doing.
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As with all businesses if it fails to be profitable as costs escalate it will cease to exist. There is a product on offer at a price, and a consumer can choose to buy it or not. Every tenant knows the precarious nature of private renting
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Yes of course, my point being tenants do not need to earn x30 the monthly rent a year in income to rent a property. Landlords donāt need a tenant to earn that much in excess of rent either. Many great tenants are being excluded from even viewing your properties because of this criteria being set by unregulated referencing companies.
Itās also the assumption by letting agents that we donāt know how to manage our own money and the general consensus to assume every tenant will smash up a property. I dont know a single tenant who would do this. Also the assumption that all tenants who may have a part benefit income are scum bags or are bad at managing their own finances.
Agents are pre screening tenants and not letting them view on these basis. Which is wrong not only for the tenant but also for landlords as you are missing out of many good tenants because of this. Tenants in this climate donāt earn x30 the monthly rent a year, many dont have a family member as a guarantor and many donāt have rent up front but they may be exceptional tenants otherwise and can easily afford your rent, their bills and their own living cost and spare cash for emergencies and savings. People rent for a reason - because they currently cant buy but I think this will change soon.
Many are being unreasonably excluded. I had one agent tell me before she even knew anything about me that the property was only suitable for couples and families. I think tenants are smart enough to know if a property is suitable for them or not. This is wrong on so many levels.
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Why should it be precarious, families want long lets in well maintained properties. Why cant this be achieved?
Because governments move the goal posts. Markets change over time. If it becomes too difficult being a landlord theres no incentive to be a landlord.
Most landlords want good long term tenants, theres always the few that squeeze and show little sense of reasonableness and its only about the maximum profit. This is the same with all areas of business.
What do you think forcing a landlord to sell to tenant at a big discount would do for example?
No one is asking a LL to rent at a discount but a tenant doesnāt need to pay x30 the monthly rent to rent a property full stop.
It needs to work for all, tenants need rental homes and landlords want business but many who cannot buy need homes and not to be treated like commodities.
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I meant EARN x30 the monthly rent a year *
Letting Agents need to be more inclusive and have far better training for all concerned, considering all circumstance. I know Homelet are good at this they have got rid of the x30 monthly rent and guarantor criteria and instead base it on income, versus rent versus any debt and outgoings. Much much better system.
It would be better though if they didnāt exist and a computer programme was invented to deal directly between landlords and tenant. There are too many dodgy letting agents.
Labour have ideas about forcing landlords to sell to tenant at a discount, when they decide to sell. If this happens then even more of the diminishing numbers of private landlords will disappear. Yet more backfiring.
I agree there are no end of dodgy agents. Openrent is a tool that allows direct dealings between tenant and landlord. Unfortunately if they want RGI then the tenant must meet their criteria. Insurance firms base all numbers on measured statistical data to determine the risk. Not all landlords take RGI so the 30x amount does not apply, they will apply discretion.
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Agents are voluntarily appointed by landlords to do the management for them. They cant or do not want to manage it themselves. Choice is always a good thing.
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Really, I canāt see that happening. If that were the case they could force anyone to sell at any price thats dictatorship.
I also think and Rent Guarantee insurance for tenants would be a good idea, that they could buy to give a landlord peace of mind but not at an extortionate cost.
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I have also taken rent up front from those who are international, do not have a UK guarantor, and who will not pass a credit or reference check as it is their first time in the UK. Iāve also taken rent advance from students whose guarantors do not wish to be reference or credit checked. However some guarantors do not realise they have this option and would not ask, neither the international students.
It will be that these tenants will find it very difficult to rent as landlords will not take them on board. Itās too much a risk. It really is a nightmare!
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Rent to UK tenants then there are lots why would you only go to international unless you specifically just want the money up front.
Having any business is a risk that the point. Anyone with a mortgage could lose their job same with tenants.
I think some sort of rent guarantee insurance for tenants to purchase snd show to a landlord would be a really good think. I have feeling though that insurance companies would take the p1ss and charge them a months rent to do it when landlords insurance is only Ā£250 year or something isnāt it?
The accepted measures of affordability, (eg 30xā¦) are crude and sometimes overblown. However they are also sometimes insufficient. It depends on the tenants lifestyle and what other regular costs they have, such as car or alimony payments. The alternative is that a landlord goes through all their bank and credit card statements for every tenant, which is time consuming and very intrusive and forces the landlord to make judgements about what they can afford, which can be equally crude.
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