Nope , I wouldn’t trust a tenant full stop with my property insurance
When you borrow from banks their affordability equation changes. As a Landlord that is my equation and if I want I can dictate 35x rent = earnings. No one has a say on this - if anyone has then they should take the responsibility of paying rent!
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Isn’t that what deposits are for?
This is my point, hoping there is an insurance firm out there that can provide a tenant with a type of insurance that could rent guarantee them and be showed to the LL at referencing.
Landlords seem so much more risk adverse then when I first started renting it really seems impossible hoops for us tenants to jump through constantly. It is almost like unless you are a couple with no kids and working full time then any other person on this planet is excluded from renting.
All I can say is many of you must have had very unlucky bad experiences with tenants which makes it horrible for us good tenants out there.
Deposit barely covers a months rent and a bad tenant will not pay last months rent and leave! Believe me they do! Yes we are risk averse as nothing seem to protect landlords anymore. With the new bill those hoops will become more difficult to jump unfortunately. Last time I waited 3 months before renting amongst many applicants. Government leading the way to make everything difficult and it is going to get worse!
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Oh so yet another cost you are dumping onto tenants without us knowing. This why you get the rep of being greedy.
You seem to have such dislike for tenant’s yet we pay your mortgages and profit? I don’t understand why the bitterness.
I don’t know all the answers, I am just suggesting ways out loud to be in favour for all, i’m not an insurance broker so would not know how that would work.
Maybe they pay the insurance at the outset of the tenancy for the duration of the agreement.
There are more tenants looking for properties, & less properties to rent, so Yes, Landlords can be more choosy, and with tightening regulations, it makes sense to be more choosy. Pick only the best tenants and minimise your risks.That’s business.
Landlords operate in the market created by politicians, and they are not doing a great job of creating a nice market, so please expect it to get worse for Landlords & Tenanats before it gets better.
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What’s your view as a tenant on the rising number of corporate landlords?
A tenant could just stop renewing RGI so would not offer any real security for landlord.
5 weeks deposit to protect against damages is such an insignificant amount. Again another ill considered cap that ended up working against tenants.
Landlords are increasingly risk averse as government are shafting them more and more from all sides! Landlords have pick, 100 applicants per property is not uncommon. How would you decide with that many to choose from?
Don’t come to me with your “we pay your mortgage” argument! If you think rent can buy you a house then buy your own! £1000 in rent is approximately £600 for a high earner LL ( with no running expense considered). So You should be able to get a bigger house if you pay your own mortgage. 20+ years ago I was renting a room for myself and now I have properties to let. I worked my socks off to get where I am and I will do my best to avoid risks.
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Exactly! I was replying to Tesh’s comment urging people not to take a deposit.
Landlords risk aversion is a direct consequence of the constant tightening of regulation that has made it very difficult to remove a bad or non-paying tenant and thereby limit their losses.
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thanks, agreed, all the best to you!
Hi Mark10
I wanted to respond to your comment about the loss of financial incentives for being a landlord due to subgroups of tenants not meeting affordability criteria (which I agree with Louise66 is set too high) and I do so with curiosity, I’m trying to word this as sensitively as I can because I’m aware I don’t have the full information from your perspective.
I imagined that acquiring a property as an asset that would be likely to accrue value over time (often in the absence of major intervention) was the incentive for being a landlord in the first instance. In theory you could leave it empty and still usually expect to make money over time (I would never condone this)
The tenancy side keeps the house secure and in use (which is better from a damp perspective than being empty) essentially that’s why property guardians exist. I appreciate there are annual costs associated with maintaining a tenancy and these should not be overlooked, but the rent should cover these. Landlords make profit on selling the asset at the end when it has accrued value. I assume the tenancy costs, time and expenses and a little profit is covered by the rent and the tenant maintains the dwelling by running the heating, keeping it secure and aired in a manner it wouldn’t be if you let it sit there for several years as a static asset accruing value.
However I’m naturally open to being challenged as I don’t have the practical experience you do.
my incentive was as a pension in older age. Property value had nothing to do with it as 50 years ago i had no idea how much property would go up.
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I have several concerns about the Renters Right Bill and I think some of them are shared by many of you from what I have read.
I wonder if there are problems with taking/providing several months rent in advance in a AST. It’s different if the tenancy is fully paid for and then renewed as I think that’s clear, but in an ongoing tenancy I’m not sure how the money is protected.
I feel it would serve everyone better if the additional rental security could be added to the deposit and arbitrated accordingly. My understanding is that in Wales the deposit amount is uncapped. This meaning there would be no risk for it being used for other purposes or coming under question, but it would be lawfully provided if default occurred.
The end of S21 is a concern because if a landlord wishes to reclaim their property I am concerned there may be a perverse incentive to create problems which would negatively impact the tenant going forward. However I am unsure of what circumstances might make a landlord wish to reclaim the property that are not accounted for. The only thing I can think of is a personal disagreement among related parties, not connected to the tenancy, but I assume normally these things are not connected.
It feels like the landscape is becoming more rigid and I think both parties need choice.
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Yes, that’s what I mean really property has long been considered a safe investment.
Peoples reasons for become a landlord are varied. For some its “accidental”, but for those who choose, many are more interested in the rental income as a source of income, others in capital growth, although thats not guaranteed. There are many landlords stuck in negative equity, particularly in cities in the North of the country. I did a total return on investment calculation and my return will be a combination of both. With all the costs a landlord must meet, very few are getting rich on the investment. Lower risk investment in stocks and shares would give similar returns. And thats really the point. If it becomes too hard for landlords to operate, they will simply sell and invest elsewhere, as many are now doing. Given that the private rented sector is second only to owner-occupation in scale, that could have a devastating effect on homelessness in the UK.
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I think your point about rent in advance being unsecured is correct. Agents must have protected client bank accounts, but that doesnt apply to individual landlords. I think that might have been a viable alternative to scrapping multiple months of rent in advance.
I’ve spent several years reading and responding to questions on landlord and tenant forums and have seen several instances where the need to recover possession would not be properly met by any of the existing or proposed section 8 eviction grounds. However, the biggest problem is that the process is not fit for purpose. The current court delays mean about a year from notice to bailiffs and during that time the tenant may have stopped paying rent. The rent arrears ground is very hidebound and can be defeated by a tenant causing damage and claiming its disrepair. The ASB ground is particularly problematic as the burden of proof is usually unachieveable, particularly if neighbours are afraid to appear in court. I believe that this is likely to be a serious issue going forward, with many communities left blighted by persistent anti-social behaviour.
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Gold has gone up over 46% in the last 12 months, wish I’d sold mine & invested in Gold Brittania coins, Id be minted now (pun intended), and all with no CGT
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Is there any chance that the process side when there are problems will become easier following RRB? There seems to be promises, but it’s a little unclear to me.
There are horror stories when they happen, but I’m convinced most tenants of all types want to make a nice home and wouldn’t cause any harm, after all it’s not like LLs don’t know where they live!