I should start by saying I am now in the process of leaving the industry after 25 years odd. Had enough! The disincentive to continue for me has been the ever-widening range of ransoms that the tenant can now put you under - being often advised legally for free and then encouraged to do so by authorities, not least the council.
God willing, my very last UK rental completes Friday 26th Feb. Wish me luck!
Having declared a potential conflict of disinterest, here is one seasoned suggestion you may wish to consider from an old timer. It will end up more than one. I just know it.
In any event, please do check for yourself that you conform to the most current legislation. It continues to change rapidly and I may be out of touch because I don’t update myself as regularly as when I had multiple live AST’s. If any other landlord/Open Rent bod sees issue here, let me know and I will immediately amend or delete. Call that a disclaimer.
Check the score for yourself always. Most particularly, when your single source is a forum. NRLA is worth joining for the advice (not least the insurance offered against cost of a tax investigation.) You may also be reading this months after it was written. I am not as sharp as I used to be!
- Make it clear from the outset that should an interested party wish to proceed formally, the property will continue to be advertised but will be amended to clearly indicate that it is ‘rented pending reference outcome’ and that, while enquiries may still be taken (names and contact details taken), no further viewings are possible pending outcome of said applicant’s references.
I didn’t write that in a very clear way, perhaps, but I can’t be bothered to amend!
In a nutshell, continue to advertise where others’ details can be taken but do not allow further viewings. This, for the reassurance of the applicants. You could allow further viewings, of course but that might put too many applicants off and it doesn’t ‘feel’ right or fair, me thinks. On the other hand, if you are suitably persuasive that they are first in line, maybe you can get away with it.
Either way, don’t behave dishonestly i.e. Best not to conduct sneaky viewings when you said you wouldn’t; you could get caught out!
- Confirm all conditions discussed in writing to them, showing that all parties have agreed and that they have first refusal should two applicants be similarly suitable.
Re-read that last sentence.
You have NOT held yourself to ransom if you choose your words carefully. ‘Similarly suitable’ is YOUR call. If, during the process, you have your doubts, they become less suitable. Your ‘gut’ or first impression is more valuable than you might think. Use it discreetly and act on your vibes.
And all in writing; always in writing: always signed & dated. Copies to each.
My formal, professional approach has, over many years now, palpably reassured the genuine, intelligent applicant (I asked: they told me) just as it has intimidated and frightened off the shallow and the trivial time wasters and dreamers.
It always suited me just fine. It’s called vetting.
For me, it started with my advert. If they wished to view, I required email, mobile and current address, which I always did my best to somehow verify. If they didn’t want to give their address, why would I give mine? I always called 1 hour prior to confirm their wish to still turn up having previously asked them to let me know if they changed their mind. Genuine applicants/decent people didn’t seem to have issue with this. Those that kicked up would never be my type of tenant.
And so, they gave themselves an early exit. An all round time saver.
It also must have greatly minimised nosey neighbour syndrome and would-be distraction burglars in the case of currently tenanted properties. Think on your feet! If you were a burglar, how would you gain easy access to the unwitting and their valuables?
My tenants, I am hoping, always had personal reassurance that new viewers were vetted including address verification wherever possible. I also accompanied ALL viewings and all viewers stayed together, room to room. Whilst my property, it was their home. And, indeed, their personal property within it. I had the greatest of respect for this and never forgot to show it.
As I leave this industry, I would give one piece of advice above all else. Think on your feet, be cynical, explore, discreetly and thoroughly consider worst case scenario in order to minimise or avoid.
- Encourage the taking of a ‘holding fee.’ DON’T ever refer to it as a ‘deposit’ since a securing or holding fee does not need to be lodged per se and calling it a deposit can create unnecessary animosity where a tenant may, wrongly, feel they subsequently have a claim against you.
This secures the property in their name -subject to satisfactory refs and with a mutually agreed AST start-by-latest-date and with a fully itemised receipt indicating all of the above and circumstances in which their holding fee both
is/isn’t returnable. This needs to be all-party signed, in each other’s company. If they don’t like this idea, fine but you should then consider your investment to pay for their refs (an outrageous change in the law, in my view and last straw for me, pretty much) a much riskier venture. Without a holding fee, you encourage flippancy. How many other landlords might they be causing to spend to get their refs simultaneously?
Specifying a mutually agreeable move in or ‘move in by… latest’ date subject to ‘refs satisfactory to the landlord’ is vital.
That’s an absolutely crucial phrase, by the way; the ref agency advises but it is YOU that decides. If they pass but you don’t like them, DO NOT contract with them. For me, the holding fee issue has always helped to separate the wheat from the wasters. Money talks.
An agreed 'move in by… latest ’ date, subject to satisfactory refs., is very important in order that you don’t get endlessly messed about with shifting sands, without recompense. (And by that I mean the ability to lose them their deposit.)
“We still want to move in but it will be another two weeks or so.” isn’t on, really…
unless they will pay the rent from the original date, of course, or you are happy to negotiate. If they pay half, they are serious enough.
You are a business. Not a poorly managed charity-for-all-or-any.
This way, you keep control in an environment which evermore looks like you just have to roll over.
Changing their minds having agreed to the above is a good reason to consider keeping their holding fee. For being pi**ed about, basically.
It happens. Many applicants keep looking pending refs. It has never been acceptable to me that people say ‘We don’t want your place now.’
Of course, the excuses are usually more grandiose than that. Often health related to pull the strings. Having expressed your sympathies just incase it’s actually the truth, no matter.
It’s in writing. Its your call.
Where I have felt messed about or in any way lied to, they always forfeited the holding fee. I doubt they messed the next landlord about should they be similarly cautious. And transparent.
The way I played it, I retained the ability to exercise discretion and either return or retain their holding fee.
This strategy also firms up intent from the outset. A fly by night mess you about multi applicant would run a mile.
- A slight aside, in my view and experience having OpenRent do everything including taking deposit, AST., creates potential for issues where none existed. I used OR as a simple advertising portal for applicants, found their referencing service to be efficient but didn’t ever fancy the constraints of their deposit taking and my AST is much more comprehensive.
It also introduces a third party who can muscle in as they see fit.
This would never work for me.
Take care about over-delegating. (No disrespect intended, OpenRent.)
Good luck, whatever!
Peter
