Self employed with no proof - why isn't 6 month rent in advance acceptable?

There have been legal challenges regarding the licence issue. However, there are other forms of tenancy which would not give the security of an assured shorthold tenancy and which could exist in an Airbnb e.g. holiday lettings which would be excluded from the Housing Act 1988 see 9 here Housing Act 1988

An issue is whether the occupier has a main residence elsewhere.

You don’t have to sign a contract for it to be a tenancy- a tenancy can be agreed orally.

It wasn’t agreed orally, it’s all done online.

That wouldn’t make any difference legally, I don’t think - the courts will always look to the reality of the situation.

There was an agreement to sign with one of the places I stayed in and does indeed say it’s a “serviced accommodation”. So what really constitutes serviced? I read here it says:

“Like any hotel, you’ll need to clean the rooms and change the linens every time your guests leave. For longer stays, you could have a cleaner in and change the linen on a regular basis while your long-term short-term guests are there.”

But what really constitutes a ‘longer stay’? It was a three week stay…but they didn’t clean our rooms at all. It says you ‘could have a cleaner’…doesn’t seem its that strict?

Yes it was Contract it was a typo sorry,

I am just explaining why most Landlords would prefer a guarantor rather than six months rent upfront, It doesn’t matter if you are self employed or working for a company as I am just referring to the six months rent upfront and why some Landlords are put off by this and by paying six months upfront doesn’t really help your situation as in the past I have found you are just pushing back a potential problem six months down the line.

Am not saying you I am just talking about paying six months rent upfront, I feel it doesn’t matter as Landlords would rather the guarantor in place.

Good Luck with your property search.

OK a guarantor, but self employed with no guarantor and six months rent up front vs employed with no guarantor and one months rent up front, would seem to yield a winner for the self employed. Your case where you lost £6000 with £3000 rent paid would have been a £6000 loss with only £500 paid…or otherwise less than six month’s rent.

Really doesn’t explain the fear of all self employed. I came across a listing on open rent today that literally says “No suitable for tenants with pets, UC, unemployed or self employed people”…

I have been self employed for 50 years so probably “beat” most people on this site. The rental market has changed in last 10 years S/E need 3 years accounts for rental or mortgage . S/E IS riskier than employed for start ups especially. Employment is high at the moment, if it dips then S/.E will as well and be worse off Tenants have more rights than landlords and yet the landlord OWNS the property !! I can see ALL tenants S/E or not ,will be needing a guarantor the way things are going. Up to each landlord to make his own requirements for tenants . If the tenant does not like it , Tough. Move on

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The importance of the service/cleaning would arise if the AirBnB were your only residence/your main residence. Under those circumstances, if cleaning were not provided and you were not living in the landlord’s own home, then there could be a possibility of a tenancy.arising.

The length of stay isn’t really an issue legally, unless it were a holiday let which was too long to be a holiday really - for example over eight months.

Bingo!……….

Shouldnt but it does, as the law dictates.

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Excellent answer and well put!! at least you can understand how the rental market and risk factor is going!!

Ni1 - I am not talking about the self employed !! I am talking about paying 6 months rent upfront doesn’t help any tenant if they don’t have the required guarantor.

I will take on Universal Credit tenants with pets and self employed and working tenants, however I require a guarantor with all, as a working tenant could also lose their job etc etc etc…

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When the tenancy ends on paper has no bearing if the tenant decides not to move out.

Lengthy eviction processes follow nothing any landlord can do to speed this up.

However, you are correct that employed/self employed it makes no difference if that tenant decides to stay put.

As someone said if there’s one person with a proven track record and one without, most would err on what would appear to be the safer bet.

But you will find somewhere, many sort after highly skilled self employed people out there who will never be without work.

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Credit references are just computers ticking boxes.
Can you provide references from abroad. Give a reasonable plausible account?
A landlord takes a risk with EVERY tenant.
Can pay does not mean will pay so its all down to trust, character assessment.
You dont want a timid landlord.
I’ve taken rent in advance, so will another. Good luck, you will find a sensible landlord.

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Irrespective of any shorter term tenancy agreement, an AST could be written for one day, the tenant has a legal right of occupancy for six months and so that would be normally the minimum period for whch a tenancy is granted and, in your case which would need to be prepaid. If I was prepared to let for six months, I would be looking for you to have reserves to cover all utilities and living expenses given your work status, that’s as a minimum. Many landlords will have incurred voids, reduced rents, and a host of other “Covid” related problems and costs and will be looking for stability and thus typically longer term lets.

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Been there, beware this is a classic ploy, to shield their dubious past.
Had an applicant who stated this, turns out he was a con man.

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You can stipulate a 6 month tenancy rather than a 12 month yourself, it’s not the law. It may continue slightly after the end but it stands to reason a 6 month tenancy will not continue anywhere near as long as a 12 month one…

That’s where the problem lies, or at least most of the problem., but the law doesn’t help either.

Why? If someone pays month by month then they all the power! They can refuse to pay rent at any time for any thing, check this forum, it’s full of people withholding rent if they have the slightest problem. They also by definition have not paid for the product they purchased. Imagine any other thing you buy, like a car, which is more risky - to pay for the car in full or to pay month by month? There’s always the risk they’ll stop paying and they can threaten to stop paying at any point…

Let’s say I’m not talking about self employed vs employed, I’m talking rather about 6 months vs paying month by month which was your original argument, that paying six month’s rent was a problem in itself.

Since you said ‘even if you do a 6 month tenancy’ we know that you didn’t do a six month tenancy…THAT’S why you took a year and a half to get the tenants out. It would’ve have obviously taken way less time if the tenancy was half that length…

Otherwise there wouldn’t be any point in setting lengths for tenancy agreements in the first place…

Vast majority of experienced landlords let on a 6 month AST, by law it then switches to a statutory periodic tenancy. The tenant has rights to stay. Incorrect re stands to reason 6 month tenancy will not continue, substantial number if not the majority of tenancies are in fact periodic (either statutory or contractual).

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Ni1 - You are completely missing my point all together…

What I am saying is I require guarantors no matter what, You can be a working tenant, you can be unemployed, You can pay six months rent upfront! it doesn’t matter you still need the guarantor. Just because you can pay six months rent upfront this doesn’t mean anything because after the six months you are back to paying month to month anyway and even if you paid another six months then there is damage to consider so i always take guarantors then if there are rent arrears or damages I just claim this back from the guarantor.

By having the guarantor the Landlord has the power because if the tenant decides not to pay the Landlord can go after the guarantor.

What I am saying is six months rent doesn’t make any difference as the money eventually runs out after six months but with a guarantor they are liable until the tenant moves out even if the contract was for six months they are liable until the tenant moves out.

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stephen he has his own agenda you are wasteing your time replying