Upfront from Overseas Tenants

[B113]

Hi all, my family will relocate to UK later this summer, and my potential landlord is asking for a full upfront of 1 year to be paid upon signing the TA. Is it a usual practice? And is Openrent an authorized agent to receive and hold my 5 weeks rental deposit and 1 yr upfront before releasing the money to the Landlord? Thanks!

[stt106]

I think it’s normal as it would be hard to do reference checks but I am new so will let others chimp in .

[Chris]

Most landlords will perform affordability and reference checks before agreeing to let. With tenants coming from overseas this is not possible so many will insist on 6/12 months rent upfront. This is common practice especially as it is a landlords market in the UK.

Usual checks are 6 years financial history. A utility bill or council tax statement showing your name and current address. Reference from previous landlord. Your name on the electoral role etc. These checks are impossible to perform on an overseas candidate.

The only thing you may be able to offer is a bank statement showing a decent amount of savings and reference from an employer if you are returning to work or some other type of income. There’s a shortage of rental property in the UK so it won’t be easy, especially coming from abroad.

[Graham]

its an opening position. you can try to negotiate to 6 months which seems the standard. but the market is tight, but try putting him to the test and go back with 6 months. OPenrent don’t hold deposits, there is a specialist custodian for deposits in the UK but OR will guide you through process and are to be trusted, they are 100% legit. It is always good to have an agent involved in this kind of situation so you have a third party you can sue if things go wrong, the LL might disappear but OR won’t. its the same reason it is good to buy things on credit cards, you can always drag the credit card company into any dispute and they have big pockets.

[Chris]

Additionally a landlord may ask for a guarantor.