Would you rent to us?

Landlord Discussion
1

I’ve not rented for 20 years and don’t fit into the typical tenant profile, so I’m concerned that any potential LL will see my wife and I as risky.

We’ve recently sold our property and plan to move into a rental, looking at around £1800/month. We’ll have £200k+ from the sale, though I’m being told that we’ll need to be able to provide a guarantor. We need to provide references though as I’m a company director these won’t be able to come from a landlord or my employer. Also, as a director I tend to pay myself in dividends, with only a small regular monthly salary. What could I do to alleviate any fears from a LL?

2

for me it would depend what sort of a business you run and are you a sole/ self employed trader?

3

The company category is tour operator, and it’s just the 2 of us on the payroll.

4

So you own it like a self employed?

5

I guess the landlord’s concern will be what happens if the business falls off a cliff, how would you be able to pay rent. If you are able to get a guarantor, that would be helpful. It’s a bit of a tricky one, but I think if you communicate with any prospective landlords about how you’re an experienced home owner so can look after a property well etc, and that you can demonstrate savings and some consistency in earnings from the business, and that you’re willing to provide any documentation to support that, you should be able to alleviate those concerns. Good luck.

6

Would the £200k that we have from our property sale alleviate any concerns about the rent being paid if the business went bust, or is that not usually taken into consideration?

7

Well it’s a limited company (so technically we’re employees of it) but we own all the shares in the company so it’s effectively like being self-employed.

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8

I knew would ask about the 200k. I have been s/e for 52 years and a landlord for about 40 . the big bucks do not influence me . I want to see accounts for at least 3 years , as I know the pitfalls of running a business. Ups and downs over the years. No doubt some landlords will see £££££ if you offer 6 months up front ,so you have a chance

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9

I would not necessarily reject someone if they had £200k in the bank, but why do you want to rent? Id be concerned that the tenancy wouldnt last when you saw the rate at which you were burning through your savings.

10

Provable regular income wins over savings. Savings money could disappear in a flash.

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11

Also where do you run the business from would you be wanting to.run it from.the rental? Or do you have premises

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12

I require 3years accounts and bank statements, I knew someone who had 5 mill in a bank account unfortunately he could only access £250 per week ! And trying to get hold of it would be a mare

13

Would it be a day mare or a night mare?

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14

or perhaps be an old mare ?

15

My concern would be how long you would be wanting to stay - ie will I have to go through tenant find again in 6 months when you’ve found somewhere to buy?

I am less concerned about the self employment/limited company - after all, you are probably more likely to be made redundant then to lose your business if it’s well established. But then I’m an accountant and understand these things! I would probably want copies of your company accounts and your SA302 equivalents.