Housing market
- Thread starter matt j
- Start date
mandryka
pfm Member
It may be better for the landlord than the current situation under s8. I’ve never used it so I’m not totally clear, but I think at the moment for possession citing arrears as grounds the tenant needs to owe 2 months at the time of the hearing. This means that they can play the system ad infinitum, by just paying off the debt down to one month arrears before the each hearing.
The obvious point is to find a tenant who won’t get into arrears because they can easily afford the market rent and they’re scared of a CCJ. This is doable in London, harder in Manchester - the two places where I have some experience.
I am pleased about the current wording for getting possession to sell, and to live in the property. This is better for the landlord than the current section 8 situation.
The obvious point is to find a tenant who won’t get into arrears because they can easily afford the market rent and they’re scared of a CCJ. This is doable in London, harder in Manchester - the two places where I have some experience.
I am pleased about the current wording for getting possession to sell, and to live in the property. This is better for the landlord than the current section 8 situation.
mandryka
pfm Member
You need to be sure that they have a reliable income sufficient to pay the rent after the first year. And that they look like they want a good credit rating. Or you could be landed with a tenant who is a bad payer.
Some guy from Nottingham wanted to move to Manchester, and offered me the asking rent a year in advance for one of mine. On investigation, he was a barman with no regular employment. I refused, and I think I was right.
Gingerbeard
Ayup Me Duck
Yeah, your property will remain tenantless! Who in their right mind is going to pay 12 months rent up-front...
Mike Reed
pfm Member
Bob McC
Living the life of Riley
You’d be surprised.
mandryka
pfm Member
There used to be a fair bit of it about for the right properties from foreign students from wealthy families. But I wouldn’t ask for it myself, the best tenants will be put off.
Cav
pfm Member
Is 12 months rent in advance that something you regularly ask for and achieve?
mandryka
pfm Member
68% of letting agents report increase in notices to sell due to temporary measures in Scotland
https://www.propertymark.co.uk/resource/the-impact-of-the-cost-of-living-regulations.html
Around 83% of those that Propertymark surveyed stated that they would be inclined to increase rents as a result of the Act as landlords want to have reassurance that they can cover any rental loss as well as rising cost of maintenance and repairs, utilities and mortgage interest hikes.
https://www.scottishhousingnews.com...tting agents in,due to the temporary measures.
https://www.propertymark.co.uk/resource/the-impact-of-the-cost-of-living-regulations.html
Around 83% of those that Propertymark surveyed stated that they would be inclined to increase rents as a result of the Act as landlords want to have reassurance that they can cover any rental loss as well as rising cost of maintenance and repairs, utilities and mortgage interest hikes.
https://www.scottishhousingnews.com...tting agents in,due to the temporary measures.
Southeastern
She called me baby, like an old romantic
The 12 months up front is becoming common now, especially in London, and the unscrupulous landlords accept it and prefer it , meaning its becoming the norm.
So basically, if you don't have the £££ to offer up front, then you're screwed even more while already being screwed by baby boom generations and landlords.
Its a terrible practice that shouldn't be allowed.
So basically, if you don't have the £££ to offer up front, then you're screwed even more while already being screwed by baby boom generations and landlords.
Its a terrible practice that shouldn't be allowed.
Last time I rented I paid 6 months up front. I was between jobs and it was the only way to pass the credit check. Obviously once they get those funds they have zero risk. After that I went month-month for the next 4 years.
Ponty
pfm Member
As the govt continues to swing the pendulum towards tenants, landlords will need to mitigate against the risk of someone playing games. If I were a tenant, I’d also want to know my landlord wasn’t at risk from going bust as much as a landlord wants to know a tenant will pay the rent. There are plenty of very wealthy / cash rich tenants around. I’ve had 6 months in advance several times from professional folk relocating from overseas who don’t yet have a complete UK credit rating for example. I can’t see 12 months being an issue. Others offer rent in advance when there is competition for a property. Many choose to rent for convenience and lack of hassle, particularly if they are based somewhere for a relatively short period, not because they can’t afford to buy. Without exception, tenants I’ve had could easily buy the property they were renting (and some) but choose not to.
Southeastern
She called me baby, like an old romantic
Part of the problem, not the solution, but you don't care about the solution really do you? Happy to line your pockets while others sleep rough.
Ponty
pfm Member
Precisely. In such uncertain times, an offer which de risks is valuable and worth something.
mandryka
pfm Member
It isn't true that there's no risk for the owner of the property when a tenant pays 6 months in advance, because at the end of the six months you may have an unreliable payer to deal with.
Another consideration is where the cash came from. If the tenant uses the property to grow cannabis, then that has serious insurance consequences for the owner of the house. If it came from the sale of drugs, or from prostitution, it can upset the neighbours, and the owner may want to avoid that.
(People from the council sweeping leaves in the snow outside my house at the moment -- it reminds me of a scene in Rocco and His Brothers. I'm suddenly in an Italian realist filmset!)
Ponty
pfm Member
Why is it a problem if tenants are willing and able to pay up front? Or do you have an issue that some have relocated from overseas and don’t have a UK credit rating? The problem is govt meddling. Hardly lining pockets, yield is sub 3% with a chance of 20% erosion of capital over the next year or so. Fancy your chances as it’s such easy money?
Southeastern
She called me baby, like an old romantic
Because it penalises more than it promotes. It is unethical, especially during a prolonged housing crisis, and has weighed the system far too much into an imbalance between all those on the rental market, not just the privileged. Simple put, it's just another form of prejudice.
If you aren't lining your pockets from it, you wouldn't be doing it, so the easy money argument doesn't wash in the slightest, well it certainly washes, but still comes out dirty.
Ponty
pfm Member
Maybe not allow my overseas tenant folk in as they’re taking up housing? Sure, I’m in for the long haul so short term market fluctuations don’t bother me, particularly with govt driving out landlords, means less supply. Look at the current situation in Scotland (see post above), a total mess through govt meddling. Bottom line is there’s too much demand and not enough supply in places where people want to live. Always been the case, always will be the case.