X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    Which Tenants would you choose?

    I own a small unfurnished 2 bed terrace house in a London suburb. Good schools and green areas nearby. I've had three offers on it. Market rent is £1500-1600/mth, agent commission is 7.5%.

    1 - Single male, early 30s, 10yrs working for successful (semi known) family business, willing to pay 1yr in advance. Recently sold his own home. Has a dog. £1456/mth after commission

    2 - Couple, young child, just moved back from Saudi, can pay 6mths in advance (first or last(5+1). Need and have guarantor. Previously lived on the same road. £1456/mth after commission

    3 - (Non EA) Professional couple, 3mth old child, no advance payment but more typical family setup. Rent is about 6% less as they want to start the tenancy a month later. £1500/mth


    I worry about 2 as his single income won't be enough for them to live on. I don't want to get involved with LHA if I can help it. There is a guarantor however who can satisfy criteria for rent guarantee insurance.


    I'm erring towards 1 or 3. 1 because he is willing to pay upfront. 2 because they're a typical tenant. There is £1074 between 1 and 3.

    Which would you go for?
    0
    0
    3 All day long, providing they reference to your liking and the month delay does not effect you too badly.

    My reasons

    1 - just sold his house so not stable, yes he wants to pay a year in advance so has the money but that doesn't mean he is going to be a good tenant or in 6 months time he won't change his mind. Has he rented before? Is he used to just living in his own house? Will he be a bit of a PITA type of tenant? Has a dog, they do not bother me if its a small dog but you might feel differently to me.

    2 - Not enough money to pay the rent and live comfortably, I'm out.

    3 - new parents so will be craving stability. Both professional tenants. If the void doesn't bother you too much I would go here.

    As a caveat I am not a vastly experienced landlord like some on here so others may have a different angle but I thought it would be a fun exercise for my own education and to see if others agree with me!
    0
    0
    I agree with lee.
    no 1) unlikely to put down roots & may buy a house in 12 months or move on a whim.
    2) affordability isn't guaranteed.
    3) everytime
    0
    0
    I would probably go for No. 1.

    If he pays 12 month rents in advance he is securing the property for that time.

    If he decides to move on before one year, it would be at your discretion to refund pro rata.

    He will create less wear and tear on the property than a family.

    If you cannot choose between 1 and 3, then I would suggest that you rely on your "gut instinct". It will serve you well.

    Hopefully, you have already asked my 15 questions every landlord should ask prospective tenants? Smile
    0
    0
    Only 3 prospective tenants!!
    It isn't just the money as I guess you realize. Also you are trying to make a judgement on limited second hand information.
    I will repeat one of my sayings when choosing a tenant "it isn't what they tell you, it's what they don't tell you".
    Hope this helps
    0
    0
    Assuming after a 30 minute interview they all passed the personality test to your satisfaction I would lean towards number 1 . You get £17472 up front to put down on another BTL

    You could buy an 85K property on an 80% LTV cashflowing positively at £250 pcm. Thats 3K pa extra rental income

    Say property prices go up 5% in that year you get an extra £4250.

    So thats a £7,250 gain over the other two candidates. (And thats before any additional gain if you bought it BMV and added value to it )

    No contest - sign up No 1
    .
    0
    0

    Jonathan Clarke. http://www.buytoletmk.com


    Correct me if I am wrong; but my understanding is that any rent taken in advance more than 1 month's worth makes S21 problematic and causes deposit protection issues!!??
    So for me I refuse any large rent advance and will ONLY accept 1 months rent in advance and 2 months rent as deposit.............................................................PLUS RGI on the tenant or their guarantor.
    All on a standard 6 month AST proceeding onto an SPT unless the tenant wishes to have another 6 month AST.
    Covers all bases.
    The tenant that can satisfy that covers EVERYTHING and I'd take them on!!
    Also include a rent increase clause annually to save bothering with S13.
    Not many tenants can meet my criteria........................................................................​funny that!!??
    0
    0
    No.1 - single, will be at work all day and you will probably have less hassle and minimal maintenance issues.
    0
    0
    Sorry to be in any way rude, but it's not exactly Rocket Science, why would you in any way...... need to even ask for any help making this decision, when one of them wants to pay 1 year in advance. I would say you must be someone who struggles to make decisions, and I mean this in the nicest possible way!
    Shy
    0
    0
    (27-10-2014 11:33 AM)F1_Fan Wrote:  Sorry to be in any way rude, but it's not exactly Rocket Science, why would you in any way...... need to even ask for any help making this decision, when one of them wants to pay 1 year in advance. I would say you must be someone who struggles to make decisions, and I mean this in the nicest possible way!
    Shy

    That would be me. In my defence paying in advance isn't something I've encountered before. As dsns mentioned there are various legal concerns also.
    0
    0
    I year in advance? Call me a suspicious old fuddy duddy if you will, but never discount the possibility that someone wants to use your house as a cannabis factory! Check out the house sale story and proceed with caution if you want to go down this route.
    0
    0

    __________________________________________________________________

    BTL's, residential mortgages, bridging, life cover and estate planning  

    http://www.hdconsultants.net        

    For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.

    Telephone: 07751042485      01206 654444