A happy Landlord story
A developer shows us a detached 4 bedroom house which he intends buying demolishing and building 3 homes on it. The plans have not been drawn up so he figures he has 12 months before he will be ready to build. The purchase goes through and because there is a crack on the building I tell the owner to maintain the building insurance with the same insurer as the previous owner and to get his lawyer to obtain a copy of previous policy. Tailor Made Lettings are asked to find a tenant for 9 month rental.
We advertise and soon have an applicant who wants to rent it but does not want to give references so offers 6 months advance rental for a 6 month contract. He has just sold a house and will get his lawyer to send the 6 months rent and deposit on his completion day. I don’t get a great feeling about the applicant and therefore make a few of my own discreet inquiries and am advised by several people to be wary.
I arrange a meeting with the owner and explain that I have reservations. The owner says that as there is 6 months upfront he is not too bothered and we should proceed anyway.
I suggest that we tell the applicant that the owner has a bank insisting on Rent Guarantee/Legal Assistance Insurance and to get this cover he must have a credit check done as well as an Employers reference. The applicant is disgruntled but agrees to fill in the application form. When he first met us he stated he was a self employed car dealer yet the application form showed he was in fact employed as a jewellery buyer. Again a few discreet inquiries establish his employment is in fact his parent business.
I again meet with the Landlord and update him on the situation explaining that I was not certain that he worked where he said he did and my concern was that once his advanced rental was used up he would not pay and would not vacate. The Landlord advised he would take that chance and I responded that if the vetting passed the Insurers checks then we should take the rent Guarantee/Legal assistance cover.
The 6 months expired and the tenant asked to stay longer the owner agreed another 4 months as long as the advanced rental was paid over. No rent came and the tenant avoided all demands and continued to reside in the house. Two months on the tenant reported a blocked drain and the landlord refused to send anyone. I spoke to the Landlord and advised him to get the drains checked as there were a number of trees on the site and if there had been a collapse it maybe recoverable under his insurance because easily as we had maintained cover with the same insurer. At that point a claim was submitted and the same day an arrears claim was made to the Rent Guarantee insurers.
Over the next 3 months the mains drain into the property was completely replaced at the cost of the building insurer and the tenant was evicted under the legal expenses cover and the owner received a cheque for the outstanding rent less the policy excess.
In this example Property Management experience has been key in a happy ending. The owner obtained planning for two homes within a few weeks of obtaining possession.
