A happy ending Stress avoided

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.

Landlords on your toes & get it right

Minimize Risk The great thing about the UK is the capability of checking out someone we want to do business with before committing.

Landlords its time to get on the ball and ensure your rental agent is working for you. After all its you who pays the fee not the incoming tenant

I know that you maybe excited that your agent has found you a tenant and was quick in doing so. Be aware that in this market its far easier to find a tenant the key is finding the right tenant.

However Agents do not always provide you with the perfect tenant. So my tip for today is insist that the agent provides you with all references. Do not be fobbed off with excuses for not getting the references you expect.

Checks for a tenant should include bank reference, credit check, previous Landlord, job reference or for self employed an accountants reference. An agent can apply for these manually or use a vetting agency to obtain the checks. We tend to use the latter as they are proficient in obtaining all information and often do so within 24 to 48 hours a plus in getting a deal in the bag before your prospective tenant is lured away by other agencies.

Recently our Poole lettings office has been quite frustrated at a spate of applicants who we have turned away due to negative checks and who simply go to another agency and are granted a tenancy. Interestingly most of these tenants were intro only arrangements where the agent was paid on completion and walked away

Often Tailor Made find out about the rogue tenant that we turned away a few months later when a Landlord comes to us for advice to resolve the problems

Many agencies have commission staff who are finding it tough in the current crisis and push through applicants who may not stack up. The most recent case I am aware of the previous Landlord had informed us that Mr H had trashed the house and left without paying the last 2 months. Yet the other agents Landlord who accepted them had not been provided with a previous Landlord reference. Agents may tell you that previous Landlords reference isnt worth having as they may be keen to get rid of a horror Tenant and so provide a positive reference. My experience shows very few owners will do this so its worth having a Landlord reference.

So there you have it the way forward is to ask your agent to show you copies of the checks that have been made and then insist on obtaining any that you feel should be provided make sure you get the complete picture.

Be nosey be safe