Once a suitable rental property has been found comes what should be the straightforward part, sorting out the tenancy agreement. Yet that is not always the case and we are hearing that some property search agents are convincing letting agents to take disabled tenants on by offering six months’ rent upfront and/or the solicitor as a guarantor.
We firmly believe this is the wrong approach as it puts the landlord in the strongest position at the expense of the tenant.
These problems can arise because most letting agents haven’t come across clients like ours who don’t pass traditional referencing checks. A big part of our job is to explain why they will still make some of the best tenants their landlords will ever have. Typically they will spend a reasonable amount of money on rent, anything from £8,000 to £13,000 a month in London and £2,000 to £4,000 a month outside the capital, but they don’t have jobs so the normal reference process doesn’t work in the sense that there is no proof of income.
https://www.plg.uk/renting-part-1-why-speed-is-of-the-essence-when-finding-a-rental-property/ https://www.plg.uk/renting-part-2-thinking-outside-the-box/
At PLG we believe that as long as the deal is referenced in the right manner, there is no need to pay six months’ rent upfront and/or for the solicitor to act as a guarantor, even in the challenging market in which we find ourselves. As discussed in our blog a couple of weeks ago on finding the right rental property (if you missed it, click the links above for Part 1 and 2), with some estate agents still furloughed and businesses operating on a skeleton staff, these are not straightforward times. It is more essential than ever that you have someone acting for you who manages the process of finding a rental property from start to finish so that the right message comes across and is not diluted.
The strength of the tenant can be demonstrated with a proof of funds letter from the client’s legal team to support the application, detailing that the relevant monies are in place for the duration of the tenancy making the tenant as secure as a landlord is likely to find especially given the current climate. There is no need for money upfront or a guarantor, with rental payments due every month just as they would be for any other tenant. As PLG has good contacts and relations with the majority of referencing companies and agents, we can ensure that this is a smooth transaction. All agents tenancy agreements differ and therefore are reviewed by a solicitor who specialises in this area, plus we carry out a further review of their Assured Shorthold Tenancy to ensure the client’s position is protected. This may include increasing the notice and vacant periods and removing any clause which may be in breach of the new tenant fee act.
We often include additional clauses to cover any adaptation works, along with a carer’s clause. For further peace of mind, we have an in-house award-winning architectural team, enabling us to progress with the initial sketches and tender process while the tenancy application is being drawn up and approved, so matters can be expediated. Can we help?
We understand better than most that the rental market is a challenge but our ability to think outside the box and find solutions, as well as ensuring the tenancy agreement is drawn up in the right way, puts our clients in the strongest position possible.
Please get in touch to find out more.