Would you rent to someone with an IVA?

[WreninaDarkNook]

If they have four years left to pay it off?

So she is on housing benefit too?

No chance. There is huge competition in the rental market and any landlord is going to choose the person most likely to pay the rent on time every month. And that's not the person who's proven they have been financially irresponsible in the past.

This is what I was going to say. I pay a lot of money for comprehensive landlord insurance so I couldn't take someone who had an IVA.

I would also not be covered by insurance if I took someone on who received housing benefit

if they apply once moved in that isn’t an issue

the market allows me to choose what tenants I have and that choice is down to who can pay the rent and had a steady income

I know for many landlords are lumped as nasty greedy people taking advantage of the poor but many of us are not. I’m a good and fair landlord who gets work done asap if something needs doing and my landlords have been this way too and I have rented for years

it’s a business (for myself not profitable year to year) not a charity as my agreement is with my mortgage company

No. Think I am pretty much decided that this needs to be a self-preservation decision even though I feel quite sorry for her and she does seem a nice woman.

No, she works fulltime and wants to move closer to work. I thnk she's just on the council list for housing but not a priority.

One issue is that even if she pays the rent in full each month, if you need her to leave for other reasons such as to sell the house, she will find it very difficult to find anywhere else to go, meaning you’ll likely have the cost and time of a court based eviction.

Approach this with a business head. There is no room in it for sentimental feelings. You are not running a charity.

If she was on housing benefit I would (because if there starts to be trouble it can be paid direct), but in the circumstance where she has an IVA but isn't on housing benefit I wouldn't be covered by my insurance.

Which is a bit bonkers in some ways as anyone could end up on housing benefits and I have specific insurance allowing me tenants on benefits (my original flat has adaptions so all my tenants in there have been on HB/UC while waiting on council or HA housing.)

That’s because the council is desperate, they will wash their hands of the whole affair if she defaults on future payments.
It will be your problem not theirs.

I would ask for details and then probably would.

Absolutely not. I pay an agent so I don’t have to deal with issues like this though, as I know how much harder it would be to say no to someone directly.

But at the end of the day, it’s too much of a risk, more so since the rental changes recently.

Tricky

tech anyone you allow to rent could lose their job and not pay

an Iva means they got into debt but couldn’t pay so made an agreement to pay x amount normally for 5yrs then debt is cleared - with them paying maybe 1/3 to 1/2 of debt in total

I would want to know her salary /bank statements and list of outgoings to see if she can afford the rent

Do you have other people interested @WreninaDarkNook

No way. Seen too much over my time to take any risks or trust anyone. Plus I've seen too many people appear at first to be lovely, but then screw you over.

An IVA is there to help an individual, but as I understand it, once it is complete, remaining debts are written off. So, that means that not all the debt is actually paid, although it is cleared. Unless you want to become another creditor on the IVA, I would steer well clear.

I bet the council are willing to cough up the first month's rent - it'll save them from housing her. They are acting in their own interest, not hers. It sounds like she is someone they really should be housing.

No

Indeed, which could be £££££ quite literally.

Good point. I didn't think of that.

That is a bit bonkers really.

I don't accept people who have HB pay their rent direct-have known other landlords have real issues with that (if there's a dispute, you have to pay it back, for example)!

I wouldn’t.

I have been absolutely inundated. Which is normal to be honest-the rental market is dire unfortunately.

Some were/are a definite no. But I've interviewed a few, one of them I really liked but she'd viewed another house that she preferred which is fair enough. Of the three others I interviewed that day, this one was one I was very confident about-but she then told me about the IVA at the last minute.

I've plenty more to choose from, so going by the answers here it will be a no

Yes exactly! About the council. It put me off more, if anything!
IVA is a bit like a 'soft bankruptcy' I guess.

Yep. Been there unfortunately (only once, hopefully never again)!

Sad as it is for her

you have to protect yourself

so if have others , rent to them

Well yes, it does come under the Insolvency Umbrella and she’s told you that she got into debt helping a younger relative. This means that if there are any financial pressures on her in the future, she’s unlikely to prioritise paying rent to you over her other perceived commitments.

I would say, and this is personal opinion, that she’s incredibly financially naive to have even considered an IVA in the first place. Sounds like either her debts were too high for a DRO or she’s just seen an advert on the TV and phoned a company for debt advice instead of seeking debt advice from an independent charity.

This means that if there are any financial pressures on her in the future, she’s unlikely to prioritise paying rent to you over her other perceived commitments

No it doesn't. Plenty of people get into debt but keep up with all their essential household costs like rent, which would be the correct way to deal with things.

She could currently be a homeowner as is living with her ex partner, in that case the IVA could well be suitable.