AIBU to not accept new tenants currently on furlough?

[misstiggiwinkle]

I am letting out a small flat in London and have received an asking price offer from a couple, the main earner is currently furloughed. AIBU not to accept their offer as I am worried that they will be made redundant and then not be able to pay the rent?

YANBU. I wouldn't let out to anyone currently furloughed. I wouldn't let out a property until the rules change so that you can evict tenants too. You could have nightmare tenants who just decide not to pay their rent (whether they can afford it or not) and you wouldn't even be able to evict them.

But that could be true of any tenant, not just furloughed tenants.

At a certain point in the new tenancy transaction, the landlord has to trust that the new tenants will be decent.

I'm normally really anti-landlords. But I actually don't think YABU OP. Why would you accept someone as a tenant who doesn't have a stable income? Unless there is more to this story and the tenants are fleeing abuse etc!!

Thanks all, wow quite amazed at the very aggressive responses at the start of the thread!

I am not the 'millionaire' landlord you may assume and have a whacking great mortgage on the property that is covered by the rent. I can not afford for the rent not to be paid.

I don't want to be unfair as I am aware man at are in the furloughed position but I am nervous about protecting my income and finances. Surely that's just prudent?

An agency would probably refuse under those circumstances so you are not being unreasonable.

You could ask for a larger than normal deposit. One lady on here paid a year in advance because of her financial circumstances.

I would take them but ask for a couple months rent rather than one 👍🏻

It’s your property, you can rent it to who you want.

I wouldnt. I work for a property company and a person we rented to has done exactly this. Disappeared and is currently on furlough. We have to now start legal proceedings but its going to be a nightmare

You are not being unreasonable. It’s your property and one of the tenants is currently without a secure income. You’re entitled to turn down anyone you like.

MN is notoriously anti anyone who’s a landlord. Someone will be along shortly to suggest you let them live there fo free until they find their feet....

YABVVVVVU

What is their occupation? If in hospitality yanbu but it depends on their occupation.

I can understand why you'd be concerned and think you've had some unfair responses on here. I'd love to be sympathetic to someone's predicament, but my sensible head would not want to be left in the shit if they lose their job. It's not just the mortgage you're left paying, it's also the council tax, increased insurance whilst it's unoccupied and possibly gas/electric to maintain heat if it was winter. Although, is anyone's job really safe at the moment, furloughed or not. We're heading into a massive recession.

In last recession a friend who was an estate agent got made redundant. She retrained as accountant.

OP,
Don't take any notice of people jealous of anybody with a second property that are giving you grief. It is easy to preach from a distance. People forget that landlords have a mortgage to pay as well in most cases.

And no, I would not rent it in your shoes.

While I understand that people want to be sympathetic to people, they are forgetting that this is your business i.e. your JOB. You are entitled to rent to whoever you want. I'd be cautious too.

Definitely not. The first time I ever rented I found out it was standard practice for letting agents to check income and without a permanent job or guaranteed hours, my choice was to have someone act as guarantor in thr event that I couldn't pay, or pay 6 months up front. A bit of a pain, but completely fair. It shouldn't be the landlord's problem.

My god, they'll be expecting you to give your flat away next!!

As an ex landlord, I would say you would have to be mad to accept someone on furlough as a prospective tenant. As you rightly point out, it is high risk as many people will sadly be made redundant when the furlough period ends.

There will still be that risk regardless of who you rent to.

Many people are already aware that some landlords run a mile when the word benefit/UC is mentioned. So unless it's national news, not everyone will be honest, and this isn't dependent on CV.

If there was a rumour of losing my job in 2 months time but need housing. Am I going to mention this rumour or not, even if there might be a possibility of getting work elsewhere? Or base what I tell you on what I know now?

YANBU

More fool them for telling you.

Of course YANBU
It's your house and you need to make a prudent decision. I would only rent to people in really stable professions right now.

You can't afford for rent not be paid? Property is an investment and not all investments pay off. People lose jobs all the time and it's what, 8 weeks to evict a tenant? If two months cash flow is going to send you under it's not really a sound investment is it.

You are right to be cautious.

Were they the only people interested in the property? I'd rather rent at slightly lower rate to someone who seemed more likely not to be made redundant. I realise this seems harsh.