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?

People lose jobs all the time and it's what, 8 weeks to evict a tenant?

It takes months to evict a tenant, not just a few weeks.

YABU, redundancy could happen to anyone.

Your not unreasonable at all it’s your property and you can rent it out to who you like.

I think yabu as the point if people being furloughed and the reason it has been extended to october is exactly so less people get made redundant.

poor sods, as if people havent got enough problems without attitudes like this, anyone could come into money difficulties at any time.

of*

I doubt you would get rent guarantee insurance on a furloughed prospective tenant. Different if they were an existing tenant and then were furloughed. Check it out with National Landlords Association.

You are not being unreasonable at all! You have to protect yourself! If you did want to go ahead you could consider things like:

1. Asking for a guarantor
2. Asking for a larger deposit 3 Landlords insurance to cover missed rent payments

You're obviously going to act in your own interests, naive for anyone to expect otherwise, so the question is whether you think you can do better or not. Desirability of property, area, price range etc need to be factored in, as well as the general economic situation.

OP - there is some flex depending on what industry but if I had a choice, I wouldn't let to a furloughed worker at the moment.

I have two properties - one has been furloughed and is on half rent since 20th March. The other is still paying full rent (which I am amazed about because they are a driver).

It is very sad possibility that some furloughed workers will be made redundant in the near future.

You don't have a crystal ball, but someone who is looking to rent now and HASN'T got an employment gap is obviously a better bet.

YANBU. In fact, you are being sensible and protecting your own interests.

I am furloughed from my job in one of the industries which has been decimated by covid. Today’s announcement on quarantine will only make things worse for my employer and our industry. I have no idea if I will still have a job in three months time, so I am in no position to sign up to a contract which I may not be in a position to honour.

OP- I dont think mumsnet can answer the question. You need to do your own risk assessment with the information that you have about the tenants.

Wow. People really are utter arseholes.

this is MN and many have the Guardian stuffed up their arses - lots of playground jealousy. They also believe the Shelter propaganda that landlords can evict on a whim (whatever that means) and at a moment's notice.

if this is England, tenants can move in and immediately stop paying and at the moment there will be NOTHING you can do about that. New rules are planned which will mean it is '3 strikes' for non payers, section 8 is already very easily circumvented. When section 21 goes renting can become free housing.

not saying this couple are any greater risk than others, but unless you have rent guarantee insurance that will actually pay out, be very careful.

@LetTheSecretOut landlords insurance ask if new tenant is working so taking on a new tenant on under these circumstances she would have to ask insurer & knowing them....
@KKSlider guarantors are not always a reliable backup as people think
I am surprised that this couple is moving under the circumstances -I would be interested in the timing & housing benefit rarely pays the full amount & its delayed & now its linked to UC it can be cut off suddenly
(4 weeks versus 1 month estimate of salary a nightmare for the recipient & local housing payment has been frozen - its estimated on the cost of the lowest third in an area which can include 2 bed flats with second room too small for 2 children or rural no transport/facilities area)

YANBU. It's your property. Wouldn't you normally weigh up employment/finance issues anyway?

But now this is yet another thing that makes me think many furloughed employees are in for a big shock in one way or another soon enough. Including people who've looked down their noses and made derogatory or 'Im better than you' style commentary about benefit claimants etc in the past

@turnthebiglightoff - why do you say that?

Say you have something very valuable that you are still paying for - maybe a car on finance. You could sublet out to someone on the agreement they pay you £400 a month for it.

Would you loan it to someone still in a full pay job or one who's industry is at risk?

I wouldn't let to someone furloughed, unless l had a letter from their employer confirming that their job whas safe and the return date, (and ensuring it is in an industry which is reasonably secure)

At the moment it will take a very long time to evict non paying tenants as despite the 3 month delay allowed, courts have a huge backlog so you would probably be looking at 6 months without rent should they default....if you cannot afford this you need a safer tenant.

Could you ask them to find a guarantor until they're off furlough? Or ask for a larger deposit? Would the other half of the couple be able to cover the rent on their own (or their income + any benefits the other one might claim)?

I can understand your position but it must be awful trying to find somewhere to live if you're furloughed. If you could find a way to balance the risk, it would be a compassionate thing to do.

Anyone saying yabu has obviously never suffered a none paying tenant. If you rely on the rent as income or to pay a mortgage i would definately be concerned

Also you can no longer take a large deposit its 5 weeks maximum. However you could ask for 3 months upfront

Of course you aren't being unreasonable, it's your property.

second NRLA (all LL should join an organisation like this - it advises & educates about law & promotes being a decent ll & working with tenants
Good rule - communication between you & tenant & trying to be fair to both sides & taking care of property but respecting the property as a tenants home

You are aware we are in the middle of a pandemic so anyone could be furloughed at any time .
I don't think some people quite understand yet if this pandemic has not effected you yet it will .
Do what you need to do but if it was me I'd rather risk having some rent now or none at all for a long time because if you choose to pick non furloughed employees , with 8 million furloughed it may not be easy .

Why don’t you check if you can get rent guarantee insurance for furloughed people? If you can’t, I wouldn’t take the risk. But if the insurers are happy, I wouldn’t refuse them. Mine was a tiny addition to the premium and pays out immediately there’s a rent default. The only stipulation (pre-covid) was that the tenants had passed the requisite income checks etc. Obviously the underwriters may have more stringent stipulations currently, but at least you will have a clear conscience refusing them.

(Not that I think you have any reason to have an unclear conscience! You just seem a little worried about doing the ‘right’ thing)

This is not unreasonable to think someone still furloughed has a higher chance of redundancy. The op is not renting as some form of charitable act, it’s a business.

I think I’d be looking for more info. What industry what they did, how long they’d been with their employer etc, and make a more balanced decision based on that.