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?

YABU. Anyone could be made redundant.

I don't k ow why you're asking the question. You run a business. You assess the risk and decide whether to take on a customer or not, end of.

Some businesses are prepared more risks, others don't. Of course, there could be the best tenants and by turning them down, you could end up getting no other offer for a couple of months and lose rental.

There's no reasonable or not on this matter, it's a personal decision based on your risk assessment.

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
sounds like you've left yourself in a very precarious position!

For me it would depend on what industry they were in – some people have been furloughed but will definitely have jobs to return to. Some people may not.

There's no reasonable or not on this matter, it's a personal decision based on your risk assessment.

Yes, exactly. OP needs to think critically about what the level of risk is and, put bluntly, whether she's likely to be able to get tenants she would regard as more reliable or not.

People saying 'anyone could be made redundant' seem to be deliberately missing the point in the name of landlord bashing.

There's a fairly obvious difference to anyone with common sense between:

1. Renting to someone with a stable income who might happen to be made redundant later down the line

And

1. Renting to someone who has currently been furloughed, during a national crisis, when there's a recession on the cards and redundancies are likely in some industries after furlough ends

The risks aren't the same.

I'm pleased to see many seem to echo my concerns. The property has only been on the market for 24 hrs and this is first offer, lots of others booked in for viewings. EA is obviously pushing to 'do the deal' today but I don't want to rush into accepting a tenant that knowingly might have serious financial problems in the near future. Think I'll sit on it for the weekend and see what, if any other offers we get.

Oh and for those asking prospective tenant is in website marketing. Not sure whether this makes a difference or not?

@EinsteinaGogo I am furloughed and also earning a full wage. I'm not at any risk of redundancy, and am a renter. The thought of landlords turning someone away because they may be earning 20% less (which you don't know that answer) leaves me with a really bitter taste in my mouth, that people are willing to behave like an arsehole.

YANBU unless they can supply a guarantor?

You can rent to whomever you choose.
You are being unreasonable if you haven't taken out insurance to cover inability to pay rent.

Nobody is immune from redundancy

I assume those saying YABU are renters, DH rents out his former home, I have lost all my work, not all landlords bought to let or can afford to go without rent.

Nobody is immune from redundancy

Well no, but clearly the point is those furloughed are at a much higher risk.

@turnthebiglightoff - unfortunately almost anyone is at risk of redundancy, and whilst no one has a crystal ball, if you're in an industry that has furloughed staff, maybe more so.

I think usually you would be reasonable if there was no guarantee of an income, however at the moment, there are so many people in this situation that it's unreasonable of you and rather cold-hearted. Furloughed people still need places to live and they most often don't qualify for council housing. Could you ask for a guarantor and explain why?

Why are they currently looking to move? We are wanting to move desperately but are waiting to see what happens with work as things start to open up again.

It could be that they haven't been able to pay rent on their current property and are having to leave as a result.

YANBU.
It is incredibly difficult for the landlord now if the tenant defaults/I would rather have a void (bitter experience of tenant who stopped paying and the system totally biased in favour of the tenant and landlords treated as Rachmaninov-like scum.

I wouldn't rent to them, not without a guarantor or something. Wait and see what other offers you get and pick the best application for your security.

EA will push you because as soon S they have the commission the risk is all yours. You are not a public service -be cautious. Rent only to those who are working on a sector not likely to be impacted. I always rented to public service because they will always have their snouts in the trough.

And avoid those who need guarantors. The onus would be n YOU to sue the guarantor -costly, stressful and time-consuming even if you do eventually get the money from them.

If you're in the precarious position of needing every penny of a reliable rent to pay your mortgage on it then of course you need to vet your potential tenants for revenue concerns (even if you aren't tbf!). Its tough as you may be sympathetic but with your practical head on you need to look after yourself and your own financial situation. It's easy to be virtuous and moralistic if you're not the one relying on the rental income to pay the emotionless bank.

If this was my mortgaged flat I'd probably try to find the most secure renters possible based on their current circumstances.

Unless the guarantor is a university/they can be relied on as students cannot graduate if they owe the university money.

Think somethings gone awry with your post vetting process @mnhq - unless you are really telling people to "fuck you from our talk guidelines" 😂!