Am I wasting estate agents' time? (Any landlords here)

[Fagey]

Due to see a property today (rental)

It's a very large property.

We don't earn the minimum amount required to be accepted as tenants.

So on the face of it. It's a waste of time.

But - the reason we are viewing it is we have our own business and rent a large unit for the business. The business rent alone is more than the house we're viewing.

So we would be moving out of both our home and the business premises to move into the much bigger house to work from home. Therefore saving on bills, travel, and cutting out rents overall.

But I'm clueless if that information would be of any use to a landlord as from what I'm reading for insurance purposes they need to look at our income for the last year and base it on that.

We could as of today increase our wages to to required income. But I don't think that would help with this rental/the landlords finance check.

The other option we're considering is to release the amount and pay an entire year's rent up front.

Its an interesting concept. The minimum income is probably around a rental guarantee scheme. Would you be renting the property from the business or personally... this makes a big difference. Renting as a business is a different prospect from the landlord point of view - if property is mortgaged for example they will need additional permission.

I don't see it as a problem, as you are serious about renting the property not just going for a cheeky gander. But you do need to be honest and work with EA / landlord.

Is the building authorised for the type of business use you need? I

@LittleOwl153

Yes. Before I even booked the viewing I made sure to tell the letting agent about our plans for the business. What the business does and what rooms we'd be using for stock - what the stock is. And which rooms for the office etc. Agent said it was all fine. It's online retail so it won't be customers visiting etc.

I didn't want to be wasting anyone's time (mine or theirs) and look around somewhere that isn't going to happen.

But it was only today this minimum income struck me as could be seen as that.

Ah sorry @LittleOwl153 that post I just wrote was meant for @eurochick

I'm no LL but would you be in breach of any of their terms or conditions if you work from home? It sounds like you need a fairly decent amount of space if you're currently renting a business space, that might throw a spanner in the works.

And thanks @LittleOwl153 - sorry to tag you so much. Haha.

I will of course be very willing to work with the LL/LA a large the property is perfect in a lot of ways. And I'd hope to be there a good few years as it solves a lot of problems for us right now whilst keeping us close to family and DC schools.

@pooopypants first thing I did when my DH sent me the listing was to phone the agent and ask if it would be ok to rent to work from home.

Explained our business and they said it was no problem.

If we like it in the flesh today then I'll put together a very thorough email completely explaining the business and my plan for which rooms/buildings I wish to use for what.

@pooopypants

I'm no LL but would you be in breach of any of their terms or conditions if you work from home? It sounds like you need a fairly decent amount of space if you're currently renting a business space, that might throw a spanner in the works.

What terms and conditions? Surely the pandemic has forced many renters to wfh?

As a small private LL, I wouldn't mind in theory but I'd be ignorant of any implications and would need to check my LL insurance etc. If there are others interested, I'd probably go the easier route.

The clause restricting business use usually applies to things like starting a junk yard or a mechanic workshop in the front garden and such like. I’ve personally not had any issues working from home in the times that I’ve rented pre covid.

Why can’t the business rent the house direct? That would circumvent the whole income thing and save you drawing funds just for this purpose. You’d likely have to show 6 months bank statements as proof of income. And I’d always offer 6 months as opposed to 12. The cash in your account will be working harder ie buying more stock etc than if you paid it to your LL.

My tenants are not allowed to run a business from the property

As I am not allowed to stated in my mortgage

Permission can be asked and would often I’m sure be granted if sensible and not cause issues for neighbours (I do not have a but to let mortgage but have permission to rent my property from my mortgage company)

It would then impact insurance

I would make sure that landlord is absolutist and you have it in writing that they are aware and agree that you can run your business for the property

Some estate agents use independent vetting agencies and their criteria is quite rigid, having said that a landlord can override a failed application if they can see the tenant is good for the rent.

That is meant to say make sure your landlord is absolutely in agreement with your plans and have that in writing

WFH and running a business from home is not the same thing ....

@Jeremyironseverything

As a small private LL, I wouldn't mind in theory but I'd be ignorant of any implications and would need to check my LL insurance etc. If there are others interested, I'd probably go the easier route.

Yes that's what I'm thinking will happen if we're not the only ones interested sadly.

I think the only major concern I’d have as a LL is increased wear and tear of the property. Using outbuildings and such for storage would be fine. But having big deliveries in and out of my property, scuffing walls, destroying the carpet perhaps not.

You're not eating anyone's time as you are serious about renting the property. Sounds like the process will be a bit more complicated, that's all.

@SpaceRaiders

The clause restricting business use usually applies to things like starting a junk yard or a mechanic workshop in the front garden and such like. I’ve personally not had any issues working from home in the times that I’ve rented pre covid.

Why can’t the business rent the house direct? That would circumvent the whole income thing and save you drawing funds just for this purpose. You’d likely have to show 6 months bank statements as proof of income. And I’d always offer 6 months as opposed to 12. The cash in your account will be working harder ie buying more stock etc than if you paid it to your LL.

Thanks.

I'll just mention 6 months upfront.

And the business renting is a good point. I didn't know if that was possible with a private home.

IME landlords and agents always go for the easiest option, every time. If there is someone else with a more straightforward application then I'd say they'd have more chance. This is more so with agents, they have no interest in the character of the people moving in. You may have more luck dealing directly with a landlord who can suss out your situation. Keep us updated op I'll keep my fingers crossed for yoh

@SpaceRaiders

I think the only major concern I’d have as a LL is increased wear and tear of the property. Using outbuildings and such for storage would be fine. But having big deliveries in and out of my property, scuffing walls, destroying the carpet perhaps not.

Deliveries will only be to/from outbuildings.

Inside rooms will be office/zoom meeting set up.

I run two limited companies from my home and have done for the last 4 years. If that’s not classed as working from home, I don’t know what is!

Thanks for the inputs anyway folks. Really appreciate it all.

At least I can go confident today that I'm not a tyre kicker. I hate feeling like that.

I'm so desperate for this to work out. But trying not to get my hopes up. Would be such a better life for my family.

I'm a very experienced landlord. The only thing I'd worry about would be my landlord insurance & whether you would need additional cover, etc.

@wibblewombat

I'm a very experienced landlord. The only thing I'd worry about would be my landlord insurance & whether you would need additional cover, etc.

Thanks so much.

We're willing to help the landlord in any way. We pay so many extra bloody maintenance etc payments on the business place we're in currently that extra insurance for LL wouldn't be an issue us.

Be lovely to get out of where we are and have something more organised.

Because many people are wfh especially at the moment and connecting online

A business from home could mean extra people coming in and out of the home (child minding for example) storage of goods, the property is registered as a business property

As a LL I would first get permission from my mortgage company and inform my insurance if I didn’t and I needed to make an insurance claim they could dismiss my claim as they had incorrect information

I never do anything underhand as a landlord I know many do and a number of people who have been caught out by doing so. That why I suggested the op gets things in writing from the LL not just the estate agents say so

A bit of a headache but if you can pay a few months upfront and agree to cover the extra costs the LL may think it’s worth it

Good luck

I’m a landlord. I have a tenant in there now who didn’t meet the affordability criteria - I said she could either explain why she could afford it or have a guarantor who did meet the criteria. She chose the latter and it was very simple, didn’t delay anything and she’s been a great tenant who has paid on time.

I couldn’t have business premises there but that’s to do with the building headlease and my btl mortgage rather than anything else.