To be shocked at the incompetence of the estate agent industry?!

[HayzCo]

We are expecting a baby very soon, so sold our flat and have decided to rent as we aren’t sure exactly where to buy next and we’re happy to sell chain free.

My husband started his own business last year and I’m currently not working, but we can put up the full cash of a 12 month contract. It’s like talking to a brick wall trying to get EAs to understand the benefit of making this offer to a landlord. It’s literally like talking to the “computer says no” character from Little Britain. They’re telling me an employed couple paying monthly is more attractive but can’t explain why.

I’m sorry if this offends any estate agents, I’ve written the subject partly to grab your attention, as I would genuinely like to understand how a couple that doesn’t quite meet the “standard form” criteria can secure a rental! Surely putting the money up front is more security for a landlord.

Exactly this. We would fly through credit check, I’ve only just stopped earning myself because my toddler has been suffering severe asthma and can’t be at nursery! Husband was senior at one of the big four accountancy firms before going solo. But aren’t getting near that stage.. very stressful actually so probably am being a little “dramatic” (to the other poster’s point!)

We have most definitely been naive to the workings of the rental market, that’s v true! We needed more space but had no idea we’d be risky bet with cash in the bank and growing business.

Useful to get LL perspective but can you see such an offer might well be quite legitimate? I guess the power is in your hands though and enough demand to not worry about it. Tricky for self employed families though.

More hope, thank you!

Of course I can see your situation is just as likely to be genuine

Have you tried going through OpenRent which is an online agency where the landlords communicate directly with potential tenants ? You can state your case, explain the situation and see how you get on. Can you offer a homeowner guarantor ?

Why would you even offer a year up front? What if it was a nightmare rental with awful neighbours and you are then stuck there for a year.

I rent out two houses and wouldn't really want a year's lump sum or see it as the amazing deal you think it is.

The offer of 12 months up front is the red flag for estate agents, it is a well known trick of people who set up drug farms or sublet, after the 12 months is up no more money is forthcoming and landlords have months of heartache trying to get their property back. They lose out on huge amounts of money.

Just explain that your husband is self employed, when he set up the business, show the accounts to prove it is providing an income, explain your situation with the house sale but do not offer to pay 12 months up front, you shouldn't have any problems then.

Thanks for advice re: offering 12 months looks riskier, didn’t even think that! We didn’t make offer proactively, the EA initially said that’s what we needed to do. Yes on guarantor too, although that seems silly in itself given we’d have paid the full amount and as noted above, go onto rolling contract after that. OpenRent good idea too, thanks.

Are cannabis farms really such a risk?! Had no idea if so..

We’ve mostly been seeing 12 month contracts coming up, but it’s a good point. We do feel it’s a risk on our side too!

Your problem is that there are enough people who money launder. Buying or renting is a quick way to clean up funds. Your anger should be sent in that direction, not people who become personally liable if caught aiding crime.

We really really didn’t have any of the issues that other posters are suggesting... none of the estate agents we spoke to batted an eye at our situation. And we spoke to at least 6 in the course of many viewings - a mixture of local and national chains. All said that we’d need to pass a credit check and provide evidence of having x times the monthly rent, on top of the 12 months rent, in our bank account. Which sort of implies that they weren’t concerned about money laundering or why we’d be in a position to have a lump sum in our account

Are there other estate agents you could try where you are looking OP? We only moved in August, so I doubt things have changed massively! Our biggest issue was finding a house in time before we completed, because the rest of London seemed to be doing the same thing as us and rental properties were going within a day of being listed.

I've only ever met one competent Estate Agent - letting agents are by far the worst. It's because they're pretty much invincible - if they fuck up then the landlord gets the blame, nothing ever happens to the agent. Because they're all utterly shit there's no competition and no one can just go elsewhere.

I’m a bit of a sucker for a sad story. I’ve been caught out before. But never from people offering money upfront.

I ask lots of questions about my potential tenants and offer to meet with them. It works both ways. I hate, hate having to decide between people.

Honestly OP, I’d let you you no worries.

The LL decides not the agent.

Oh - and you don't need to use an agent. There's always Gumtree or the small ads

Problem with hydroponics is that they destroy the house, so 12 months rent doesn't even touch getting it sorted.

I was a negotiator for a few 'superior' EAs, happily I'm not in the industry any more, sales not lettings.

Yes, it was awful and they are awful. This is a generalisation but they were horribly misogynistic to work for too.

I can honestly say that I tried for our customers, I really did, but it was the proverbial banging-head-against-wall scenario.

Don't be fooled by prestige brands either, they are just as bad as the others.

@HayzCo

Genuine question here, why are you finding it hard to account for our situation other than to presume we are drug dealers or dodgy people? If you start your own business but need to move before you have 12 months of accounts? It seems this just doesn’t allow people access to the rental market. Very much regretting selling to rent now, given the incredible close mindedness to the varied situations people live, not least the literally millions of self employed people (who as a country we claim to wish well!)

It’s amazing to see three separate people jump to conclusion of cannabis farms! You have to laugh.

As an aside... Can you PM me with your contact details.

I have run out of spliffs, and my dealer is away til Wednesday.

#joking

@HayzCo

Genuine question here, why are you finding it hard to account for our situation other than to presume we are drug dealers or dodgy people? If you start your own business but need to move before you have 12 months of accounts? It seems this just doesn’t allow people access to the rental market. Very much regretting selling to rent now, given the incredible close mindedness to the varied situations people live, not least the literally millions of self employed people (who as a country we claim to wish well!)

It’s amazing to see three separate people jump to conclusion of cannabis farms! You have to laugh.

Try a temporary rental. They'll be much, much more understanding. Either that or a park home? Only suggesting that, as we have a fab park home site near here that specialise in temporary rentals and they're all lovely! Mostly log cabins but a few nice static caravans and park homes

@TakeYourFinalPosition

I’ve been self employed for nearly a decade and rented for five years of that, and I was never treated like I was unemployed or asked for accounts. I had to produce accounts for my mortgage, but never to rent...

Upfront payments just aren’t popular. Most landlords prefer the money coming in monthly, and it’s harder to account for the lump sum upfront. It’s also perceived to increase the risk of letting to you, rightly or wrongly.

I’m not sure if the accounts thing is a Covid thing, and related to the speed of the market right now, but I don’t think it’s normal across the board. I’d be trying to find an EA happy for you to pay normally.

I privately rented for 19 years and ALWAYS had to provide my accounts

Try OpenRent, bypass the agents...

Did you not get the estate agents you sold with to find you a rental as part of the ''package'' i.e. you tell him you couldn't sell without getting a secure rental property? In France renters sometimes actually have to pay a full year's rent in advance if their job does does not seem great - that is accepted but regarded as hard for the renter but not a matter to cause any suspicion.

They're a law unto themselves. In my last flat the estate agent insisted on only giving me a 6 month contract, I needed a guarantor, and I had to pay the 6 months up front.

This was because I'm a single working parent who gets a UC top up. So on the one hand they claimed to be concerned that I couldn't afford the rent, and on the other expected me to find thousands of pounds to pay 6 months upfront plus deposit and other associated fees

All hell broke loose when I decided to leave at the end of the 6 months because they decided they could literally make up the law to suit their own agenda.

There's a special place in hell for most letting agents.

I agree that some LAs think offering to pay upfront indicates money laundering and / or cannabis farms. The latter is especially worrying as the dodgy wiring can cause major house fires, and the landlord can be prosecuted.

My current letting agent, however, required me to pay the first year in 2 X 6 month chunks, because my old landlord was a bit of a wanker and refused to give me a reference at the last minute (he hadn't found a replacement tenant and wanted to prevent me moving). It seems they are perfectly happy to take rent upfront, but only if it's the LAs idea...

I’m an accidental LL and manage the flat myself. This means for large periods I couldn’t sell. I do now make a bit of money but I’m probably at the break even stage overall. I use a lettings agent when I need new tenants who references thoroughly.

There is absolutely no way I would take any potential tenant with an upfront payment. I want any tenant to pass the credit and referencing checks. If you can’t, it doesn’t matter how genuine your story is I wouldn’t engage. I don’t want the risk. I still have to pay numerous fees to keep the place running but it takes an age to get out a no paying tenant.

@84wood

I’m an accidental LL and manage the flat myself. This means for large periods I couldn’t sell. I do now make a bit of money but I’m probably at the break even stage overall. I use a lettings agent when I need new tenants who references thoroughly.

There is absolutely no way I would take any potential tenant with an upfront payment. I want any tenant to pass the credit and referencing checks. If you can’t, it doesn’t matter how genuine your story is I wouldn’t engage. I don’t want the risk. I still have to pay numerous fees to keep the place running but it takes an age to get out a no paying tenant.

But this is what I don’t understand, there’s no risk of having a “no paying tenant” in this scenario... a full year of your mortgage would be in your account. You’d have the same checks to show credit score etc. Hence my “computer says no” point...we don’t pass affordability test despite saying “but here’s the money”. Help me understand your point further?

I understand more the point about criminal activity and it being a red flag, if this is what criminals do, but I do wish there could be more room to understand alternative reasons for why people might not be in traditional employment but still be totally capable of being a reliable tenant.. if anything as people have said, they’re going out of their way to transfer money to you so you don’t hold a risk.

Come on, it’s not logical?