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Renting to bancrupt couple

117 replies

loosenknot · 07/11/2018 19:40

Hi. I own a property that is my sole source of income. A couple have asked to rent it. It took three weeks for the credit checks to come through and when they did it turned out that the couple have been declared bancrupt. (Although this will apparently run out in March, whatever that means). They are self employed and apparently preciousky good Tenants. The estate agent says they pay themselves a high salary. What is the risk if I rent to them? The letting agents said I could ask for six months rent in advance (although the cash would push me into a higher tax bracket). I feel mean saying no but st the same time I feel they were not upfront with me. If they had disclosed this when we met I would have considered but the fact they did not (and the house has been off the market for two weeks as they were meant to move in next week) really annoys me. What would you do.

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greendale17 · 07/11/2018 19:43

I wouldn’t- declared bankrupt and are self
employed. No way

ExCharlieBucket · 07/11/2018 19:46

The estate agent told you they pay themselves a high salary.
Thats just self declared - Wouldnt care but bankruptcy PLUS self employed means they sound totaly dodgy.

thesandwich · 07/11/2018 19:49

Sounds like a lot of deceit- walk away.

iMatter · 07/11/2018 19:50

Seriously dodgy

Undischarged bankrupts have a trustee in bankruptcy who conducts all/any financial transactions on their behalf.

You're being had for a mug.

Don't do it.

Magik1 · 07/11/2018 19:56

Forget it, wait for a better tenant whose upfront with you.

trumpdump · 07/11/2018 19:57

If they have such a high salary, then why haven't they bought their own place?

InfiniteSheldon · 07/11/2018 20:03

Bankrupt literally means they don't pay their bills why would you even consider it?

SushiMonster · 07/11/2018 20:07

No way.

loosenknot · 07/11/2018 20:12

When they saw the house I asked the estate agent why they didn’t have their own house. I also said they seemed quite unlikely and that from meeting them I’d never gues they had a high salary. The EA said the wife earned 90,000 a yesr. I told my family they seemed to good to be true - the EA said they’d never had a problem with them as they’d rented through them previously. They just stopped that tenancy as the owner moved back in.

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loosenknot · 07/11/2018 20:14

I should trust my instincts more (I did insist that the Letting agent get references etc luckily!)

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W0rriedMum · 07/11/2018 20:17

Walk!!
This won't end well.

If they were now in paid and regular employment, I might consider if upon sight of payslips, HR reference and a letter from the previous landlord. Otherwise, there is no chance at all.

ineedtostopbeingsolazy · 07/11/2018 20:18

What do they do that they're self employed and she pays her self 90k?

californiascreaming · 07/11/2018 20:24

Not a chance. Back on the market or if there was a second choice contact them and see if they are still looking...

loosenknot · 07/11/2018 20:24

You’ll never guess ineedtostopbeingsolazy. The Letting agent told me they were ... accountants!!!!!!!!!

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MissMalice · 07/11/2018 20:28

If it drops off in March they were made bankrupt 5.5 years ago.
It’s plausible that the experience prompted them to take their finances much more seriously and even retrain in such a career.
Perhaps they didn’t disclose as they knew it would show up.
Presumably they will have self employed accounts showing the do indeed earn that much money.

ILikeyourHairyHands · 07/11/2018 20:31

I presume they've been renting though this agent for a while with no issues?

WindyWednesday · 07/11/2018 20:34

I’d rather have a void for a month or two than take a tenant who was going to be a tricky one. I now wait and see who else comes along. If it went wrong it would cost you.

Shenanagins · 07/11/2018 20:34

What about asking for a guarantor?

loosenknot · 07/11/2018 20:34

Yes they’ve been renting for two years with no issues at a very high rent and apparently very good tenants. My main problem is that they did not disclose this to me or the letting agent at the start. If they had and the letting agent had approached me and explained the situation and said that there was a plan in place/ why I shouldn’t have been worried, I would feel more comfortable.

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loosenknot · 07/11/2018 20:37

Shenanigans - I have thought about asking for a guarantor (although again they could have offered one). They are a middle aged couple in their sixties with adult kids who live in the same area near me. Their not having a house doesn’t make sense: their last house the rent was 5000 a month!

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MissMalice · 07/11/2018 20:37

If they’ve been renting through this letting agent then they will already have been checked and the letting agent would already have known they had been made bankrupt.

People go bankrupt for all kinds of reasons. If their accounts are solid and they have a good track record paying rent, I’d consider them.

MissMalice · 07/11/2018 20:38

So they have plenty of income but they’ll struggle to get a mortgage. That’s one reason they haven’t bought. There could be others.

BathFullOfEels · 07/11/2018 20:40

Accountants can no longer practice if they’ve been declared bankrupt I thought?

loosenknot · 07/11/2018 20:40

Mid malice A they were t their last place for at least three years - I wonder if they went bankrupt after moving in? The Letting agent said they had no idea - he only knew about their financiak situation based on their original letting - this latest revelation was a big surprise to him. Anyway, I think that I am ok to be wary. My issue is that they did not disclose to me or the letting agent and I think this lack of disclosure is what most bothers me.

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loosenknot · 07/11/2018 20:41

Ah. Miss malice!!!!! That’s a good guess. Income hit no mortgage.

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