Renting whilst not earning

[Avocano]

Hi,

I wonder if anyone can help. A guy I'm seeing is having trouble with letting agents considering him as a tenant due to the fact he is not currently earning.
He intends to only rent short term (perhaps 6 months) and has the cash to pay upfront.
There are no dodgy reasons why he isn't earning - he sold his business a few months ago and is waiting for covid situation to calm down before he starts up his next. He has evidence of having the cash for 6 months rent (at least!) but he's still finding it difficult getting anywhere.

I wondered if anyone knew of any particular agents that might be worth contacting (midlands area) or had any advice for him to get around this obstacle?

Thanks in advance! 😊

the issue you have is that people will assume he's using the flat to grow cannabis...

Really?? 😳 I must be very naive... hadn't even crossed my mind. Oh dear.

He's after a house, not sure if that makes any difference?

@Smallgoon

the issue you have is that people will assume he's using the flat to grow cannabis...

This is most likely the reason.

Most people don't have lots of cash lying around with no job.

House = bigger cannabis farm

Oh crap.

Not sure there's a way around this then?

No- could he not just get some form of temporary employment (I am aware finding work is currently difficult but apparently lots of manual work about for a young fit healthy male)

Letting agent was fine with this when I did it but not Midlands so no recommendations I'm afraid!

Has he offered to pay the full 6 months upfront?

Can he get a letter from a solicitor / accountant who helped with the business sale, as proof of source of funds? He could then present that to the agent to evidence non-dodgy origins?

Yes he's offered to pay the full 6 months upfront, he clearly has the cash but I can see how it might look to an agent.

He was actually head hunted recently for a position, he's tentatively considering it, but has his own plans that are due to get going in a few months. Perhaps he should take up the offer after all!

@Peeeas thats a good idea, I'll suggest it to him, thank you.

Unless the landlord has been explicit about wanting a short term tenant, most do not want them. I think that is your issue. It costs time and money, and possibly lost rent every time a new tenant needs to be found. Maybe look at air bnb, see if he can negotiate a long (holiday) let?

That's true, and an ast is usually 12 months minimum. A 6 month break clause in a 12 month contract isn't usual though, if that's an option?

Few issues yes can pay 6 months up front but then landlord may have trouble evicting him if he cant keep paying which without an income source is a reasonable assumption. Its a pain in the arse when a tenant only in for 6 months as have to find new tenant, often with a period of property empty and therefore costing you and often needs cleaning through.
Letter from solicitors explaining financial position may help. Might be worth speaking to a local independent letting agent and explaining his position.

*unusual

We had this when we came back from living abroad and it was a nightmare. Unless he has rent for the full 12 month ast contract then landlords won't consider him unfortunately. It's not about the source of the money (in my experience no-one cares about that) so proof of source of funds won't help, it's about the risk of defaulting after 6 months. In the end we had to do long term. Airbnb

Thanks, some good advice here.
I seem to remember my first rental property had a 6 month break clause, but as it was so long ago I wasn't sure this was still a thing.

Will look into the Airbnb option too. Thank you!

Where abouts in Midlands? North of Birmingham?

I wouldn't rent my property to someone who wasn't earning. What happens after 6 months when he still isn't earning and i can't get my property back

Where is he living at the moment?

Generally people who have enough money to afford six months rent upfront have enough money for a house deposit and mortgage. Is there a reason why he wants to rent rather than buy?

Well, if he doesn’t currently have a job he’s not going to be able to get a mortgage

A guarantor may be a better route than 6 months upfront

He is living in his mortgaged flat currently. He has a buyer lined up who wants to move in ASAP. He is getting a good price for it so doesn't want to pass it up. The reason he wants to rent for now is due to being unsure about location and where his business might take him initially.
@caringcarer yes, north Birmingham

We always offered the rent for the contract upfront rather than provide a guarantor, where we struggled though was clearly not being long term candidates. We always claimed we couldn’t buy as we were on fixed 12 month contracts, and left out the fact that we would probably be moving elsewhere for the next one...

Unless he pays a significant premium over market rate nobody will want him for just six months unless they also have unusual circumstances.