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Help with Tenant: New Agreement

Started by PeterJ, July 14, 2009, 05:09:04 PM

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PeterJ

Hi:

The current tenant joint agreement on my property ends on 28th September 2009, this is with the local letting agency.
She has just informed me today that her partner has left her and wants to come off the current joint agreement.
She intends to apply for Housing Benefit to cover the cost of the rent.
The trouble is she cannot get Housing Benefit on the current Joint Agreement, only on a single tenancy agreement.she has asked me if I am willing for her to sign a new private landlord single tenant agreement without the Letting Agency.
My current agency does not consider any tenant who applies for House Benefit.
My dilemma is:

She has two young children, who would have to switch schools etc if she has to move.
Her parents and auntie (who I know personally) are willing to sign a Rent Guarantor Form.
Do I need a EPC for the property?
How much is the Deposit/Bond ?
Should I give her a 6 month / 12 month rolling agreement?
I have looked at HomeLet insurance is it wise to have the Rent Guarantee Insurance?

Any other advice would be welcome.
Thanks Peter

propertyfag

Hey Peter,

1/ Because you're starting a new contract, then yes, indeed, you need an EPC. They cost between £40-80, from what I've experienced. But they last for 10years, so it's not a major cost in the longrun.

How Much Should Landlords Pay For An Energy Performance Certificate (EPC)?

2/ You should take one month's rent as the deposit and put it into a scheme with in 14 days from the tenancy start date. There's a free scheme you can use.

There's a link to the free scheme at the bottom of the page

3/ Since you're unsure about her, I would provide a 6 months contract. If she proves to be a good tenant, you can always let her continue the tenancy by either going into a periodic tenany or put a new AST in place.

4/ Again, since you're unsure about her, it's worth getting insurance, in my honest opinion. If after the 6 months she's proves to be good, then you may not want to renew the policy.

I hope that helps!

Jools

Seconded with the addition of getting the guarantors!

6 months followed by Statutory periodic agreed. Rent guarantee insurance sometimes only gets paid out if you have completed financial and background checks. Check the small print to make sure you qualify before soending money on something that you can't rely on later.

Negotiate EPC prices. Get a few companies and play one off against another!

Jools