“It’s a friend of a friend” or “It’s my brother’s mate, they won’t let me down” I’ve heard these words a lot over the years
When someone comes along that you know, it can seem like a very attractive prospect to skip referencing, side step all those questions that you would normally want answers to and drop your guard, so to speak
Let’s really give this some more thought because for Landlords, it can be a MORE difficult decision whether or not to let to someone that you already know, especially when you consider some of the things that could potentially go wrong. Don’t forget that any issues that arise, you’ll be dealing with head on, unless you have a Managing Agent on board. What will you do if the rent is persistently late? How will you feel if there’s a difference of opinion on something and you end up having an argument? How will you tackle any breach of contract?
I recently found new tenants for a Landlord who had previously let to family members. When the tenants moved out, there were problems with damages, cleanliness and rent owing – now that’s a really hard situation to cope with because there’s emotion involved, possible irreparable damage to relationships, plus financial loss to the Landlord
In the first instance, before you decide if it’s right for you, you might want to ask yourself these questions :-
How about asking for some proof of income to know that affordability is taken care of? Is their job permanent or have they been given a zero hours contract, which is becoming more common lately. What do you know about any debts, poor credit history? Have they rented before? What does a reference from a previous landlord look like?
One thing’s for sure, getting it wrong can be costly and stressful. I know of some landlords that have even ended up selling their rental property after a bad experience
On the other hand, letting to someone you know or a relation can often be the perfect solution! If you’re in regular contact, there’s a good chance that any repairs will be reported without delay and the rent will come in like clockwork. There may also be a bonus of a trouble free long term let with continuity of rent and a long and happy tenancy!
If you enjoyed reading this blog, you may enjoy this one too