Brother signing up for an AST for sister

[Bubblejet]

I have a prospective family (couple + 2 kids) who's brother is seeking a rental property for them. He runs a small business and wishes to underwrite the rent for his sister's family.

I have suggested the best option is that he signs the tenancy agreement on their behalf, and undertakes to ensure they will heed the provisions of the agreement.

The reason for this approach is because, the sister and family are newly arrived from the EU and do not have the credit history, and jobs to take on a property immediately themselves.

He has agreed to pay the 6 months rental for them, in advance.

I have informed him he will need to be pass the relevant 'tenancy' checks before we can proceed.

Any thoughts/issues that I should be aware of...
thx in advance
bubblejet

[attilathelandlord]

Do. Not. Touch. With. Bargepole.

The only people who should sign tenancy are those who are going to live in the property unless you are happy for subletting. If man absconds, then you are stuck with tenants who may not/cannot/will not communicate with you and you will have to evict via courts.

Man is self employed. What if his business goes pearshaped and/or he clears off. Who will pay then? See above para.

Can the family support themselves? Do they already have jobs? Is only one person (husband) earning, can he earn enough to pay all of rent? Will they stop paying rent immediately and hang on for bailiffs in order to get council housing?


Just a few of my cynical thoughts!

[dazalock]

You dont mention from which perspective you are talking, are you the landlord? If so, and you are happy that the family will have a income, allbeit from the brother, just sign them up and have the money pass through thier hands, that way you know you are getting 6 months rent and can issue a S21 in the normal manner. Be careful that the 6 months advance isnt considered a premium though. Your solution seems overly complicated.

[Nora Kay]

According to previous postings by "those who know", the tenancy would only be legal if 1) the tenancy agreement is signed by the tenants 2) the rent is paid 3) the tenant has possession of the property. If the brother signs the agreement, he fails on number 3. How can you issue a S21 notice on the brother reclaiming possession when he has never taken possession? You can't serve it on the family as they are not the tenants according to the agreement. If you want to continue with this, get the family's name on the agreement, and have the brother sign as guarantor for the rent and any damage. Make sure the cheque for 6 months rent clears before they enter the property, and issue the S21 at the start of the tenancy.

[dazalock]

Read my post again, I said to sign the family up and get the brother to pay through the hands of the family. Effectively says exactly the same as you, the ONE who know's

[Paul_f]

I'm sorry Dazalock but I have to agree with attilathelandlord as there are too many problems already, and that's before they take up possession.

[Bubblejet]

Thanks all.

It seems the only way to consider this is:

a) tenant signs AST
b) tenant pays FULL 6 months rent + deposit in advance.
c) agreement is directly with tenant.

Thx
Bubblejet

[Bubblejet]

Oh additionally get the brother to act as guarantor, even if they pay for 6 months in advance.

Is there any value in getting the brother to act as a guarantor?
B

[Nora Kay]

If it is written in the guarantor's agreement, he could also be liable for any damage caused to the property, and the tenant may not leave at the end of the 6 month's, so the guarantor would also be responsible for rent payments after the end of the initial term.

[Bubblejet]

Thanks Nora Kay.

If you are interested, we have decided not to proceed. The brother offered 6 months rent in advance. Sounds good! Read on..

I sent the tenancy verification forms and he felt I was being too risk averse. After politely, explaining that giving my keys to someone whom I knew nothing of, was decidely dodgy, even for a large sum of money.

We have said no.

Thanks for all your help!
A

[attilathelandlord]

Well done! A well designed tenancy application form generally sorts the chaff from the wheat!

Damn right you want to know their details, they get a property worth for example £200,000 and they don't want to tell you about themselves!

I don't think so!!!