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landlordSurrey
04-10-2011, 15:00 PM
Dear all,
This is my first btl venture.
One is a single lady, with her two children, one new born and the other child around 4ish, she will be living with her father and as she is not currently employed her father will be the named tenant taking the full responsibility of the rent and will be paying to us every month.

The other people interested are sharers, 3 gentleman who all work for a transport company.

I am inclined to go for sharers as they will hardly use the house and keep the house relatively tidy.

Please guys can you help me which one to go for with ur experierience. thank you

Snorkerz
04-10-2011, 15:06 PM
Does you property comply with 'House In Multiple Occupation' standards?

landlordSurrey
04-10-2011, 15:09 PM
Does you property comply with 'House In Multiple Occupation' standards?
Thank you for your quick respnse.

I am not sure what that is. How do i obtain that?

Snorkerz
04-10-2011, 16:27 PM
A property shared by more than 2 unrelated people is a 'Home in Multiple Occupation'. Some need licensing, some don't, but all need to comply with certain safety standards.

Telephone your local councils housing department and speak to the HMO officer - they will tell you if you'd need to upgrade the property before letting to your 3 gentlemen.

jta
04-10-2011, 16:53 PM
Personally I would go for the blokes (three wages), The young lady with kids plus Dad could very quickly become young lady and kids only (On LHA)

landlordSurrey
04-10-2011, 20:10 PM
I checked with agent and they say I donot need House in Multiple Occupation as it is not a 3 storied building and plus only 3 sharers are living in it.

red40
04-10-2011, 20:16 PM
Typical agent response, as snorkerz said it falls into the HMO definition, but may not require a mandatory licence. Only your relevant council can tell you if it needs a licence.

A property doesnt need to be 3 storeys to be a HMO, it can be a one storey self contained flat with 3 unrelated occupiers and it would be a HMO.

Dont suppose the agent is also aware that if he takes the rent into his account and deducts his fee, he effectively becomes the person managing and is also liable under the statutory provisions of the Housing Act.

hth

Snorkerz
04-10-2011, 21:30 PM
Sack your agent.

With 3 unrelated it WILL be a HMO and need to comply with the relevant fire and safety standards. It probably won't require a license - but it still needs to comply.

Ask the council - they are the ones who prosecute (and prosecute big time) if you don't comply.

mariner
05-10-2011, 01:34 AM
If you decide on 3 'sharers' will they each have ind agreements or all 3 be joint & severally liable, named on single AST? All 3 need to be fully credit & ref checked. Also is employer local, well-respected, laying people off? What min length of tenancy are you considering? Drivers may soumd best bet but they have skills easily transferrable to many employers in many parts of UK.
If you decide on father dau infant, consider requiring employed house owning Guarantor as well as deposit. Consider rent protection insurance, do reqd credit ref checks for RPI.

midlandslandlord
05-10-2011, 10:07 AM
He said talk to LA, not agent.

Here's a thread from last week where an LL is deep deep down in the smelly doodoo because his agent appears not to have mentioned that it was an HMO.

http://www.landlordzone.co.uk/forums/showthread.php?41734-Hmo

They should ask you for *all* the facts before giving a verdict as it is complex. If it is a very short conversation then you probably need to dig further.

ML