New let/periodic tenancy dilemma

[Vik]

Hi

I let a flat through an agency. It's a 2 bed with 2 sharers. The one guy doesn't pass financial referencing so pays his share 6 months upfront. The other pays monthly. There is only one TA though.

The TA is now up and the agent tells me that if I allow it to go to a periodic tenancy, both payments would be made monthly, even though that would be a change in conditions in effect. Also, it also means that my LL insurance rent guarantee would be invalidated. 

But if I get a new TA (which they want the best part of £200 for!) I have to start again with all the paperwork, references etc to make sure the insurance is valid.

I am trying to get answers from the agent but they are not being very communicative.

Further, I spoke to the agent that I get my insurance through today and he told me that the arrangement (one tenant paying upfront, the other monthly) would probably invalidate the rent guarantee  insurance anyway, although I really can't see why that would be the case and he couldn't tell me why.

I don't know if anyone can offer any advice at all. Just seems there's problems whichever way I turn!

 

[Grampa]

I do not believe you need to re-reference to keep the LL insurance valid. Read the policy and phone the insurance company the agency may be saying this to justify their fee and I bet it allows for the tenancy to become periodic.

If your insurance policy is arranged by your agent there is nothing to stop you sourcing your own which you will probably get cheaper. There are plenty out there Direct Line, Rent4Sure to name 2. I know Rent4Sure allow a new policy to be taken out after the tenancy has started but I think you cant claim in the first 3 months.

£200 is a outrageous figure to charge for a new AST and I bet they are requesting a similar amount from the tenants as well which one of the reason the tenant fee Act comes into effect on 1st June banning tenant fees. 

Find your own insurance policy explaining the tenancy situation to them to make sure you comply with the rules and let the tenancy continue on a periodic basis. How the rent is paid shouldnt really effect it.

Now may be the time to request copies of all documents "for your records" just in case you decide to change agent at a later date. 

Speak to other local agents to see what they can offer you. But dont forget to check any termination clause in your agency agreement first.

 

 

 

 

 

[Richlist]

The are no such things as problems, only opportunities.

Options:

* Get a new Lettings Agency. Or

* Get new tenants. Or

* Ditch the rent guarantee insurance.....replace with a home owning gaurantor for each tenant.

[Vik]

Thanks for your replies.

I think this might be a bit of a learning experience for me. 

I've already told the agent I want to manage myself which I guess is making them even more uncooperative. So that was a mistake. I've asked them for the inventory and references but yet to hear back from them.

The insurance was renewed in January and not cancellable so no getting out of that. It's with a broker rather than an agent, not linked to the lettings agent. The problem with the insurance is because one tenant doesn't pass referencing, he has to pay upfront but the agency says that he can only pay monthly on a periodic tenancy, which is why a need a new TA, then because it's a new TA albeit with the same tenants, referencing has to be done again. Then the broker is saying it's not valid anyway which I don't understand.

It's just a mess to be honest. 

Thanks again.

 

[Richlist]

As the issues are with the agents, the tenants and the insurance my previous post advising changing any of them still applies.