question on our UK let

[Alberto]

we let our UK house. Good agents, good tenants.
Sadly the couple split. The woman is staying in the house with the children.
Now the contract is due to renew. The agents says if this woman were to apply now, her income would not pass the references. I understand it's now become much more likely she will end up in arrear with the rent. But we're tempted nevertheless to renew the contract.

The agent suggests we do referencing.

What to do? If we do references and they confirm it's hard for her to pay the rent, I would be reluctant NOT to renew the contract. Then, referencing is pointless. I know I'm taking some risk, risking my own income for some stranger I've never seen or spoken with.

What's your opinion?
Thanks,

[GaryC]

A good tenant is worth their weight in gold and if she is as good as you say, then I would be minded to try to keep her despite the risks.

But think of it from her perspective too. If she worries that she might go into arrears that could change her approach to many things and she could become a not-so-good tenant.

Would it perhaps be sensible to engage with her to establish her financial concerns and possibly even working out a slightly lower rent or some sort of rent holiday, so that her fears are addressed and her behaviour less likely to change?

We had an excellent tenant once and decided not to increase the rent at all for as long as they stayed. This then coincided with Covid for the final year or so when they were struggling (as were many) and our approach was graciously received.

Just my musings...

[Eric7]

Will she be entitled to some kind of maintenance from the husband?

I think if her income alone won't be enough, you would be justified in asking that question.

[Alberto]

if she is as good as you say,

This is a little stretched.
All I know is that the agent wrote "very good tenants" once or twice in the emails.

But yeah, I see your point.

[Alberto]

Will she be entitled to some kind of maintenance from the husband?

I think if her income alone won't be enough, you would be justified in asking that question.

Fair.
And of course I don't know her income. The referencing was done, at the time, for the couple.
But what I'm not comfortable with is: if it turns out her income is too low, should I say "sorry, we prefer not to extend the tenancy"?
If I'm not prepared to go as far as that, there's no point in doing the referencing. Oder...?

[kiplette]

We've got a pretty crap tenant who has been through periods of not paying his rent etc, but it is his home, and he has a dog - it wouldn't be easy for him to find another home, and the house is not mortgaged. So I suck it up. It is a cheap house and we are not talking lots of money and we don't count on that income for anything. I did try to lower the rent but the agent was funny about that.

So my vote is obviously to let her and the kids stay in their home during this difficult time in their lives.

Maybe on a short contract so if it goes wrong you can re-visit the situation. If that is legal. The agent will advise.

As to references, that seems pointless. If you can go with your kind nature, do.

Also what Eric7 said - presumably she'll get money from her husband for the kids, since they are staying with her.

[Alberto]

Thanks for the comments everyone.

[Emkay]

Have the agents said that the husband doesn’t want to stay on the tenancy agreement? If the lady is a good tenant, references are fine other than her own possible income shortfall, maybe ask for a guarantor. Not the husband if he’s not wishing for a joint tenancy agreement.

Maybe just a short fixed term tenancy before they are no longer available with the RRB.