webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Jul 3, 2015 17:05:38 GMT
I see that they are proposing a tenant with no deposit. What do you think? What if the tenant damages something?
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Post by propertymoose on Jul 3, 2015 19:12:33 GMT
Hi Webwiz
Hope you are well.
I have just been chatting with our investment team and we are still waiting for confirmation from the agent as to whether they will receive a deposit from the tenant. As soon as we know this we'll let you know (we are using a new agent so the process isn't as efficient as usual).
A couple of key points to mention are that:
- the rent achieved was significantly more than the target rent for this property
- we have insurance in place that covers malicious tenant damage of a property
We always aim to get deposits from tenants but, sometimes, there is a balance to be struck between voids and getting someone in. It would be great to get some feedback here as to whether investors would rather wait to find someone that pays a deposit or get someone in quick and for a good rent?
As with all of this, the investors own the property and I want to develop our policies in line with our members views (as a collective). All feedback greatly received.
Have a great weekend.
Andrew
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webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Jul 3, 2015 20:13:37 GMT
The insurance will only cover malicious damage, an unlikely event. A deposit is desirable to cover accidental or careless damage which is far more likely. The extra rent will compensate to some extent. I am on the fence on this one.
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Post by Ton ⓉⓞⓃ on Jul 5, 2015 13:21:11 GMT
The insurance will only cover malicious damage, an unlikely event. A deposit is desirable to cover accidental or careless damage which is far more likely. The extra rent will compensate to some extent. I am on the fence on this one. If you're on the fence you're the one causing damage that not the tenant. 
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webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Jul 6, 2015 7:56:06 GMT
Ouch! I think it's me getting damaged! Splinters in delicate places.
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Post by Financial Thing on Jul 12, 2015 0:52:13 GMT
Being a landlord myself, I have never, nor will I ever rent to a tenant without a deposit. I can't fathom a property manager entertaining such an idea. I would rather wait for a quality tenant. If a tenant hasn't money for a deposit, chances are they won't be able to afford rent anyways.
Just my 2 pennies worth
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