Overdraft requirements for coming growing season.

[Blue.]

Yes , a lot do. I rent a few houses out and occasionally interview new prospective tenants. You would be amazed at the fallen faces when i insist on a couple of thousand bond/advance rental. They may turn up smartly dressed and with a nice but not new car, but the reality is that they haven’t got a pot to pee in. Nothing whatsoever saved.

Different strokes for different folks!

We need them renting it’s what makes the world go round.

I posted in a thread at Christmas regards staff turning up,basically they would because they need the money.

 

[getting on]

Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?

I moved bank after 60 years, best move i ever made. My 60 years at my old bank counted for sweet nothing.

 

[Johnnyboxer]

Yes , a lot do. I rent a few houses out and occasionally interview new prospective tenants.

You would be amazed at the fallen faces when i insist on a couple of thousand bond/advance rental.

They may turn up smartly dressed and with a nice but not new car, but the reality is that they haven’t got a pot to pee in.

Nothing whatsoever saved.

Fur Coat and No Knickers then

 

[michael N123]

I think the number of families who have under £500 of cash or savings at any one time might shock you.

The 2018 figure I heard was 1/4 *families* have under £100.

But even well off family’s will have less than £100 at the end of the month because they ‘need’ to mortgage a big house and finance a Range Rover no ones bothered about saving when you can get everything you want on borrowed money

 

[ollie989898]

All forms of borrowing are tools. There is no need to automatically fear a credit card or overdraft. Many many big businesses would have sizeable overdrafts- money is cheap to borrow and you need a pool of cash to cover the daily ins and outs of business trading. This is not new and we have been here before. How big an overdraft should be, what it cumulatively costs and what you may finance with it are separate discussions. A sound business with a good game plan staffed by people who are good at what they do need not fear borrowing of any kind. The grief starts when overdrafts are used to finance the wrong thing or no check is made on what they cost.

Why is TFF such a cauldron of doom and gloom about virtually everything.

 

[Still Farming]

But even well off family’s will have less than £100 at the end of the month because they ‘need’ to mortgage a big house and finance a Range Rover no ones bothered about saving when you can get everything you want on borrowed money

No point in saving as interest rates for savers crap possibly anyhow!

 

[icanshootwell]

Yes , a lot do. I rent a few houses out and occasionally interview new prospective tenants. You would be amazed at the fallen faces when i insist on a couple of thousand bond/advance rental. They may turn up smartly dressed and with a nice but not new car, but the reality is that they haven’t got a pot to pee in. Nothing whatsoever saved.

My agent charges tenants 6 months up front, if your self employed or have no credit history.

 

[ollie989898]

My agent charges tenants 6 months up front, if your self employed or have no credit history.

Jaysus, a months rent upfront as deposit is fine but 6 months- that would be 6000 quid around here probably. You won't find much properly locally for rent for less than 800-900 a month.

 

[icanshootwell]

Lets be honest, banks love a customer with a sizable overdraft that,s keeps it under control, plenty of money to be made from there bank charges and yearly fees.. Greedy gits.

 

[Farma Parma]

My agent charges tenants 6 months up front, if your self employed or have no credit history.

Can u legally do that?
TDS that i use for cottages here is all above board & one months rent upfront is kept by the letting firm in a sep account
until such a time as the tenant leaves.
But 6 months yeessshh

 

[icanshootwell]

Jaysus, a months rent upfront as deposit is fine but 6 months- that would be 6000 quid around here probably. You won't find much properly locally for rent for less than 800-900 a month.

It sounds a lot but you get tenants that can afford it, I remember having one tenant that struggled to find enough for the deposit, your in for some fun then.

 

[ollie989898]

It sounds a lot but you get tenants that can afford it, I remember having one tenant that struggled to find enough for the deposit, your in for some fun then.

Ive heard lots of stories about tenants. Scary stuff.

 

[Farma Parma]

Lets be honest, banks love a customer with a sizable overdraft that,s keeps it under control, plenty of money to be made from there bank charges and yearly fees.. Greedy gits.

Yeah weve been there. Not any more tho, so what do they do up the OD rates just coz they want too.
They havnt been getting out of us what they used too & thats the more annoying part.

 

[icanshootwell]

Can u legally do that?
TDS that i use for cottages here is all above board & one months rent upfront is kept by the letting firm in a sep account
until such a time as the tenant leaves.
But 6 months yeessshh

How it works here is tenant pays approx 2 months rent as a deposit, then on top of that pays the 1st 6 months rent up front. After that it,s every month.

 

[B'o'B]

5 weeks rent max deposit is my understanding.

 

[Farma Parma]

How it works here is tenant pays approx 2 months rent as a deposit, then on top of that pays the 1st 6 months rent up front. After that it,s every month.

what sort of house n rent are we on about here tho? & is that LEGAL or just farmer made up terms? has the Property got a Energy Performance Rating of E ???
Not legal to let them out unless its passes that test neither.

Domestic private rented property: minimum energy efficiency standard - landlord guidance

Guidance for landlords of domestic private rented property on how to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E).

www.gov.uk

 

[Hfd Cattle]

How it works here is tenant pays approx 2 months rent as a deposit, then on top of that pays the 1st 6 months rent up front. After that it,s every month.

Your doing well to get that . We get 2 mths rent as deposit. One of our tenants is in a bit of finance trouble so I've got him working off some of his back rent and it's working out ok . He has about 1200 to work off but he is a good builder so got plenty for him to do .

 

[icanshootwell]

what sort of house n rent are we on about here tho? & is that LEGAL or just farmer made up terms? has the Property got a Energy Performance Rating of E ???
Not legal to let them out unless its passes that test neither.

Domestic private rented property: minimum energy efficiency standard - landlord guidance

Guidance for landlords of domestic private rented property on how to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E).

www.gov.uk

We,ve had all the epc ratings done all above D, all gone through estate agent so presume its leagal, why would it not be leagal? its up to me who lives here. What you need to remember is once you get a bad tenant and they can,t pay the rent your stuck with them for a year, there the ones with all the rights.

 

[anzani]

Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?

Best to do it before it matters .
My hard learnt experience would suggest that its best to spread your banking around, use different banks, restrict your borrowing, put money away to meet known liabilities -and dont show them the whole picture. Remember :, and remind them :
they work for you, not the other way around.

 

[Steevo]

So many tenants can't afford a deposit nowadays, hence the number of "no deposit" schemes available. This is just another way to make money from the tenant.

The tenant pays 1 week's rent as a flat fee up front (non-refundable) to be "guaranteed" for up to the value of 6wks rent.
Any damage done during the tenancy, the deposit company pay for.
They then recover this sum from the tenant!

I wouldn't be surprised if the deposit fee is for the length of the tenancy....so if you wish to renew your tenancy at the end of 12 months....you pay another flat fee of 1 wk rent.


Makes a deposit seem like a much better option.....!