I have substantial savings but no job. How to get someone to rent to me?

April 13, 2014 8:02 AM

I have ended a long-term relationship where we both had mental health issues (bipolar depression in my case). I haven't worked since 2005 but am a graduate (was back in 1991 though, I'm 44 now) and have about 12 years of work experience. I believe I could work again if given the opportunity, and am willing to do the work either on myself or in terms of learning marketable skills to become employable. I also have about £50,000 ($70,000 I guess?) remaining from an inheritance, which I'm using to live on. It's actually possible to buy a modest apartment where I live for that money, but then I would not be eligible for out-of-work benefits, hence the need to rent. I have never rented before, I lived in my parents house until age 36 and then with my partner in her mother's house until age 44. So I have no references to offer as a previous renter, and am quite socially isolated due to shyness so not sure about finding character references either. My credit score is great due to only modestly using a credit card for 10 years and paying it off each month, and not getting into debt during that time. How can I best sell myself to a letting agency as someone their landlords might want to rent to, and what concessions would I need to make for renting to be a possibility - pay a big deposit? rent in advance? money in escrow account?

There is one slight complicating factor too. When I had my mania (3 manic episodes - 2002, 2004 and 2005 requiring stays of 1, 3 and 4 months in hospital) I also went on spending sprees. So when the family house was sold in 2007 and I moved in with my partner, we agreed my sister would keep the money in her account to avoid the risk of a crazy spending spree. She has been sending me about £900 a month for the last year and a half by automated online banking. I haven't had any manic episodes since 2005 and my psychiatrist call my bipolar "in remission". I suspect me being bipolar (which I guess you would call a lifelong condition, as there is always the potential to relapse even if small) would be a huge red flag for a landlord, as they would imagine some crazy person trashing their lovely apartment. So should I get my sister to move a sizeable chunk of the £50,000 into my account (if so, how much?) so that I don't need to highlight this issue. Or am I being unfair and is the bipolar something I should disclose? Finally if lettings agencies really prefer to deal with people who are currently gainfully employed, I guess I could go to a private landlord who might be more flexible. What should I be wary of in such a situation (for example if I gave a big deposit could the landlord just disappear with it? what's the balance between being fair to them and fair to me?)

Thanks in advance for any advice or tips. I am based in Glasgow in Scotland, UK if that makes any difference.

posted by AuroraSky to Home & Garden (13 answers total)

Is your sister employed? Would she be willing to guarantee / co-sign the lease?
posted by neat graffitist at 8:08 AM on April 13, 2014 [1 favorite]

No one needs to know about your personal circumstances. Your credit is great, you can afford the rent, end of story.

To explain your rental history

- you lived with family to taking care of sick family member (this is true! You were taking care of yourself!!)

- you lived in a private residence during a long term relationship that recently ended and now you want to rent an apartment.

End of story.

I have no idea, but I imagine beyond a criminal record or similar, you are worrying about things a landlord can not legally ask you in your jurisdiction. Research this.

You might need to spin the inheritance situation, but it is not unusual for an inheritence to be held in a separate account or to be doled out monthly. In fact, that is totally NORMAL. As long as the separate account has your name and you can provide proof of the balance, you should be fine.

- Do NOT pay a higher than average or legal security deposit .

- Do NOT pay in advance or put money in escrow for a landlord.

You pay off your credit cards. You have no debts. This is enough proof you are a reasonable person to rent to.

Anyone wanting more is trying to take advantage of your naïveté about renting. Keep your naïveté about this process to yourself.

Good luck!
posted by jbenben at 8:17 AM on April 13, 2014 [3 favorites]

As far as financially, when I was self-employed I was able to lease apartments provided I had the equivalent of one-year's rent (or whatever the lease term was) in the bank and I showed them the bank statement. I never even went into income because of this. For all they knew I was unemployed. I had no trouble renting 3 different apartments this way. This is the US.

As to the bipolar, no I would not mention it. They have no need to know this - you're just a tenant. All a landlord needs to know is that he is going get paid each month and the apartment twill be kept in reasonable condition during your stay. I would not volunteer anything about your past and if they absolutely HAVE to know about your lack of rental history just say you lived in your family home all this time. No need to go into why. Don't volunteer anything.

Your good credit will help you - keep this all about the financial aspects because this is business, not personal, and it seems to me you are feeling very personal about this (but my younger self did too at one point so I get that).

I wish you much luck in finding your new place!
posted by WinterSolstice at 8:32 AM on April 13, 2014 [2 favorites]

You're kind of glossing over this but you say you cannot buy a flat with your inheritance because that would mean you lose your benefit entitlement? So you are on benefits?

That would be one of your income streams that you'd be expected to disclose. And that would be a much bigger problem than lack of rental history. And a lot of UK landlords refuse to let to people on benefits. I am one of these landlords and I have instructed my my letting agency not to accept applicants for my flat who are on benefits.

Rental history does not even feature in my decision to accept a tenant. What features is adequate (employment) income to pay rent and expenses and credit score.

Now you're not the typical person on benefits landlords have in mind. But if landlords can choose between the gainfully employed with good credit score and the benefit and inheritance receiving with good credit score, where they'd have to consider a lot more information to get comfortable they are likely to go with the gainfully employed applicant.

I'd prepare a little application pack that you take with you when you view flats to rent. That and your check book to pay the admin fee normally charged when you apply for a flat. And as part of that information you explain your finances and your credit score. And you explain it to them at the time. You need to get the agent happy then and there so they can talk the landlord into being happy. Would be my strategy.

Finally, educate yourself about tenant rights. Go to the Citizen's Advice Bureau's homepage and read up on what fees to expect, the deposit process etc.
posted by koahiatamadl at 8:38 AM on April 13, 2014 [3 favorites]

Also, if you are on benefits, would transferring the money into your name have similar repercussions as buying a flat? Read up on that as well, whilst you're reading up on tenant rights.
posted by koahiatamadl at 8:53 AM on April 13, 2014 [1 favorite]

Would you consider sharing a group house? Might be easier to be accepted as a partial-renter, as opposed to renting an apartment by yourself and being the sole renter.
posted by easily confused at 8:54 AM on April 13, 2014

Response by poster: Oh no sorry I should have explained that better! Because of my inheritance I am not eligible for job-seeker's allowance or housing benefit or any such thing. I do still get Disability Living Allowance because of the depression side of my bipolar. However there are so many depressed people out there who end up being able to function and hold down a job. Disability Living Allowance is something you can get even if you have an income or savings, it's not counted against you that you have these things. And in fact depending on the disability there are even people who are working and are still able to claim DLA. It is £290 a month or so but I am not depending on that to live on, given how much savings I have. It could be that if I did training courses or something I would be viewed as being in better health, and no longer eligible for it anyway. Is the stigma against people on benefits so bad that I would have to disclose it, since I am not relying on it to pay rent or living expenses? From my previous employed days I actually have two current accounts so I guess I could get the DLA sent to the one separate from the one which my sister is sending the money too, though this seems a bit deceptive. And if people with benefits are really so looked down on I could give up this benefit, though £290 a month isn't to be sneezed at. I would be interested to hear what would be the concerns on a landlord's side.
posted by AuroraSky at 9:07 AM on April 13, 2014

I'm not in the UK, but in the US I'd advise you to find an independent landlord rather than a company and give them a copy of your bank account balance to prove that you're solvent.
posted by zug at 9:14 AM on April 13, 2014

Several poker players I've known would just pre-pay their rent for the term of the least and I haven't heard of a single landlord turning down this offer. (This is in the U.S.)

If you'll be paying your rent from your savings anyway, could you just pre-pay a year's rent? Interest rates are so low right now that this won't cost you very much. Crunch the numbers and see if the opportunity cost of the forgone interest income is worth it to you to be able to rent the apartment you want.
posted by Jacqueline at 9:38 AM on April 13, 2014

You really need to try renting a couple of places- even places you might not want to live- to see what your reception is instead of posting here to get what if scenarios. You're probably worrying over absolutely nothing. Stop doing that.
posted by ethnomethodologist at 9:38 AM on April 13, 2014 [1 favorite]

I have had this difficulty, have asked a variation on this question here before. As someone who is also tripped up trying to find places to live, I'd say that the shyness and social isolation is the greater issue than not holding a job. We don't want to be scrutinized, don't want to need to explain ourselves, may feel somewhat embarrassed about our disengagement from greater society and thus become avoidant and never approach prospective landlords. Making the problem bigger than it needs to be. Other people do find places to live, and do so with greater financial hardships than having two, three years worth of average annual income sitting in the bank. My success dealing with it varies, but my strategy has been to carry a bank statement showing that I have enough money to cover the rent, seek smaller non-corporate situations and just walk away from anyone with a complicated application process.
posted by TimTypeZed at 11:09 AM on April 13, 2014

I have some experience with renting in Scotland in general and Glasgow in particular.

Yes, you can offer to pay X months' rent in advance, and/or show the letting agent/landlord evidence (a bank statement) that you do in fact have the money available in your account to pay your rent. They will likely be happy with seeing that you regularly have that £900 coming in from your sister, and have had for a while; if not you could get her to transfer a lump sum. As for how much, that depends on what the letting agents would want to see and is something you could discuss with them in advance if you like, although personally I'd transfer the equivalent of 6 months' rent (the length of a Short Assured Tenancy which they would probably want to sign you up for initially - this doesn't mean you'd be kicked out after 6 months, it means the lease would become month-to-month after the initial 6 if you/they didn't sign up for another set period).

You can also get someone (your sister?) to act as a guarantor, which will avoid the issue of whether or not they're happy that you personally can pay the rent, although obviously it means someone agreeing to act as guarantor.

I've never been asked for a character reference by a letting agent here. I have been asked for the name of a previous landlord, but I wouldn't worry too much about this, and just tell them it's the first time you've rented - everyone rented for the first time once.

Don't disclose your bipolar disorder. They don't need to know, and they almost certainly won't ask you about health conditions anyway.

What should I be wary of in such a situation (for example if I gave a big deposit could the landlord just disappear with it? what's the balance between being fair to them and fair to me?)

Shelter Scotland have a great site on Scotland-specific renters' rights. Advice specific to your deposit question is here (short answer: no they can't, and if they do that is unlawful and there are avenues you can go down to reclaim it). In general though, the balance between being fair to you and being fair to them is already pretty solidly set out in the law and not something you personally need to negotiate.

Don't assume that the big letting agents are any better than private landlords or smaller letting agents, though. In my experience (of two major Glasgow letting agents) they can be pretty awful - e.g. asking for an 'administration fee', which is illegal in Scotland - and if you've never rented before it is worth knowing what your rights are as a renter before signing a lease whether that lease is with a big company or a private individual.
posted by Catseye at 11:13 AM on April 13, 2014 [2 favorites]

We have been in a somewhat similar situation in that we were moving to a new country where we had no credit history, and were both self-employed. I wrote a letter I put under the door of every letting agent in town saying:

-- That we had just sold a home and had no recent rental references
-- That we could pay three months rent in advance as well as a standard deposit
-- That we would provide photocopied bank statements as proof of income
-- That we could provide excellent personal references

The fact you are getting DLA is irrelevant because your rent is not being paid by the dole. Do not even mention it. Do tell them you are self-employed. Do tell them you and your partner are splitting and you are leaving the family home. Do be willing to pay rent in advance but do not hand over the cheque until you are sitting down to sign the lease.

If you are trying to make ends meet in Scotland on £1190 a month, please be very very cautious about heating costs of any potential properties.

If you need an email friend to read the lease for you, to contact letting agents, to be a reference for you or to help in any other way, please feel free to MeMail me.
posted by DarlingBri at 12:39 PM on April 13, 2014 [2 favorites]