Rental and investment property question

[gprp]

Dear forumites ,

It's been a while since my last post - the collective wisdom of Somersoft helped us to purchase a property that we wanted more than 5 years ago .

I am trying to help one of my friends since she's encountered a difficult situation due to lack of experience . The couple decided to separate . The mortgage will be transferred to the ex. husband and the ex. wife will get the sum of $150-200K in cash . She'd like to rent a house in a specific area ( close to the school ) to have enough time to purchase an investment property in another ( more affordable ) area .

She's tried to rent a house before the above-mentioned sum has been transferred to her account . Obviously she's encountered the situation when landlords are reluctant to accept a tenant with two small dependants .

A question :

What is the best course of action in this case ? The ex. husband offered to be added to the contract to get a very good chance of approval, however her Centrelink rent payments will be affected - the contact needs to be on her name only . Obviously , she has a substantial amount of money on her account .

I am curious to get your feedback about the best approach in this case.

Thanks in advance
gprp

 

[thatbum]

I don't see why this is that difficult a situation?

Either find another house with a more accommodating landlord, or try and persuade this landlord to accept her - maybe by proving she has those substantial cash assets?

Am I missing something here?

 

[gprp]

Thank you for your prompt response . She likes a specific property and asked me for an advice how to increase her chance of success .

 

[beachgurl]

When I was separated I couldn't get a rental. I tried for 2 months and the only stuff I'd get considered for were properties no one else wanted - no fences/gates, very old kitchens/bathroom which was totally unsuitable fid myself and 2 kids under 4. I was earning over 80k and was being beaten by centrelink couples and groups of guys in their early 20s. I gave up looking and told the husband to find somewhere instead.

In this market it wouldn't be too hard in Sydney as it is a renters market.

As your friend is specific on the property tho I'd say the only way is to add the a to the contract. Or have him as guarantor. Otherwise there will always be the single mum stigma and most landlords will take anyone over a single mum.

 

[luckyone]

Thank you for your prompt response . She likes a specific property and asked me for an advice how to increase her chance of success .

Does she have the funds available to offer a number of weeks/months rent up front? That would certainly make her more attractive to me as a landlord. At least you wouldn't have to worry about rent coming in for a while then.

 

[gprp]

Thank you beachgurl and luckyone .

Yes , she's able to offer up to 6 month of advanced payment .
I think she's tried it in the past and somehow it didn't work .
I believe beach ytl is right , otherwise my friend's chances are slim .

I reckon the best approach would be to to apply with ex. and to offer an advanced payment as well to see if a landlord is interested to reduce a rental cost a bit ( the house is empty at the moment ).