Self employed reference check

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    Self employed reference check

    Good afternoon,

    Some friends and myself have decided to move into a house next week, but the letting agency has commissioned a referencing agency that has not been very helpful so far, to say the least.

    The property is a 5 bedroom house, and both couples and single professionals/students will be moving in. We decided to send 3 reference applications altogether, although more people will be included to the actual tenancy agreement.

    The individual applications include:

    - 1 EU national (in the UK for 4+ years), self employed for less than 6 months but with a projected income for the first year of 30 000+ (based on the income for the first 5.5 months).
    - 2 English professionals, one in full time employment and the other one self employed for a year, but whose major part of his revenues have been left on his professional account until now.

    The referencing agency declined the two self employed persons' applications, on the basis that less than 6 months self employment and no accountant do not give sufficient financial guarantee. We have offered to send in current quotes that have been approved by clients, along with the clients' contact details, but this has been declined. The clients are government and established agencies with a good reputation.

    The second refusal is based on the fact that most of the person's revenues are on his professional account. The agency requested personal accounts statements only. Once again we offered to provide more documentation (professional account statements) but this has been refused.

    All other checks have been reported to be fine.

    The third application is pending and we are waiting for their decision.

    This situation is very frustrating, especially given that both people who have been refused have been paying for the last year or so a rent equal to the share mentioned on the application documents. This has been confirmed by our previous landlords who gave us a positive recommendation.

    We are now trying to get more 2 people referenced, but get charged £60 for each application. The EU national's possible guarantors are abroad, and therefore will not be considered by the referencing agency. The other (English) self employed will provide his guarantor's details, but again an additional 60 pounds will be charged to us.

    In case the 2 additional applications fail we will need to re-submit application for a lesser share among the people who have been referenced so far, and not declined because of factors such as short self employment or insufficient funds on their personal bank account. The new calculations and checks will require an additional 60 pounds per application.... Giving up on this property means we would have to find another place to live in less than a week...!

    We do understand that given the current economic climate people have to be more careful, but given all I have mentioned above we feel this situation is getting ridiculous and not fair.

    Would any landlords / agencies have any recommendations to solve these issues? Paying a few months' rent in advance would be possible for some of us (especially couples) but not for single people.

    Many thanks in advance.

    Best,
    Will.

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