Renting Property - Affordability / Guarantor

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    Renting Property - Affordability / Guarantor

    Want some advise how the affordability criteria works as going to apply for a rented property potentially tomorrow.

    I am currently unemployed due to unwell son. The rent on the property is £600. The letting agent {Mod - letting agent name removed} has advised I need to be earning £18k. Just considering my options at the moment on how to proceed with my application.

    Due to unwell son I get certain additional benefits so wondering if letting agents count benefits as income or does it differ from agent to agent. I did briefly ask if they do and they confirmed they will but need to confirm tomorrow when I view the property for the second time.

    I currently get Disability Living Allowance for son, Carers allowance, Child Benefit and Child Tax Credit. The annual income from that equates to £16,500k. I used to to get Income support but I started a self employed job (cant count as income as only been 8 weeks) so therefore Income Support stopped. I will be moving 60 miles from current home therefore will no longer be working (Delivery Driver). This would mean I will get Income Support again which will take me above the £18K threshold. I aim to apply for Income Support again next week as work has dried up so will no longer will be working.

    My question is do letting agents count benefits as income and do you think they will count my benefits as income? Does it differ from agent to agent. Also will they take into account the Income Support although it has stopped. If not what are my options? I can get a guarantor who earns above £18K. Are Guarantors used in this instance? Anyone had experience with {Mod - letting agent name removed}? what are my chances? They use. homeLet for tenant referencing

    Opinions appreciated so I am prepared for tomorrow

    I currently own my home with a mortgage. I will be renting out my property so future income. Cannot buy as wont be able to get another mortgage as cant work full time due to unwell son. Moving closer to family for support. Unsure if this is checked but last time I checked my credit rating score was about 990.

    #2
    Do the estate agents/landlord know that all of the money you receive is from benefits and that you're not working?
    "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

    What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

    Comment


      #3
      Not yet. I will be telling them tomorrow. Initially my brother was moving in with me who works full time. He may/still considering. So they think he is but will tell them tomorrow he may not. If it means I only get this house if he moves in so I can use his income so show I can afford then he will move in otherwise I want to try and rent it without him.

      Could give them both options and see what they say. My preference would be without him If without him I can use him as guarantor. Hope all this doesn't sound strange but in a tough situation as son not well and we need family support.

      What do people think? How and what can I say to them. Are letting agents usually flexible and discuss different options. If it was a private landlord or an smaller estate agent I'm sure we could have worked something but being part of larger agency unsure if they will have certain rules and regulations to follow as instructed by head office. Will a no mean a no or will there be certain degree of flexibility. At the last resort I could offer rent in advance but only if all avenues have been explored. Hope im not sounding confusing but somehow I need to pass and get the house lol.

      Once there as we will have family support I can look for a permanent job.

      Comment


        #4
        It is entirely up to the landlord/agent to decide if he wants to let to you or not. I'd doubt they will, but ask, calm & polite, offer all the info, see what happens.

        Good luck, whatever happens: You're having a rough time...
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          Do you doubt they will not let me rent the property due to my income based on benefits only? Can a Guarantor not be used in this instance? Other option is then to let with my brother. It could be done under his name and put myself and family as tenants.

          I did ask when I viewed the first time (was without partner - Hence view again) whether they would they include my brothers income and my benefits income together and they said they would. Wether they would agree to that or not is another matter as I'm sure she only shows people around and not the one who decides.

          Hopefully they can clarify before I submit my application as there is a £195 application fee (joint application) which is non refundable even if we fail the reference/credit check. If I apply with my brother as well I have to to pay another £130 (single application). They advised as there will be 3 adults we have to pay for all 3.

          Comment


            #6
            Be upfront & truthful. Then ask if they prefer 6 months rent in advance or a Guarantor.
            LLs dislike Ts solely on benefits due to poss sanctions/entitlement changes, Agents tend to stick to their automated checking, for which you will have to complete an Application form.
            Good Luck.

            Comment


              #7
              Viewing was Saturday. Travelled 60 miles with Kids and unfortunately the estate agent bought the wrong key. Was so peed off. Office was closed so couldn't go to office and collect correct keys. Now have to go on a weekday with kids unfortunately. Told them about my benefits and they advised Id need a guarantor and it would be up to the landlord if he will accept me or not. Hopefully agrees if we like it. Still unhappy they bought wrong keys therefore have to make the journey again.

              Comment


                #8
                it might be a good idea if you can write a personal letter to be forwarded to the landlord to support your claim. a handwritten letter would be better than a printed one (but only in my opinion!!) it might help the landlord to understand your issues and your history - much better than asking third party to relay all the relevant information you want the landlord to be aware of

                Comment


                  #9
                  LLs can only rely on G's for the fixed term and still needs a binding G Agreement. T normally pays for G checks.

                  Comment


                    #10
                    Viewed two houses today. First absolutely perfect. Perfect for my son with additional needs. Nice and spacious. Our house is small and first house was much bigger so perfect for us. Second house smaller. We'd struggle with storage as limited space especially kitchen plus no garden so not ideal with 2 kids.

                    I immediately applied for the first house as saw it as long term house as was fully furnished as well.
                    I did write a supporting letter explaining my situation. Estate agent thought it was well written. Submitted all info to landlord confirming I have a guarantor in place. Landlord refused. I then said my mate will move in with me who works full time and will cover the rent. Landlord refused again. Last attempt as I needed that house. Houses of this are size for this price in this area are extremely rare. We'd been looking for about a year to be honest. Most usually too expensive therefore put offer that I would pay 6 months rent up front. To my astonishment landlord refused. Don't understand the logic behind his refusal. Estate agent also couldn't understand why and could understand how badly we wanted.

                    At this moment in time we feel second house would be too small.

                    Absolutely devastated. As I said houses are rare in area we want. Ah well wasn't to be. Keep looking I guess. Due to sons conditions he needs space. Prob only thing I didn't put in letter but doubt it would have made a difference.

                    The only reason I can think of is the impression of people on benefits plus he knows house will go as houses in this area go within couple of days. They had 8 viewings already arranged. I enquired about another house and they had 20 people interested within 2 days of listing.

                    Sorry for long post.

                    Comment


                      #11
                      Originally posted by techcorp View Post
                      They had 8 viewings already arranged. I enquired about another house and they had 20 people interested within 2 days of listing.
                      First house you saw, they have to say no to 7 out of 8.
                      Second house you saw they have to say no to 19 out of 20.
                      So if you don't get any, you will be one of 26 that did not get any of the two properties.

                      Can you imagine 2 properties getting 26 letters begging for the property !

                      Sorry, but it's a business, and landlords have to choose what looks good for them, not what's good for you.

                      Comment


                        #12
                        First house I was the first person to view. The other 7 had viewings arranged/shown interest. I submitted my application before any of the other viewings took place so he didn't have any applications to consider at this point . 6 months up front rent what more can you ask for. Its a business of paying rent and I was paying him 6 months in cash. That's the whole tenancy covered for most as I'm sure you start off with 6 months. Doubt anyone would offer that. I mean why would anyone wanna refuse that.

                        The 20 viewings one was not the second house. Just another I enquired about.

                        Comment


                          #13
                          Do you know how many jobs I applied for when last on JSA?
                          Virtually none had the courtesy to reply.

                          No LL is going to accept the first person to complete an Application, without checking all.
                          It's not a Council bidding scenario

                          6 months rent in advance offer - is prospect a stooge for an 'indoor farmer'?

                          Life ain't easy.

                          Comment


                            #14
                            I understand your problem, but you cannot decide who the landlord takes.

                            However, when I saw an advert for my last job, many years ago, I rang up and asked for an application form and they said they had so many applicants they were not taking any more applicants.
                            It was the time when many engineering firms had closed so there was a pool of engineers.

                            I was in the opposite position to you. I knew my personal skills were in demand and I would be suitable for the job, as it was specialist vocation, and not many applicants would have my background in the job offered/
                            I don't take no for an answer, so I drove to the firm and handed in my application, with covering letter.
                            Two days later, the department boss called me in for an interview, not the personnel department ( HR) and I started the next week and had a happy 10 years employment.

                            I knew I would be at the top of he list, but I still had to fight to secure the job, and force my way to the top of the list by the contents of my letter, including a copy to the department boss telling him my application was in the personnel department.

                            You are in the opposite position, and will be on the bottom of the list of people who will be considered, especially as you also have your own house.

                            Important.

                            You may be getting the mortgage interest paid on your house. I did when I was unemployed, less £ 5.
                            This will cease as it will not be your main residence, as you will be claiming benefits for another property. You cannot claim for 2 properties.

                            You can't pay your mortgage for the first 2 months when you vacate, as you won't have instant rent coming in. You have to pay an agent to run your property, and find a tenant.
                            Your rent, when you receive it is not income, it is money coming in to pay your mortgage In full, plus repairs, maintenance, and fixing items that you need as a Landlord that may be acceptable to you, but not acceptable to tenants or the Law on letting.

                            You must get permission from your mortgage Co. to let out your property.
                            You may have to prove you earn, - yes earn enough money to pay the mortgage if your tenant refuses to pay the rent for the last 4 months.
                            Can you do that ?

                            Your mortgage terms may change, may even increase as you are effectively a Buy to Let customer, AND the rent received must be at least 125% of the monthly mortgage.
                            If any tenant of yours does not pay, you will HAVE to divert funds to pay the mortgage, and that may have to come out of your rent money you pay for your rented property you move to, so that is another concern for landlords that sometime you wont have enough money to pay your own rent.

                            You must see your situation does not lend its self to allow you to do what you want.
                            You have to accept your situation that you are not a good bet for landlords.
                            This is fact.

                            I hope you may find accommodation, but check all above before you do anything else.

                            Comment


                              #15
                              Originally posted by techcorp View Post
                              First house I was the first person to view. The other 7 had viewings arranged/shown interest. I submitted my application before any of the other viewings took place so he didn't have any applications to consider at this point . 6 months up front rent what more can you ask for. Its a business of paying rent and I was paying him 6 months in cash. That's the whole tenancy covered for most as I'm sure you start off with 6 months. Doubt anyone would offer that. I mean why would anyone wanna refuse that.
                              Because someone else may somply offer more or a better deal.

                              I do multiple viewings on my properties - typically I get (let's say) eight viewings (not in London).
                              Half are shopping around, and three are interested.
                              I don't even consider any offers until a day or so later, so all of the interested parties have responded - x percent of the time, someone who really wants it offers more than the asking price or are in a considerably better situation (school age children, no pets, moving into area for new job with someone I expect to stay in business).
                              Being first makes no difference to me.
                              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                              Comment

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