More difficult to rent than buy?

[Maybenexttime08]

Seems ridiculous to me, and hoping someone else may have experienced this.

We are planning on renting out our house to rent a bigger house. We have been trying to sell but decided to wait till market picks up and have someone who would like to rent it. Easy so far...

My husband is self-employed (ltd company) and we found it fine getting a mortgage in principle.

However, now we want to rent, we’re being told that because he is self-employed, we won’t be able to get through the reference checker. I questioned whether any self employed people could rent, and she was like - ‘no’. Which is obviously not true... easier to mortgage than rent.

Anybody experienced this??

Who's telling you that?

You might be more limited in choice but of course you can rent. Lots of people without jobs rent

The problem is that mortgage companies have their own underwriters, letting agents have either an overly strict list of criteria to cover themselves or outsource it. And he's not relying only on his self employed income but also your rent income. Is any of his income guaranteed?

Are you in an area with multiple letting agents? If so maybe call around and check what referencing each needs.

Or are you struggling to get the let to buy mortgage?

Thanks @bumbleberries - we have seen a place we’d like to rent (and renting ours out is fine!)

When I rang the agency up today to arrange a viewing I filled her in on who we are etc.

She then said that the reference checks are through a separate organisation and it’s a bit of a tick-box exercise. Because my DH is self-employed, so no guaranteed income going forward (though he has never not had income and can prove that), they wouldn’t be able to use his income to assess our ability to pay the rent. However, my income alone wouldn’t be enough!

Surely a load of rubbish? LOADS of people must be in this situation! Our credit rating is 99.9%, we have proven income history, never had a late payment on mortgage / credit card, can get work references etc, so there must be a way around it!

If you've seen somewhere you like already then that's really annoying.

My first thought would be that she doesn't do the checks (because separate company) so really isn't in a position to tell you you can't rent. Do you know the name of this organisation that does the checks? It might be worth calling directly.

But unfortunately you might struggle. Agent says it's up to the referencing agency, agency say you don't meet agents criteria, both say their hands are tied. It can be a nightmare, and makes you wonder what the point is of starting your own buisness.

I remember when we went through checks i had to say I wasn't planning on getting pregnant! I didn't even think that they were allowed to ask that.

We had this, the only way past was to pay 5 months upfront rent. Is this something you could do?

My partner is self employed and we have no trouble renting? Depends really how long he's been doing it for them to see it's actually a good career that he can keep up with payments I think. (My boyfriends been self employed for 10 years now).

You shouldn't have any extra problems though as long as you can easily afford rent each month. Maybe the landlord is being picky and has specifically said no self employed like they sometimes say no kids/dogs/DSS etc.

Hope you find a great place soon! 💕

We're actually having problems finding somewhere new atm because we recently got a cocker spaniel puppy, and a lot of places we like (with gardens) and non carpeted flooring have said no dogs :(

Which is ridiculous!

I asked my husband to speak to the agent today (as I am whimp and getting stressed) and apparently it is fine - he shows his tax return and than should be enough.

Otherwise we need to show savings that can pay for a few extra months if needed (which in-laws can help us with luckily!).

We're off to see a place on Saturday - am very excited. However, if we take it then I will need to move my kids to a new school which feels really scary at the moment!!!

@adoggmamma - that is annoying! I have asked our potential landlords if we might have a dog in the future, and it seems to be ok.. luck of the draw I suppose!

Adoggymama, we had this problem too(also with a cocker). One landlady changed her mind when 6 months rent was offered up front and another we targeted rural properties owned by a farmer who didn’t mind at all.

We have had similar problems in the past. A small child, a dog and self employed!
Dogwise-go rural.
Self employed- 2 years books or a tax return.
Small child-sell it on the internet?

@moonflower - selling the children would help in lots of ways

Hubbie has tax return from Jan-March 18 (as only set up company in Jan) and then management accounts so fx’d as I have fallen in LOVE with the possible rental.

Worse comes to the worse we will demonstrate savings!

I need to stop looking at furniture though.. just in case it falls apart!

When I bought my house ten years ago, we only did so because it was easier and cheaper than renting. There were so many hoops to jump through and fees involved in renting. To buy, was just the solicitor fees (100% mortgage). I think when you own a home you are out of the loop and don't realise the troubles and costs that renters face.