Renting - salary???

[juicylucy87]

Hey. Don't get this 30x salary a month? Hoping someone been in my position. Basically I get 1989 a month salary but I also get commission so when I am looking for rent what do I do as I'm not going to get anything where I live for 680 a month is basically impossible. But commission I can get a house like 1k a month?

Anyone help pls

Is this in you deciding how much to spend, or landlord’s not accepting based on salary?

The estate agent I rent through determines financial affordability by asking for renters to earn at least 34x monthly rent.

ETA - op - will they accept statements showing typical bonuses or a letter from employers to that effect?

Ah I see, some of them here do, others don’t.

Lots that do will not include commission for affordability checks as it’s not guaranteed income but I do know that some will factor in commission if you can show your earnings from the last tax year, or if you can provide 3 months payslips showing how much you were actually paid.

It will depend on the estate agent though in each instance so it’s worth checking OP to see what their stance is.

Sorry I have no idea, but it's so shocking how competitive renting is and I hope you find somewhere soon

Crazy isn't it guys and it's unfair as I have pay slips to show what I get. Like it's like saying your self employed none of your salary counts!

OP is that earnings sum before or after tax?

I’m sure the estate agents calculations are based on a pre-tax figure.

Yes before tax and even my salary I get 1989 which I know compared to the average wage being about 1500 a month it's impossible even at my wage my affordability would be 680! Not even getting a room for that around here

We started renting while we were trying to figure out where to buy, and despite making a lot more than 30 times the rent (more like 125 x!), the estate agent made us jump through hoops, had to show payslips, employment contracts, bank statements and so much more. It was ridiculous.

OP isn't your £1989 salary divided 30 £795?

But yes I'm pretty sure you can submit proof of your regular commission too.

A landlord I know admitted to me he'll always pick the applicants with the highest earning and most secure sounding jobs.

Had to do that 2 years ago. 3 months full bank statements with nothing blanked out (just as well I don't have an Ann Summers habit, huh?), our FULL credit reports (which were 130 odd pages). I did a bit of investigating as to why the requirements had got so utterly absurd back in 2021, and I believe the bulk of it is off the back of insurance companies/mortgage lenders, not the actual landlords or estate agents. One potential lease wanted 6 weekly inspections, ffs. That's not work an EA wants to do, that's got to be the mortgage company or LL's insurance.

It all happened after Covid and furlough.

Standard affordability is a salary equal to 30 x the monthly rent. So if rent is £750pcm you need a salary of at least £22,500.

£1989 isn’t far off minimum wage, so unlikely to qualify to rent in a lot of areas on your own.

My BTL is a little 2 bed at £1150 and minimum salary I accept is £34,500 per tenant (if joint), although I have flexed on that slightly where there are joint tenants and one earns more than the other although they are equally liable for the whole rent.

I always choose 2 working parents over 1 working parent as I think if 1 parent lost their job there would still be 1 earning.

Saw an ad on an agent's website today.... 30 x salary or for SE signed by an accountant my books for 2 years.. I do my own books and have done for over a decade!!

I am a landlord so I’ll give you my perspective.

Any prospective tenants go through financial vetting process which include a credit check via experian, proof of employment with salary and also a bank statement for the last 3 months. The bank statement confirms whether or not you can afford to pay the rent. The proof of employment with salary will usually show basic salary but can often mention if you have any other financial benefits on top (bonuses, commission, overtime) - depends if they are contractual though.

The bank statement would be the one I’d be interested in though as it demonstrates if you can actually afford to pay the rent with all your general typical outgoings!!

Good96 I'm not going to lie I get you have to look after yourself but that's really messed up and personal asking for someone's bank statements

It actually is not…. Most letting agents actually ask for it too - they need the assurance that you can afford to pay..

Similar to when you apply for a mortgage, they ask to see payslips and bank statements.

@good96

You deserve to see earnings and references. Analysing and judging prospective tenants' personal spending habits is intrusive and despicable.

It’s not the case of ‘deserving’ - I don’t really care what people spend their money on. All I want to know is that the tenant can afford to pay. You could have other outgoings and financial commitments.

Take a read of this article from Shelter -

england.shelter.org.uk/housing_advice/private_renting/how_landlords_and_letting_agents_check_tenants#:~:text=Landlords%20and%20agents%20usually%20want,recent%20payslips%20or%20bank%20statements

Screenshot below

If people have a good credit rating, references from previois landlords, and a proven income there is absolutely no need for you to demand to see how they spend their money.

That should be proof enough.

Morally you are wrong to ask to see their bank accounts if the other documentation has been provided.

If you demand otherwise, good luck to you. But you are wrong.

It’s nothing whatsoever like applying for a mortgage, you are not giving the renters hundreds of thousands of pounds.

As far as I can tell it is cheapskate landlords and letting agents who demand all this information so they don’t have to pay a proper referencing firm.

OR you have to keep all this information for LL insurance that covers non payment.

Please correct me if I am wrong and if you additionally pay a professional referencing agency. I would really like to know.

You sound like a person I wouldn’t rent to anyway. No one has ever had an issue with it…

No one has ever told you they have an issue with it because they have to put up with a LL’s insane, intrusive demands in order to get a home. Of course they won’t tell you.

>You sound like a person I wouldn’t rent to anyway.

Oh no! How will I ever recover from such a hurtful slur!

I notice you didn’t answer my very specific questions.

😂

Typical😂