Refused rental due to the fact I am on a contract!!!

ashley79

Hi everyone

Massive help needed as I feel a little hard done by.. well massively. I found a flat I wanted to rent through and agent and was told to pay £100 non refundable for a credit check. I expressed my concerns as I was not on the electrol register at my current place but was assured this should not be an issue if i can supply proof of address which I did for the last 4 years.

I got a call from the agent saying my credit check was OK and addresses were fine but I failed on the fact I am a contractor not a permanent member of staff. My contract rolls every 3 months. why is this a problem? I have called another agent and they said it should not be an issue.

Have I been swindled out of my £100 or can I fail as I'm a contractor and if so why is that not clearly stated. there was a section for contractor on the forms I filled out. Shall I pursue this or do I not have a leg to stand on. I want to go to the police or something less acceptable.

Please advise me as to what to do next. for my £100 I want a copy of the credit check?

BitterAndTwisted

The landlord can decline to accept you for almost any reason they like although it sounds like the agents have made a nice profit on your credit-check fee. Have you asked the agents whether they have other properties owned by other landlords who might be agreeable to renting to you as a contractor? Have you any savings so you could offer to pay six months rent in advance if that would give the LL any comfort?

BitterAndTwisted

ashley79 wrote: »

Have I been swindled out of my £100 or can I fail as I'm a contractor and if so why is that not clearly stated. there was a section for contractor on the forms I filled out.

These are questions you should asking the agents, not us!

ashley79

It was not the landlord that rejected me I don't think. i was told it was the credit check came back fine except I am on a contract so I cant move in. In all fairness I am a permie just on a fixed term contract that rolls every 3 months. £100 is not like a fiver. credit checks are free. I don't mind paying it if I got the keys but I feel like I got £100 in my hand chucked it up in the air and walked off.

I dont have 6 months stashed away or I would be using it to buy a house not rent.

Cheers for your input... nice work.

BitterAndTwisted

The agents act for the landlord and it's their final decision about taking on any tenant. Sorry, but you're really not a permie or you'd have a permanent contract. In these recessionary times it'll be the temps and contractors who get the push first if anyone has to go as they're the least expensive folks to get shot of. And no, credit-checks are not free: they don't cost the agents £100 but they're in business to mark up fees, alas.

It could be that the reason you were declined was more to do with the industry you work in than solely your status as a contractor. The landlord might view your industry as being much more volatile than others

ashley79

Yeah could be a number of reasons. Im a recruitment consultant onsite. Nothing is safe in all fairness when it comes to work whether your are a contractor or perm. I understand they need to protect themselves but then there should not be an option for contractor on the form if I am going to get declined for this sole reason even thought they took the money. That's my issue. Stuff the flat, it does not cost £100 to reject/decline a customer. the banks don't charge a fee every time you apply for a loan that gets turned down.

thanks for your advice on this. i guess I wave goodbye to my money.

mustrum_ridcully

ashley79 wrote: »

Yeah could be a number of reasons. Im a recruitment consultant onsite. Nothing is safe in all fairness when it comes to work whether your are a contractor or perm. I understand they need to protect themselves but then there should not be an option for contractor on the form if I am going to get declined for this sole reason even thought they took the money. That's my issue. Stuff the flat, it does not cost £100 to reject/decline a customer. the banks don't charge a fee every time you apply for a loan that gets turned down.

thanks for your advice on this. i guess I wave goodbye to my money.

However you could warn the general public about letting agent by posting their name and location here. After all £100 is very poor value for money and MSE is here to help people save a few bob.

:whistle:

G_M

You did not 'fail' the credit check. Credit checks do not give a pass/fail, they simply provide information about you to the LL (or his agent). It is then the LL's decision whether to rent to you or not, based on all the information he has (though some LLs delegate this decision to their agent).

If the LL (or his agent) prefer to rent to someone in fulltime permenant employment, which clearly provides more security for the long-term commitmen to pay rent, then that is their choice.

It is, however, always worth being very upfront with LLs/agents about ALL your circumstances before paying for a credit check. If you had a CCJ, for example, when this showed up on your credit check many (most) LLs would decline you. However, if you discussed it openly first, the LL might say "well provided everything else is OK I'll overlook that 4 year old CCJ". Then it would be worth paying for the credit check.

docmaggiemay

BitterAndTwisted wrote: »

The agents act for the landlord and it's their final decision about taking on any tenant.

I assume you mean it's the landlords decision, not the agents. I am currently in dispute with my agents who have told me they checked out a tenant ok when in fact the check showed nothing of the sort. The agent told me he made the decision and that if thought it was ok he'd recommend the tenant despite what the check said. I think it's my decision as a landlord!

I wouldn't necessarily refuse a tenant on a rolling contract, but I might ask for more information or perhaps some additional security. I'd want to be fully informed though.

docmaggiemay

Also the referencing process should be about more than just a credit rating. It also should include checking references, previous addresses, confirming employment, income etc. That's why it's more expensive than what the banks do. 100 sounds a bit much though -as a private landlord you can get them done through various agencies for about 70 for a full reference, 30-40 for a more basic one. But it depends what they did.

tbs624

Write formally to the LA requesting a partial refund.

Had they asked you specifically about your employment? You say that there was a specific box on the form which they ticked?

If they are experienced & regularly use that 3rd party agency then they should know that those on temp contracts may be turned down and warned you of this.

A third party check costs anywhere from around 15 quid to 50 quid. Most LAs wouldn't even start on other refs until they had that check back.

The alternative is that you consider downloading the LLs name and address from the Land Registry(4 quid fee) and try talking to him/her direct. It is always possible though that its the LL him/herself who has decided that its not a risk s/he wants to take.

Contact the local Council for a list of Private sector LLs who self- manage so that you get to talk to the organ grinder, rather than a monkey. Many self managers don't charge more than the actual 3rd party checking fee.