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Income needed for £750/month house rent

MoneySavingUser
Posts: 1,667 Forumite
I am interested in renting a house which is £750/month
My salary is only £20,000 so I doubt I meet the salary multiple needed - however I have a large amount of savings a few times the amount of my salary.
How should I approach this with the agent - should I just say I have £x of savings or would I need a guarantor?
I have read that the referencing agency that some agents use automatically rejects people without say 3x the amount as salary - can I get around this?
My salary is only £20,000 so I doubt I meet the salary multiple needed - however I have a large amount of savings a few times the amount of my salary.
How should I approach this with the agent - should I just say I have £x of savings or would I need a guarantor?
I have read that the referencing agency that some agents use automatically rejects people without say 3x the amount as salary - can I get around this?
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Comments
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Last time I looked into rented about 2 years ago (we possibly needed a 6 month let between selling and buying a house), I was told I needed to earn 26x(monthly rent). This would be £19,500 for a monthly rent of £750, so you might be OK if this is a normal rule?0
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According to this...
http://www.tenantverify.co.uk/rent_affordability_calculator.htm
You need to earn £22,5000 -
Forgot to say that I don't think savings will help as the EA will probably insist on you having a regular/reliable income OR guarantor.0
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Try offering to pay the first 6 months' rent up front out of your savings. I did this when I was in the same situation as you and the EA was fine with it.
I, on the other hand, p*ssed away a lot of money on a rental I couldn't really afford.0 -
i think you may be stretching yourself with a rent of £750. At 20k you'd have an after tax salary of around £1370 excluding any pension contributions. Once you add say £100 council tax, £50 utilities and say £50 a week on food and drink and then petrol/bus on top of that you'll have very little left for actually enjoying life and saving for the future.0
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id agree youd need at least 22k. you'd have no life after all bills and council tax. stick to £600 max.
better still go private, but you'd have to hunt a lot more, but you do find some 'non profit' landlords with decent rent.0 -
Given you have such substantial savings, why aren't you buying?0
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Given you have such substantial savings, why aren't you buying?
Thanks for the points everyone else0 -
I imagine it varies between letting agents. Ours three years ago wanted to see 2.5x yearly rent as yearly salary.
As a self-employed person with no formal accounts at the time I couldn't prove income by any means they found acceptable, but in the end they agreed to 2 months of rent as deposit. I was prepared to pay the first 6 months if necessary. The other option would have been a guarantor.
Unless they are inundated with potential renters they will probably agree to ask the landlord if either of those options are acceptable, since it is ultimately the landlord's decision.0
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