Letting agents asking how much we earn

pinteresque

I am looking for a new flat to rent in North East London and there seems to be a common thing with the letting agents in that area whereby they insist on asking how much me and my partner earn and what we do for a living, before even talking to us aout the property we are are enquiring about.

One guy said that there are certain thresholds of earnings for certain priced flats. EG to rent an 850 pcm flat a houshold must be earning over 27k a year.

This all smells fishy to me. I don't think our salary has anything to do with them, at least not in the first instance of viewing a property we are interested in! It surely is up to us to decide whether we can afford a property or not. However I am apprehensive about not making it look like I've something to hide...

Anyway I womdered whether anyone else has experienced this and whether it's a common thing?

Guest101

I would explain to them that my financial earning are not their concern, I confirm I can comfortably afford the rent and they are welcome to carry out credit checks once i've applied. Until then, i'm simply asking to view the property - if it meets my high standards I will consider an application.

But that's me and my principles.

Their figures arent really wrong regarding income and rent etc.

ognum

This is very common among letting agents, they need to insure that the tenant has sufficient funds and most landlords would require their agents, the letting agents to establish this before they would allow a tenancy.

Hence the need for work references detailing your income. You may not like it but you will find it difficult to get a flat without it but no harm trying.

dancingfairy

Its similar to the income multiplier used for mortgages. Letting agents want to know that you earn enough to pay the rent. I think the average is about 3 times rental as salary. I assume the agents ask to weed out people who would fail this in the credit check and to avoid wasting everybodys time. You should ask them what income multiple they work on and whether it is set in stone to establish what the current going rate is.
df

LondonDreamer

I haven't had an agent ask prior to viewing but the minimum income level is standard once you get to offers and applications. I'm guessing that agents in your area might have gotten a high proportion of people viewing properties above what they can afford in the past, so are trying to save time now by asking up front.

And as another poster said, the figures you've been quoted sound about right. As a guide, it's usually around 2.5 to 3 times the annual rent. My current agent worked on 30 times the monthly rent, and this was asked prior to submitting our offer to the landlord.

pinteresque

Yes I of course understand the need to credit check a potential tenant and check they have the means to pay rent. But at least five different LAs I have spoken to in the area have asked me up front what my salary is, and I think I don't need to tell them until I decide to put an offer in.

As for the whole 3 x rent thing... No way do we meet this requirement, have never done so, and we managed to secure our current one bed fine. All of my mid-late twenties friends rent flats and neither do they earn 3 x the rent pcm. If we can make rent we can make rent.

G_M

It's not just letting agents.

As a landlord, I would not consider granting a tenancy to someone without knowing they can afford the rent.

Indeed, I would not just ask about salary, I would then seek to confirm it, whether via employment contract, employer reference, bank statement etc).

True, I would do this after the applicant had viewed, and expressed a desire to rent from me.

But I would doing viewings for a limited number of prospective tenants, for a single property.

A letting agent is arranging viewings for many many tenants, for many many properties. He does not want to be wasting his time showing properties to people who will not be able to afford them.

Indeed, by pre-vetting, the agent saves the prospective tenant from wasting his time as well as himself.

Kynthia

As far as I understand it a credit check doesn't confirm you can afford the rent, it confirms you don't have a history of not paying your bills, which is different. Before I would let you into the most expensive asset I own, with no ability to remove you without going through the courts and bailiffs which could take up to six months, in which time you could do thousands of pounds worth of damage as well cost me months of lost rent should you not be paying it, I would at least want evidence that you could afford it!

Now if you don't have the salary they are asking for but have evidence that you've paid that level of rent with no problems and have references from happy landlord's backing that up, then I would be interested.

Werdnal

It sounds to me like OP is taking exception to being asked their salary at the point of first enquiring about possible viewings on rental properties, rather than the full blown vetting, reference and credit checks which are the norm before granting a tenancy.

I can see it from both sides - why would anyone want to divuldge their salary to a complete stranger when merely looking at properties (I wouldn't personally bother me, but I can see how some might take offense). However, as GM says, Letting Agents are doing dozens to viewings a day and they don't want to be showing someone a 6 bed mansion with swimming pool, when they can only afford a 1 bed studio flat!

I know a chap who used to put on his best suit and get his missus to dress up, and go to a local executive car dealers, pretending to have £1000s to spend on the latest top marque sports cars they deal in. He'd spend a few hours with their salesmen running in circles and falling over themselves to take him out on test drives, with no intention of buying anything - nice afternoon's entertainment at no cost to him. I am sure there are people who do the same with house viewings, whether it is to rent, or to buy.

Agent is within their rights to ask you, and you are obviously within your rights to refuse to tell them, but expect to have ti justify and prove your earnings when you finally apply for a property.

[Deleted User]

I have been in 3 tenancies so far, first was £550 per month and if I remember correctly I had to earn at least £15,000 per year, the second was £1500 per month and I had to earn at least £54,000 per year and the current tenancy I am in is £950 per month, they also requested my salary but did not ever make a requirement clear, although I assume there is one. This was always at the reference check stage of an application. I did inquire about an apartment (in London) for £2500 per month and they only wanted £70,000 per year salary so it doesn't seem to always be a 3x multiplier.

I would certainly not provide my personal information at the first point of contact (viewing), I would be happy to confirm I could afford (eg: My salary is greater than x) however I would have no problems providing any important information once I have expressed an interest in the property and wish to enter into a tenancy.

pinteresque wrote: »

As for the whole 3 x rent thing... No way do we meet this requirement, have never done so, and we managed to secure our current one bed fine. All of my mid-late twenties friends rent flats and neither do they earn 3 x the rent pcm. If we can make rent we can make rent.

Depending on the rental amount a reference from previous landlords confirming that you have never had any problems paying rent may be enough to reassure an agent.

I would guess it depends largely on the amount of rent, for example at the low end of house rentals (depending on the area) you may be looking at between 500 and 1000 per month, obviously someone looking to rent a house at 500 per month is probably not going to have high earnings and subsequently won't have high expenditure so x 2 salary might be affordable.

Someone looking to rent a £1500 per month house with only £2500 per month income will indicate they are living way beyond their means. Someone spending £1500 per month should be in a position where they can afford to save money and live well: not scrape by.

sandsni

bazaarbid wrote: »

This is not very common but it happens. It happened to my sister-in-law once and she was almost cheated. These guys either are very slective or have anythinmg else in mind. Better yiou find a certified real estate firm. They will show you homes and can also arrangev for finance you require after the selection is finalize on your part. Let them know the amount you need to loan as soon as you confirm them about your home selection.

The OP was taking about renting property, not buying. I'm guessing your suggestion is based on someone viewing with the intention of buying.