Reference checks for new tenancy

Uzibat

I'm about to start a new tenancy and have been going through the process of giving references etc. However, the estate agents have got back to me and said that I have failed my reference checks because I am a contractor and my contract officially ends before my tenancy does (my contract is a yearly one, and is expected to be renewed at the end of the financial year). I have passed all of my credit checks, as well as my checks with my previous landlord - I have been renting in my current place for 7 years now, without ever missing, or being late with, a payment. The estate agents have informed me that the landlord says I can still move in if I pay the three months between my contract ending and my tenancy ending up front, or I get a guarantor.

Unfortunately, paying 5.5 months up front (1.5 for deposit, 1 for the first month in advance and then the 3 at the end) is not feasible for me - if I had that money, I'd get a mortgage instead! I'm also going to struggle to get a guarantor, as my parents are both retired now.

I'm in my mid 30s, a professional and have never been late with a rent payment in my life. The conditions being put upon me seem rather severe - surely nobody who was working on a contract of a year or less would be able to 'pass' given these conditions!

Is this normal practice? Asking someone to pay what is 5.5 months up front for a 12 month rental seems ludicrous to me!

Werdnal

I am afraid the LL holds all the cards in these situations. You either pay the arrangement be has put on the table, or you don't get the property.

It may sound harsh, and you may be 99.9% sure that your contract will be renewed, but nothing other than good hard cash may convince the landlord of this, so you have little choice. If course, another agency may not be quite as thorough on their checks and you may be accepted on another property, but you will likely lose the check fees you have already paid for this one.

Uzibat

Is that sort of check/requirement pretty standard practice then? I'm just wondering if it will be the same thing if I go elsewhere.

Werdnal

Uzibat wrote: »

Is that sort of check/requirement pretty standard practice then? I'm just wondering if it will be the same thing if I go elsewhere.

Credit reference checks do vary - some agents are very proactive and will check everything, whilst others do the bare minimum. Likewise, some private LLs want everything, whilst others take a chance. Its not something anyone can categorically confirm - another agent may miss the fact that you are on a fixed contract and only look at your current employment status. After all, any one of us could lose our job during a tenancy.

AnnaV

Can you ask your employer to renew your contract early this year?

Uzibat

Thanks for the clarification Werdnal.

Unfortunately not Anna - all of their contracts run as per the financial year.

I've just spoken to a friend who's suggested that I request a 9 month contract to start off with. That then would finish at a similar time to my work contract, so hopefully will negate the need to pay a big lump sum up front, and we can then negotiate the contract again at that point. Fingers crossed!

AlexMac

Some Agents make lots of dough from punters who allegedly 'fail' ref checks, by keeping the non-returnable admin fee, so try to avoid starting over. Good luck raising the cash if unavoidable