Advice on renting

Simba-ali34

Hello,

I have never rented before and I am looking for advice on the procedure? Me and my partner earn about 1900 pcm between us. Properties tend to range from 900 - 1200 pcm around my area, am I likely to run into problems such as landlords not thinking we earn enough etc? I have never had a credit card so credit history might be an issue? I have about 8 months to prepare before I start looking

Regards

Simba-ali

Brightspark87

Hi, if you go for the more expensive end of the market - £1,200 dont forget to add council tax, water and utility bills. Therefore it doesn't seem very affordable. Why is the joint income so low? Do you not get tax credits?

tomtontom

Unless they have children their income is too high for tax credits.

Brightspark87

£1,900 between them? Chances are one of them could be below the threshold. many jobs are £12-15k a year.

Simba-ali34

I do have children, I have never looked into tax credits just because I have never needed them. The situation I
I am in is that I have quite alot saved so the chances of me getting council housing is very low so they tell me to go private rent or Go on help to buy. In the short term I wanted to rent for a year to understand how much I can afford etc. Then hopefully apply for part buy part rent. at the moment i have enough in the bank to pay bills and rent it's just understanding if a landlord would see my earnings as too low and reject me? I was thinking to rent on the lower end of that range. So like 950pcm?

Regards

Cycrow

Remember to have some money available for the move, usually you will need about 2.5x the rent, which will cover the first months rent plus the deposit, then you will need some extra for the fees.

i think £1200 rent may be pushing it on that salary. is the £1900 the take home pay ? (ie after tax)

Simba-ali34

2.5x the rent is fine, like I said I would probably aim for more 950 - 1000pcm. Is that more achievable?

HappyMJ

Simba-ali34 wrote: »

Hello,

I have never rented before and I am looking for advice on the procedure? Me and my partner earn about 1900 pcm between us. Properties tend to range from 900 - 1200 pcm around my area, am I likely to run into problems such as landlords not thinking we earn enough etc? I have never had a credit card so credit history might be an issue? I have about 8 months to prepare before I start looking

Regards

Simba-ali

It will be close.

Agencies and landlords tend to work it out that you need to earn 30 times the monthly rent as annual salary.

If it's just you or your partner working and earning a salary of £29,000 you would be taking home £1,900 each month and could afford to rent a property up to £967 per month so your lower end of the market is affordable.

To afford to rent at the upper end of the market at £1,200 per month you need to be earning a gross salary between you of £36,000 or £18,000 each taking home nearly £1,280 a month each to be affordable.

Simba-ali34

If it got rejected due to what HAPPYMJ just said is there anyway of getting it accepted by using savings I have? Like 3 months rent upfront?

Regards

cloo

I think it could be worth offering a few month's rent upfront -shows you're reasonably solvent, even if not well paid.

HappyMJ

Simba-ali34 wrote: »

If it got rejected due to what HAPPYMJ just said is there anyway of getting it accepted by using savings I have? Like 3 months rent upfront?

Regards

6 months is the usual figure. You'll be paying for 1 month anyway on move in so it's an extra 5 months rent you'll need. You need to show that it is your money that you hold in a bank account and you're not putting the rent on the credit card.