Renting more difficult than buying!

alexscoines

Seems ridiculous to me, and hoping someone else may have experienced this.

We are planning on renting out our house to rent a bigger house. We have been trying to sell but decided to wait till market picks up and have someone who would like to rent it. Easy so far...

My husband is self-employed (ltd company) and we found it fine getting a mortgage in principle.

However, now we want to rent, we’re being told that because he is self-employed, we won’t be able to get through the reference checker. I questioned whether any self employed people could rent, and she was like - ‘no’. Which is obviously not true... easier to mortgage than rent.

Anybody experienced this??

Comms69

He’s not self employed. He’s a director of a company; big difference.

alexscoines

Comms69 wrote: »

He’s not self employed. He’s a director of a company; big difference.

And how does that effect the ability to rent?

Comms69

alexscoines wrote: »

And how does that effect the ability to rent?

How can I answer that?

But if you are yelling letting agents that he’s self employed; he’s not. And I suspect they have no idea what any of it means.

Slithery

You're not wanting to rent your house, you want to let it out.

Renting is when you pay someone else for the use of their property.

[Deleted User]

I think that must be an inept agency. As long as you can prove income (my ex just took in his bank statements) there are agencies that will deal with you. Some seem to pull rules out of the air, others deal with tenants with a rigidity its almost insane.

Murphybear

I rented a house when I had a business. I got my accountant to confirm I had sufficient income to cover the rent

trailingspouse

They should accept audited accounts and/or your personal bank statements showing your monthly income. They may ask your accountants for a reference.

You'll do much better saying 'my husband is the managing director of X Ltd' than saying 'my husband is self-employed'.
a) it's the actual situation and
b) it paints a much more positive picture in people's heads.


As the people on the front desk of the letting agents are very unlikely to understand the fine detail of what all this means, there's no point in making it difficult for them. I wouldn't even bother mentioning that it's your own company until you're asked.
In saying all of this I'm assuming that you can actually afford the rent and have done your own sums.

nyermen

Slithery wrote: »

You're not wanting to rent your house, you want to let it out.
Renting is when you pay someone else for the use of their property.

Unclear from OP - but I think they want to rent their house out and then (not having anywhere themselves) rent another house in the mean time (perhaps close to where they wish to buy). OP can you clarify? You shouldn't need referencing etc to rent your own house out (ps. Does your current mortgage allow this?)

The point on being a director is very valid - as an employee (and presumably director as well) of a ltd company, he'll get a salary? That is what they'll be interested in.

theartfullodger

alexscoines wrote: »

............. I questioned whether any self employed people could rent, and she was like - ‘no’. .....................

Stupid, ignorant agent. Clearly untrue.


Simple solution: Just go in with last three years tax-returns with declared profits. Those can then be used as basis of income for rent paying ability....



Of course if tax returns show "surprisingly" low profits then, tough, own goal.


My son, self employed, wanted a mortgage: Did tax returns "forgetting" expenses: Passed mortgage test, got mortgage, declared forgotten expenses later.



Wrong of course.

lisyloo

Anybody experienced this??

No.
We rented with ltd company with 1 year of books in 2015.
Had no trouble at all.