PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Renting more difficult than buying!

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??
«1

Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    He’s not self employed. He’s a director of a company; big difference.
  • 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
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    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
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    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.
  • 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
    Murphybear Posts: 8,019 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I rented a house when I had a business. I got my accountant to confirm I had sufficient income to cover the rent
  • 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.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • nyermen
    nyermen Posts: 1,139 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    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.
    Peter

    Debt free - finally finished paying off £20k + Interest.
  • ............. 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
    lisyloo Posts: 30,090 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Anybody experienced this??


    No.
    We rented with ltd company with 1 year of books in 2015.
    Had no trouble at all.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.4K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.3K Work, Benefits & Business
  • 599.6K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.