Trying to avoid rental fees

Slinky

We're relocating soon to another part of the country and our onward house requires quite a lot of work to it, a lot of it very messy and could be a nightmare to live with. Unusually, there's a couple of houses come up for rent in the same street and we're thinking about possibly renting one whilst the work is done to ours. One is available immediately and seriously overpriced. The other, our preferred option, is over £250 cheaper and not available to July. We plan on moving in July.


If we view before the end of May, will we be dragged into paying referencing fees, or is that only if we make an application for it in May?


Also, both myself and OH have worked long term for our own ltd companies. We own our current home, so we have no references from rentals, and employee references wouldn't be relevant as we'd be providing info on ourselves. We have excellent credit scores. Are we likely to struggle to convince a letting agency that we are a good option to rent to? We don't have a mortgage. We could pay 6 months or more up front, but does that make us look like canabis farmers?

da_rule

It's nothing to do with when you make the application. The ban on fees relates to the date on which the tenancy agreement was entered into (on or after 1 June).

One side effect of the ban on fees may be an increase in rent. Whilst agents will not be able to charge tenants these fees they can charge landlords instead, who may then put rents up to compensate for this.

If you have good jobs and assets (house etc) then you're unlikely to fail referencing etc, especially if you are able to put a sizeable deposit down. You wouldn't look like cannabis farmers if you can provide proof of where the funds have come from.

Slinky

da_rule wrote: »

It's nothing to do with when you make the application. The ban on fees relates to the date on which the tenancy agreement was entered into (on or after 1 June).

One side effect of the ban on fees may be an increase in rent. Whilst agents will not be able to charge tenants these fees they can charge landlords instead, who may then put rents up to compensate for this.

If you have good jobs and assets (house etc) then you're unlikely to fail referencing etc, especially if you are able to put a sizeable deposit down. You wouldn't look like cannabis farmers if you can provide proof of where the funds have come from.

Regarding 'entered in to' does that relate to the date of entry into the property?

need_an_answer

Slinky wrote: »

Regarding 'entered in to' does that relate to the date of entry into the property?

Entered into would mean you expressing an interest in the property and saying yes to it at which point the agent will start the process to rent it to you.

The point at which you may be asked for a holding deposit.

System

da_rule wrote: »

If you have good jobs and assets (house etc) then you're unlikely to fail referencing etc, especially if you are able to put a sizeable deposit down.

The ability to put down a larger deposit down is immaterial. the new legislation sets the amount of deposit at 5 weeks rent for annual rents of 50000pa or less and 6 weeks if over.


Your last years tax returns and credit check should be all you need to supply as part of the referencing process.

Slinky

Simonr66 wrote: »

The ability to put down a larger deposit down is immaterial. the new legislation sets the amount of deposit at 5 weeks rent for annual rents of 50000pa or less and 6 weeks if over.


Your last years tax returns and credit check should be all you need to supply as part of the referencing process.

Oh dear, better add sort out last year's tax return to my ever growing list of stuff to sort out.......


Would a reference from my accountant do I wonder....

System

yes you can also use you accountant for an income reference, the general rule of thumb for affordability is monthly rent x 30 minimum, this for a gross household income and there tends to be little flexibility with regards to this