Tenancy income requirements

cutey1983

I have just been turned down for a viewing request because I do not earn 36 times the property’s monthly rent. However numerous online sources state income should only be 30 times.

Could the fact that I am self employed be the reason why the estate agent raised the figure?

anselld

The agent/landlord can set whatever criteria they want.  It is more likely due to increased cost of living, energy, etc.

Mr.Generous

The agent or landlord can use whatever criteria they want. I wouldn't get hung up over it, if they had loads of people wanting to view they will either pick half a dozen or so, or raise the criteria to filter out a few more. Some landlords - maybe the wise ones - will pick tenants who have a steady income and can afford the rent - but not a huge income or they move on much quicker. Every change of tenancy costs a landlord more than you'd think. For example having one tenant for 2 years paying £600 pcm probably better than having 2 who paid £650. Tenants tend to either pay the rent because they are fair decent people or not pay because they aren't in my experience. You just need to convince the agent or landlord you are a good prospect as a potential tenant. Your chance will come, properties coming up all the time.

cutey1983

Thanks foranselld said:

The agent/landlord can set whatever criteria they want.  It is more likely due to increased cost of living, energy, etc.

Thanks for your reply. I thought this may be the case. The agent did say it is a higher figure for the "landlords insurance", which I presume is down to the rising cost of living.

I'm in an awful situation right now. I am struggling to keep up with the rent and bills on my current flat and my landlord wants to renew at an extra £50 p/month, but I don't earn a high enough income to be approved for a tenancy on a cheaper property that meets my standards. 

So I have no choice but to renew on a flat that I can't afford purely because I don't earn enough to move out. The irony!

On top of this, I am suffering with poor mental health (depression and anxiety) that negatively impacts my ability to earn more money. I have zero disposable income each month and a minimal basic weekly food budget, which is in turn making me more depressed and unable to improve my finances. It's become a viscious circle

saajan_12

cutey1983 said:

I have just been turned down for a viewing request because I do not earn 36 times the property’s monthly rent. - that's effectively 3x the annual, which is a sensible starting point unless things get desperate. However numerous online sources state income should only be 30 times. - there's no "should be". Its what the LL chooses to give themselves a good chance of getting rent paid (and possibly also what an insurance company requires if they get a rent guarantee policy)

Could the fact that I am self employed be the reason why the estate agent raised the figure? - possibly, if your income is gross income before expense and/or pre-tax while others might be looking at their salary and/or take home pay which has no business expenses / tax to take off. 

Its up to the LL what tenant they want to accept. Your options are to look at cheaper properties or with LLs who have more relaxed criteria. 

[Deleted User]

Approach a different estate agent who may have more suitable income requirements. 

36 times? I guess this could thin out the field if demand is high. It might also reduce risk of non payment given tge cost of living crisis.

sourpuss2021

Given the rise in energy prices, it would make a lot of sense if the affordability calculation for tenancies changed so that it included bills as well as rent!

Affordability would be, say, 30x Rent + Estimated bills.

Council tax, water, broadband are fairly knowable. There could also be a median estimate of likely gas/electricity bill based on the latest price cap.

Voyager2002

cutey1983 said:

Thanks foranselld said:I'm in an awful situation right now. I am struggling to keep up with the rent and bills on my current flat and my landlord wants to renew at an extra £50 p/month, but I don't earn a high enough income to be approved for a tenancy on a cheaper property that meets my standards. 

So I have no choice but to renew on a flat that I can't afford purely because I don't earn enough to move out. The irony!

No, you do not need to renew. Tell the landlord you wish to revert to a periodic tenancy: agents don't like this because there are no renewal fees, but you can continue to live there until you are ready to give notice.