Failed referencing - what to do

hannahkaty

I am in the process of moving flat and was due to be moving into a new place this weekend. The referencing has taken over a month due to delays with the property manager being generally useless and i have been told today that i have failed referencing due to the fact i exceeded my overdraft limit a couple of times in the summer (never mind that i took money out of savings to get back into the green). 

Aside from this i have excellent references from my current landlord, where the rent i pay is 400 more expensive than the place i'm moving into, i have never missed a payment and i earn well over the minimum salary threshold. 

I'm a bit at a loss as to what to do next. I'm supposed to be moving on saturday, and I cannot understand how my overdraft status months ago has over-ridden the fact that i have never missed a rent payment, have solid and well paid employment and have a good credit rating. 

This feels like a very computer says no situation and so i am trying to appeal but classically the building management company aren't responding to me

My new flat mate is keen for me to just move in anyway, as obviously she doesn't want to get stung having to pay double rent,  and doesn't think they'll actually even realise if they're getting their rent, but i dont want to put her in a potentially illegal (?) situation by doing this. 

Are there any steps i can take to appeal the decision?

GrumpyDil

You'll have to talk to the lettings agency/landlord. Maybe offer 6 months rent up front or similar? 

theartfullodger

There is no requirement for a landlord or agent to take up references.

But if they do it's their rules (which you can agree to or not).

Be open, honest, I agree offer more rent up front (this proving you are solvent).

Jemma01

it's better to let your housemate communicate directly with the landlord with proofs of your payments "ontime", I'm sure the landlord would be ok with that along with evidence of money in your savings. This is PII information that landlords would rather not receive or deal with, but having the proofs ready could speed things up.

I feel second-hand stress for you, esp if you've given your notice to the other place and they've already found someone else, my agent would charge me penalty when I was renting if I handed my notice and then withdrew.

annetheman

Hi OP, I think writing a clear, concise explanation of why you were in overdraft and how you took action quickly to rectify it with savings (which very few people who actually have serious budgeting issues have!) could make a difference, as has been said they do not have to refuse to let to you based on that - you can put your case forward. 

I failed referencing because I paid my rent late twice in a previous rental in 2017. I did exactly as above, explaining why it was late with reference to each individual instance and attached evidence supporting payment made less than 24 hours after due, and my contracting pay days showing delayed payments etc with bank statements all highlighted. The Lanndlady decided to rent it to me anyway, and I was there for 3.5 years. She sent a really lovely card to my new home after I moved out and bought my first flat - such was the good rapport between us. Just took getting past the computer-says-no with a clear, substantiated, honest, explanatory email.

Good luck!

saajan_12

hannahkaty said:

I am in the process of moving flat and was due to be moving into a new place this weekend. The referencing has taken over a month due to delays with the property manager being generally useless and i have been told today that i have failed referencing due to the fact i exceeded my overdraft limit a couple of times in the summer (never mind that i took money out of savings to get back into the green). 

Aside from this i have excellent references from my current landlord, where the rent i pay is 400 more expensive than the place i'm moving into, i have never missed a payment and i earn well over the minimum salary threshold. 

I'm a bit at a loss as to what to do next. I'm supposed to be moving on saturday, and I cannot understand how my overdraft status months ago has over-ridden the fact that i have never missed a rent payment, have solid and well paid employment and have a good credit rating. 

This feels like a very computer says no situation and so i am trying to appeal but classically the building management company aren't responding to me

My new flat mate is keen for me to just move in anyway, as obviously she doesn't want to get stung having to pay double rent,  and doesn't think they'll actually even realise if they're getting their rent, but i dont want to put her in a potentially illegal (?) situation by doing this. 

Are there any steps i can take to appeal the decision?

What exactly is the setup
- Is it a new tenancy with you and flatmate moving in at the same time?
- Or an existing tenancy which would be amended to include you?
- Have you / flatmate signed anything yet? 

The above will affect the other options you have if they don't like your references. Note they can set whatever criteria they like, so there's no 'appeal' rights other than convincing them. 

hannahkaty

Thank you all for the advice. I ended up writing an appeal to them stating my case and offering to pay rent upfront if needed. Luckily they saw sense (i.e i'm a good prospective tennant with a stable job and income, have never missed a rent payment or paid late) and overturned the decision so I can now be added to the existing tenancy agreement and don't need to pay X months upfront! 

penners324

If you have savings, don't use the overdraft