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Below is a list of questions and answers that we thought you may find helpful, however, should there be anything else you may wish to ask us - we are always here to help. Q: How do you calculate the income to meet the rental requirements?
A: Although it is not a strict measurement, we use the following formulas as guidelines for tenants and guarantors.
TENANTS: RENT x 2.5 x 12= REQUIRED INCOME GUARANTORS: RENT x 3 x 12= REQUIRED INCOME Should the applicant not meet these requirements, we do still take credit scores into account as well as tenant references. Look in ‘agents resource centre’ to download the affordability calculator. Q: Can we reference two people on the same form?
A: No, we require separate applications for each candidate, even if they are husband and wife. We do have a facility on-line which enables you to enter up to 6 applicants for the same property which makes things faster and much more efficient.
Q: Do I need to reference all parties concerned with the tenancy even if an individual is not going to be responsible for paying the rent?
A: It is a good idea to reference all individuals over 18 years of age to ensure that no applicants have got previous adverse history.
Q: Can we reference someone that has little or no income but has substantial savings?
A: We are quite happy to accept savings; however the calculations no longer apply. We will only accept a very recent statement to see what the current balance is and we would require the sum of the savings to equal more than the required income. Please call us to discuss this further if required.
Q: I know that my tenant will pass as they are in a high income bracket, why would I still need to reference them?
A: Even if an applicant has enough income to pass the reference, we take more factors into account such as their credit check and tenant reference. 473 Consumer County Court Judgements (CCJs) are issued every day (based on Q4 2011 trends). The average value of a Consumer CCJ in Q4 2011 was £2,949*
Q: If the applicant was referenced at the beginning of the tenancy and paid six months in advance, what should we do when the initial tenancy term comes to an end?
A: We would ordinarily ask for the full rental amount in advance only due to factors such as: unemployment, foreign resident with no employment, being unable to provide sufficient proof of income etc. At the end of the initial tenancy term it is advisable to re-reference the tenant to confirm whether you will need to take another advance rental payment or if they could in fact now meet the requirements.
Q: If the applicant is unapproved, is there an instance in which we can show them the report?
A: Ultimately the report you receive back on the applicant is your property. Under the Data Protection Act you are able to supply the tenant with factual information such as their personal details, and employment reference. Because a landlord reference is sometimes based on opinion we would recommend not showing the applicant this part of the report as it can sometimes cause difficulties between the landlord and tenant. If the tenant is still troubled by this decision please refer them to our privacy policy.
Q: Can we show the landlord the report?
A: In our experience most landlords only want to know the basic outcome of a report, ie yes or no. If they do want to view the report you must ensure you are complying with the Data Protection Act (1998).
Q: Do you charge anything if we cancel a reference?
A: If you have sent through an application and cancel it before the report has been sent back to you, you will not be charged for the referencing. For all questions relating to the Agent Rent Protection scheme please contact your Account Manager directly.
* Source - www.creditaction.org.uk |
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