Renting advice for a new contractor - is the estate agent lying?

[Spartacus]

Suppose you do this and you produce a payslip with a salary of around £10k because your contracts are not caught by IR35. How do you explain next when the rent is £1k a month...?

Can you repeat that in English please?

[chasingtheaurora]

Lying cheating scumbags, the lot of them. Second only to journalists.

Grrr.

/rant.

[MrRobin]

Can you repeat that in English please?

You present your payslips for employment with your ltd. The payslips show only a salary equivilent to £10k a year (because the rest of your income comes from dividends). If the rent is £1k a month, is the agent not going to say something like "err.. you can't afford this place". When you explain that you take the majority of your income in the form of divs then you're back to square 1, no?

[oracleslave]

Can you repeat that in English please?

It's quite simple. If you are paying yourself minimum wage (or somewhere thereabouts) then the payslips will not prove that you can neccessarily afford the rent.

HTH

[Spartacus]

You present your payslips for employment with your ltd. The payslips show only a salary equivilent to £10k a year (because the rest of your income comes from dividends). If the rent is £1k a month, is the agent not going to say something like "err.. you can't afford this place". When you explain that you take the majority of your income in the form of divs then you're back to square 1, no?

That, my friend, is one of the downsides of paying yourself a low salary. Gotta take the rough with the smooth.

[NotAllThere]

I owned a house, sold it and moved to another area. Before buying a house in the new area, I rented for a year.

I supplied a record of my income to the letting agency for the previous 2 years, and told them I was still employed by myco. I explained I had employment income (low) and dividend income (high). No mention of contracts was made by either side. I passed the credit check.

If the agency muppet can't understand, try this, assuming the rent is £2000 a month. Go round to the agency with a suitcase containing £24,000. Count it out in front of the agent. Say "Here is 6 months rent". Take back £1,000. "That's to cover the loss of interest on my capital, because you won't accept monthly payments". Make sure you go in at a busy time. It might be advisable to take a large, violent-looking friend with you.