Reply to: Tenancy - credit check

[Rebecca Loos]

But why do you pay the entire years rent in advance? how bad is your credit history?

1. Because I don't wish to disclose my salary and income structure to anyone, least of all a letting agency
2. Because doing so would also involve mortgage and income details from many countries, which is something they don't like

In the end, yes I could, but it's so much simpler to just say "listen guys, I'll pay you the whole year, or 6 months, now if you drop the need for references and income disclosure, have we got a deal?", and 99% of the time, it's a yes

After all, they get interest on advanced rents they would not normally have so everyone's a winner

[n5gooner]

there are similar tax breaks everywhere, even in the UK, as in Oz and NZ, where you can deduct mortgage interest and normal maintenance charges from the taxable income you get from rents.

which is why all our property is on interest only.....

[ALM]

But why do you pay the entire years rent in advance? how bad is your credit history?

[Rebecca Loos]

there are similar tax breaks everywhere, even in the UK, as in Oz and NZ, where you can deduct mortgage interest and normal maintenance charges from the taxable income you get from rents.

[tim123]

Makes more sense for me financially. In London rents collected do not cover mortgages except in some circumstances - but not where I could afford to buy. All my houses are in countries / cities where the rents I charge more than cover the mortgage repayments (so you will guess I do not own any houses in London), even with management agency charges and expenses, so in fact my mortgages are repaid and my surplus more or less pay for my own rent here. If I upset this fine balance by living in a house that I have bought, then I'd lose a bit of money every month. With my set up now, I don't lose a penny and live rent-free. Sorted!

A typical German scenario.

Many Germans cannot afford to buy the sort of house that they are prepared to live in, but want to be on the housing 'ladder'. So they buy some pokey bedsit that they wouldn't dream of living in, and rent it out whilst they pay to rent the four bed house with Garden that they aspire to. They get some sort of tax break for doing this.

tim

[freshblue]

As stated previously always state employee rather than Director or Self Employed. Your accountant/brolly/whatever should help...

[Rebecca Loos]

Makes more sense for me financially. In London rents collected do not cover mortgages except in some circumstances - but not where I could afford to buy. All my houses are in countries / cities where the rents I charge more than cover the mortgage repayments (so you will guess I do not own any houses in London), even with management agency charges and expenses, so in fact my mortgages are repaid and my surplus more or less pay for my own rent here. If I upset this fine balance by living in a house that I have bought, then I'd lose a bit of money every month. With my set up now, I don't lose a penny and live rent-free. Sorted!

[sasguru]

How long have you lived here Becs? Don't you regret not putting a deposit on a flat years ago.?


I would if I didn't already "own" a few properties.

The why don't you live in one of them rather than renting?

[mulhall]

...I told them I ran my own consultancy business and presented them with a letter from my accountant.

I think you're right there - I thought I was backing up my case by providing my current contract details but this has confused them, my accountants details alone are all that is needed.

[Bovvered]

Hi all,

I've put a deposit down and the letting agents now tell me that their credit checking agency will reject me because I'm on a three month contract.

Given that I asked them if being a contractor was a problem at the start, and we're set to move on saturday I'm livid!

Anyone else had a problem with this?

Cheers.

You sound like IR35 material, which nothing more than a state of mind. I rent a second flat as a work base, did I tell them I was a contractor? No, I told them I ran my own consultancy business and presented them with a letter from my accountant.

[Rebecca Loos]

How long have you lived here Becs? Don't you regret not putting a deposit on a flat years ago.?


I would if I didn't already "own" a few properties.

[Jabberwocky]

****! The whole year! You are either living in a complete dive or suitably rich b!tch.

I thought this was a contractor's forum! Are you saying you can't free £9,000 at the drop of a hat?

I can if the hat has £9,000 stuffed into it.

Jabber the Hat

[OwlHoot]

Assume a nice practical vehicle - a Ford Ka say - giving 40mpg

Ford Ka? (giggle) Ooh, get her, ducky!

[sasguru]

****! The whole year! You are either living in a complete dive or suitably rich b!tch.

I thought this was a contractor's forum! Are you saying you can't free £9,000 at the drop of a hat?

How long have you lived here Becs? Don't you regret not putting a deposit on a flat years ago.?

[privateeye]

I think a lot of buy-to-let won't let for 3 months but will do so only for 6 months. The only time I needed a short term let was coming back to the UK and didn't know when I would exchange contracts on my own home. Signed an agreement with the landlord for 6 months but could pull out if the landlord found someone else and would be refunded any money. Got refund minus costs of re-letting which I feel was fair.