Hello everyone. I’m looking for some advice from more experienced landlords. Two years ago I rented this property to great tenants who quickly passed comprehensive referencing with everything going smoothly. This time around, it’s very different.
I have had a high number of enquiries, and so have an auto-response as follows:
"Many thanks for your interest. Before we schedule a viewing, please confirm the following:
Your annual household income is at least £xxxx?
Can you offer references from your previous landlord and employer if requested?
What is your preferred move-in date?"
The household income requirement is set at 2.5x my asking rent, so that I can secure RGI. All of the prospective tenants who I have gone on to hold viewings with have been replying positively, or stating their income is £xxx which is at an acceptable level.
After viewings:
1st applicant: refused to do Open Banking, but didn’t opt out of this via OpenRent and offer an alternative verification method. Rather, they only offered to show bank statements to me personally. Declined.
2nd applicant: refused to do Open Banking, two income referees (own company and accountant) both considered unreliable by Open Rent. Declined.
3rd applicant:
This time they did use Open Banking, and it is patently clear that their employment income falls far short of the minimum requirement. They had “verified tenant” status but it is clear their declared income is wildly overstated. At the viewing they confirmed they’d pay the rent from employment income, and at no time mentioned whether they receive other forms of income e.g. housing benefit that would go towards affordability.
My first question is rhetorical - why would you waste your and my time by not being honest about your income, knowing that it will be verified? (no answer required guys, just venting).
My real question for you: how do you as experienced landlords filter the wheat from the chaff? I don’t want to be too invasive before holding a viewing, but the next few enquiries I have all are telling me that their income is £xxx - just above the required 2.5x rent minimum requirement.
Is this just par for the course? What could I do differently? Rely more on spidey-sense?
Goes to show how openrent are doing this clearly for the extra pennies as tenant has to pay for this status, it seems like it’s effectively worthless if they aren’t, err actually verifying the details.
I ask over 20 (one word answer) questions via auto responder before I will even consider a viewing. Filters out alot but surprising high number do answer them.
I will then follow up with a phone “interview”.
I use a credit checking service and also check with employers directly.
Over the years I learned that you must be thorough. Don’t feel that you are becoming invasive. When you take out a mortgage they ask millions of questions including your resources of funds. This is a similar exercise. I usually do checks myself regarding employment and it’s stability, too. You can’t overdo nowadays. Never rush.
er… but that’s the best time to ask hard questions and get the answers backed up. I don’t do any viewings until I’ve seen six months of bank statements, for example. Without verified income and a track record of managing money, I’m not going to risk wasting everyone’s time showing them around a property they cannot afford.
The onus is on the applicant to prove that they can afford it. Your current approach allows them to sidestep that. I suggest you tighten up your approach and raise the bar for what needs to be proved prior to viewing.
I would suggest not asking the question ‘Your annual household income is at least £xxxx?’ as it may be leading the applicants to answer ‘Yes’. I suspect nobody is going to answer ‘No, I cant afford your property’.
I would suggest asking the question ‘What is your combined annual income?’
All thank you for taking time to leave a reply - incredibly helpful. I’ve boosted up the auto-reply Qs (including now asking for your income directly - thanks @Martin41 for that suggestion).
Will be patient, more robust, less naïve.
Oh and will keep reading this forum - unusually positive for the internet. Thanks again all.
Apologies for jumping on your post @Thomas23. I’m new to advertise on OR and the replies you have had are very helpful. I have now updated the screening questions before the viewings and this will hopefully save me a few headaches.
Thank you
Here is what I put in my OpenRent vetting auto response, which tends to quickly blow the bad ones out of the water. Then I follow up with a phone call.
The Guarantor, who owns a property in England or Wales, has been the key, my non-practising barrister/landlord, sadly now with dementia, befriended by a dodgy NHS doctor, with three jobs, including a match day doctor, with Princess Diana’s Lawyer’s @ £600/hr + VAT, to try to frighten me off with, into under-selling her huge Arsenal rental property, via Kinleigh Folkard and Hayward Estate Agents, Islington branch, taught me:-
“Thank you for your enquiry about my property. Please could you tell me a little about your circumstances, including what you and your prospective housemates work at, how long you have known each other and whether you could supply a Guarantor who owns property in England or Wales, if necessary.
I had 100 applicants before I found the right one for my last property.It seems the normal now for people to lie. Do not trust anyone, stick to being vigilant, the right tenant will understand this, those that dont are not worth wasting your time.
Easy, out of the 4 apps that went for referencing 3 of them were found out to have told lies. Many others that applied said things that they couldnt substantiate.
Help…. I don’t use this site often, been lucky with my tenants I guess… but this latest applicant… I feel odd about… he’s passed the income. As has his wife, he’s passed credit checks, but this is because he’s working here from abroad at the local hospital. He’s lived here for 2 yrs. in a smaller house. Move in date is 1/12/24… is it too late to ask for further evidence of sale et and to cancel offer if necessary?
Until you issue a contract and it is signed, it is never too late to back out, although without good reason, you’ll need to refund any holding deposit taken.
