An estate agent has just turned down my viewing request because I do not earn 36 times the property’s monthly rent. However numerous online sources state income should only be 30 times.
Could the fact that I am self employed be the reason why they raised the figure?
Different landlords will have different multiples and it is upto landlord on level of risk they are willing to take. Income of 3 times rent isn’t unusual.
It’s possible they raised it for self employment, you’d have to ask them
36 = 3years x 12 months hence 3 times annual rent, that is what I thought the recommended salary level should be.
It is just a rule of thumb. It assumes no other debts held by the tenant that need on-going payments. Hence 2/3 of the tenant’s income goes on living expenses and leisure. That is my understanding.
Hence 30 and 36 are both valid, depending on the landlord.
Where you got 30 from I dont know, but that does not matter. At least you checked.
The rule talks about gross income. Tenants will have much less than 2/3 left over after tax and rent.
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