How do I show a letting agent I can afford the rent for R2R HMO?
On this weeks Ask The Angels we're talking about how to show letting agents you can afford the rent on HMOs and we have a great question from Scott about it.
Here is Scott's question...
“How do I show an agent I can afford the rent?
Do I need to deposit some money in my business account.
I have £10,000 I could deposit.”
When you rent a property as a rent to rent business and your business, you won’t have financial history to show.
And most people won’t have £10,000 to deposit in their business bank account.
Luckily you won’t need it, the referencing process will be on you personally.
And for that they’ll do a credit check.
And also an affordability check, so see you have enough income to afford the rent.
The income can be salary.
The income multiplier most letting agents use is 2.5 or 3 x the annual rent.
So if the monthly rent is £1,000
The annual rent is £12,000
Salary required at 2.5 x annual rent is £30,000At
3 x annual rent is £36,000
So you don’t need a big lump sum but you do need to show you can afford the rent.
You can have you question answered at
✅ https://rent2rentsuccess.com/ask ✅
If you’re on Spotify it’d be amazing if you can do that for us
✅ https://rent2rentsuccess.com/spotify ✅
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Until next time, have a great rest of the week.
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See you soon!
Stephanie & Nicky
xx
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