MILLIONS of renters are forced to pay bigger deposits due to an “unfair” tenant checks.
Over 5millions renters in the UK, such as self-employed or those with a poor credit history, who are good tenants, claims Homeppl.
But “outdated and unfair” tenant reference checks mean they are often forced to pay bigger deposits, find guarantors or pay rent up front.
The tech firm, which launched in 2017, uses open banking, behaviour analysis and fraud detection to measure whether a tenant can afford to pay, not just their income.
“Self-employed tenants are unfairly required to earn more to secure a property,” founder Alexander Siedes explained.
“They can spend up to 33% of their gross monthly income on rent, whereas employed enjoy a higher threshold of 40%.”
Estate agents like Knight Frank and the Countrywide group are now using the technology.
Mr Siedes added: “The rental market uses old credit check methods to assess whether a tenant can afford to pay.
“We need to stop imposing an ‘unfair tax’ on consumers and stop giving landlords false confidence – it’s time the market used a solution that’s fair for both sides.”
The company recently announced it has raised £1.5million in funding to grow the business.
To improve their chance of getting accepted there are three things self-employed workers can do.
Keep proof of all income, be clear with landlords if work is seasonal and be realistic about how much they can afford if income does fluctuate from month to month.
We’ve previously explained how to get help if you can’t pay the bill.
While tenants in Wales have been told to take out loans to help pay off rent debts due to Covid-19.
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