Screening of letting applications and reason for declining a specific application
Category News: Economy
Screening of letting applications and reason for declining a specific application.
A client or prospective tenant is always hesitant of providing the required documentation to evaluate the rental application. This been due to the vast amount of identity theft and or misuse of personal documentation/information. An Estate Agent is bound by the Rental Housing Act as well as the EAAB Code of Conduct to safeguard all personal information provided to them is kept is a secure location.
Under normal circumstances the required documentation for a natural person is their identity document, current pay slip, proof of residency and 3 month bank statements.
- Identity documentation is to prove your identity / passport and forms part of FICA requirements.
- The pay slip is required to prove your available spend IE: rental / affordability
- The proof of residency is required to prove you are a legal citizen in the county and forms part of the requirements of FICA
- 3 months bank statement to prove you salary as per your pay slip is valid
In addition to the above a complete application form is required signed and dated by the applicant. The application forms give the Agency permission to run a credit check on the client.
This credit check forms part of the application process and assist the agency in making a decision on approval or rejection of the applicant.
Once all the required information has been checked an affordability check is undertaken.
To go into more detail the credit check will allow the agency to see all accounts (debt) the applicant hold, past and current addresses, employers current, directorships held by the applicant, the month payments to each account and if the applicant has any judgements against them.
Each credit report is graded A to F, F does not necessary mean the applicant is a 'bad apple' and could indicate that the applicant has no debt.
Once all documentation is checked a final decision is made based on the documentation it must be noted that in no way does the application divulge the tenant behavior in terms of his daily behavior.
The applicant is then advised accordingly and the lease is then concluded.
An application can be declined if the credit report shows a lack of affordability, the applicant has more debs that his income can service.
Other reasons the application may be declined are -
- Poor payment history
- Poor verbal report from their current Landlord
- Counterfeit documentation