Yes, if you’re looking to rent in London, the majority of landlords will ask for proof of income in the form of payslips, work contracts or bank statements to ensure that you can afford the rental payments.
If you don’t have these, then some landlords may accept a guarantor or an advanced payment as an alternative.
If you’re looking to rent in London but have no idea where to start, the team at J Property Management will be happy to help. Contact us today to join our tenant database – we manage properties all over South London, so we can help you find your next home.
Why Do Landlords Ask For Proof of Income?
A proof of income gives landlords confidence that the tenant can afford the rent they are charging. It also provides some security that tenants will be able to continue making these payments in the future.
If a tenant becomes unable to pay their rent, landlords no longer get a return on their investment and may have to pay for legal support to reclaim the funds or file for eviction.
For landlords, asking for proof of income is a simple safeguarding measure when beginning a new tenancy. Property management services in London will normally do this on behalf of the landlord, running thorough tenant screening and affordability checks for any new tenants they bring into the property.
How Do You Show Proof of Income?
Proof of income can be shown in a number of different ways and may depend on the landlord’s preferences.
Common proof of income types include:
- Recent payslips
- Contracts of employment
- A letter from an employer
- Bank statements
Those who are self-employed may need to show their recent tax returns, bank statements or a letter from their accountant confirming their annual income.
What Happens If You Don’t Have Proof of Income?
If you are unable to provide proof of income, then don’t worry, you may still be able to rent.
Here are some alternatives to proof of income that landlords might be willing to accept:
Having a guarantor: A guarantor is a trusted person of the tenant (often a parent) who agrees to be financially responsible for the rent if the tenant is unable to pay. They will need to demonstrate proof of income and financial stability to the landlord.
Paying rent in advance: In lieu of proof of income, certain landlords may allow tenants to pay rent for a few months in advance. Or, if the tenant is able, they could pay the entire lease term up front.
Bank statements: If you don’t have a steady income but have sufficient funds in your bank account, landlords may accept proof of this via bank statements.
Offer letter for a future job: For those waiting to start a new job, a letter from a prospective employer laying out the start date and salary could be used as proof of income.
Benefits: If you claim benefits like unemployment benefits or disability income, this documentation might be used as proof of income.
Credit checks: Some landlords or letting agents might run a credit check to assess your overall financial stability. Whilst this might not be enough to secure the rental, it can certainly help in a lot of cases.
What Other Documents Do You Need For Renting in London?
In addition to a proof of income to ensure financial stability and the ability to meet rent payments, landlords will likely ask for further documentation such as:
Proof of identity: Confirming your identity and current address is important when you’re looking to rent in London. This can be done with documents such as your passport, driving license or a recent bill that lists your address.
Right to rent: If you’re a UK citizen, a passport is sufficient for demonstrating the right to rent. People moving from abroad will need to provide a copy of their visa, national identity card or immigration status document.
Character reference: This is a letter from someone who knows you well and can vouch for your character and your ability to be a responsible and reliable tenant. People often ask friends, family members or someone from their professional or academic setting to provide this.
Employer reference: An employer reference will usually just need to confirm employment details (place of work, role and salary), your income and a brief insight into the type of person you are.
How to Demonstrate Proof of Income to Rent in London
Demonstrating valid proof of income to rent a London property will depend on your employment status.
As mentioned, there are alternatives available if you are unemployed, but there are also differences between proof of income if you’re employed by an external employer or self-employed.
Proof of income if you’re employed (PAYE)
As an employee, there are many different documents you can use to demonstrate proof of income including recent payslips (usually 3-6) or an employment contract or employer letter containing the relevant information.
Proof of income if you’re self-employed
If you’re self-employed, you might have to demonstrate earnings over a longer period of time (1-3 years, rather than 3-6 months). This is because being self-employed is seen by landlords as less stable. Self-employed individuals can show tax returns, bank statements or training records to prove financial stability. If you work with an accountant, they could also provide a statement on your behalf.
Can You Rent in London if You Don’t Have a Job?
It’s not impossible to rent in London without a job, but it is more difficult. As you won’t have a proof of income, you will need to demonstrate that you can cover rent payments. This could be via a bank statement (to show you have enough money to cover the rent) or by having a guarantor.
Renting in London Without Proof of Income
If you’re looking to rent in London without a steady job, it can be a challenge. Making sure you have enough money, through savings, investments or income from alternative sources, is advisable. Also, a good option is to have someone you can rely on to act as your guarantor.
At J Property Management we work with hundreds of South London landlords looking to fill their homes with reliable tenants. Get in touch with us today at info@jpropertymanagement.co.uk to let us help you find your next rental home.
