Can I Rent During a Debt Management Plan?

September 19, 2014

Luke-Notley small (Custom)Debt management plans help thousands of debtors throughout the UK work their way out of the red and into the black, realigning their repayments to creditors in-line with their current financial situation. However, debt management plans can impact upon the ability to seek credit of involved parties, affecting their lives significantly.

Debtors considering a debt management plan may be concerned the scheme could significantly affect their living situation, especially if they are living in rented accommodation.

Landlord’s Discretion

Landlords may check the credit rating of people looking to rent their property, and evidence of a debt management plan may be something which discourages them from trusting a potential tenant.

However, there is no legal reason why someone on a debt management plan cannot rent a property or room from a private landlord. However, the decision to rent to an individual is entirely at the discretion of the landlord. Such landlords will traditionally only rent out to people they believe to be trustworthy, someone who can be considered a safe investment.

If you can demonstrate reliability to the landlord, showing them that you meet and fulfil other responsibilities (including your debt management plan payments) they may be more inclined to consider you a sensible investment and allow you to rent a property. Provide the landlord with documentation detailing the regular payments you make and demonstrate your income more than covers your rent.

Reliable References

Providing a dependable guarantor can help ease any concerns the landlord may have about trusting you to make the regular rental payments. Furthermore, it can be beneficial to provide proof of employment and references from previous landlords – demonstrating your responsibility.

If you take out a debt management plan with InControl and have made all the repayments on time and in full, our advisors can provide documentation testifying to this.

Even if a landlord has checked your credit rating and been discouraged from trusting you as a tenant, these documents could help change their mind. Paying a personal visit to the landlord’s offices with an appointment can give you the opportunity to explain your particular situation and demonstrate your value.

Deposit Depending

If a credit check demonstrates you are involved with a debt management plan, the landlord may be inclined to ask for a significant deposit to protect the investment. You may be required to pay a deposit of up the three months’ rent. Being able to pay this will help solidify your application for the rented property, and can be reclaimed upon the completion of the tenancy period.

For any more information about how InControl can help you manage your debt, visit our homepage or call our dedicated services team on 0800 072 6623.