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Landlord demands for Salary Income proof (Bank or Tax statement)

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  1. #21

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    Quote Originally Posted by big_panda
    Landlords get very pissy when you ask them for the mortgagee's consent to lease. I asked for this once and was told the LL would withdraw the offer, basically because he would need to pay HSBC an approval fee and risk the mortgage interest being increased due to reclassification as an investment property.
    Mine got all pissy too, exactly the same reason. I got a small discount on the rent after he refused to provide it

  2. #22

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    Quote Originally Posted by Open Casket
    Income alone is very poor predictor of credit worthiness. Debt to income ratio is far more important. So unless your landlord can verify what debt you are holding, it matters very little what your income is.
    But it is still the most practical means that landlords have to gauge a tenant's financial status. Can you imagine a landlord asking for proof of your debt-to-income ratio?

  3. #23

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    Quote Originally Posted by jmbf
    But it is still the most practical means that landlords have to gauge a tenant's financial status. Can you imagine a landlord asking for proof of your debt-to-income ratio?

    Having worked in risk management before, as long as I had 2 months worth of security deposit, I would find someone's income totally irrelevant. In fact, I might argue someone on a lower wage would be less likely to default on the rental agreement as they have more to lose relative to their income.

  4. #24

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    each LL is different, my next door neighbours LL asked for 12 months of post dated cheques on top of the proof of income blah blah.
    I have experienced it also of being asked salary statements and I showed it. Didnt bother me as the rent was low anyways.


  5. #25

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    Quote Originally Posted by Open Casket
    Having worked in risk management before, as long as I had 2 months worth of security deposit, I would find someone's income totally irrelevant. In fact, I might argue someone on a lower wage would be less likely to default on the rental agreement as they have more to lose relative to their income.
    I guess you could argue it both ways. There's an element of risk in every rental transaction and different landlords will have different approaches to handling that risk.

  6. #26

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    Quote Originally Posted by Open Casket
    Having worked in risk management before, as long as I had 2 months worth of security deposit, I would find someone's income totally irrelevant. In fact, I might argue someone on a lower wage would be less likely to default on the rental agreement as they have more to lose relative to their income.
    If the tenant does not pay the rent, you will have to file a case in the High court or Small claims tribunal. By the time you get the vacant possession, your 2 months deposit will be long exhausted. It took me more than 12 months to get vacant possession. Do not expect that the rent will be paid for this period.
    jmbf likes this.

  7. #27

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    Quote Originally Posted by Open Casket
    In fact, I might argue someone on a lower wage would be less likely to default on the rental agreement as they have more to lose relative to their income.
    If your tenant stops paying the rent, the landlord loses out - full stop. Never heard of a single instance of landlord being adequately protected by two months rent. Any tenant has little to lose by defaulting given the legal procedures the landlord must take to evict them.
    jmbf, jrkob, onzki and 1 others like this.

  8. #28

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    Again, although you could argue it both ways, I tend to agree with Oldtimer and TB. Given the fact that almost anybody borrow / take out a loan to cover the initial security and deposit payments, it does make sense that landlords would look to income proof as a better assessment method for potential tenants.

    jrkob and onzki like this.

  9. #29

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    Thanks for all your replies, having read all these variety of opinions is really helpful and a relief for me personally, at least next time that I would rent a flat, I will be more "open" & understanding to different LL's possible proof demands.


  10. #30

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    Quote Originally Posted by TheBrit
    Never heard of a single instance of landlord being adequately protected by two months rent. Any tenant has little to lose by defaulting given the legal procedures the landlord must take to evict them.
    Thanks for pointing this out as I was unaware of such delay entailed when case is elevated to high court legal procedures. I always thought that the security deposit is enough to cover any unlikely default by tenant, such as leaving HK without notifying LL (I heard some unlikely instances)
    Last edited by onzki; 01-10-2015 at 07:21 PM.

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