Now that you know that you can apply and qualify to rent a property when under debt review, let us dive into how we assist our clients to rent a property through a registered estate agent.
New clients:
A potential new client must complete our application form, also referred to as a form 16.
This document comprises of roughly five sections, as broken down below:
Section 1: Personal Information
Section 2: Monthly Income
Section 3: Monthly Expenses
Section 4: Debt Obligations
Section 5: Declaration
For this post and the topic at hand, we focus on Sections 2 and 3 of the form 16.
A roof over your head is deemed as an essential expense, meaning that you pretty much cannot go without it, and usually, our clients have an amount listed under Section 3 of their application form for rental income.
Johan would look at this amount, and after analysing and reviewing the rest of the client’s budget, will make an assessment on whether the consumer can afford the rental amount or not. Think of it as a kind of affordability assessment if you like. If the rental amount, and other expenses are deemed reasonable and affordable, the application will be accepted.
Clients already under debt review:
We often find that for various reasons, while under debt review, clients want to apply to rent another or new property through a rental agent. The rental agent will do a credit check and notice the client is under debt review. The rental agent then requires a letter from the debt counsellor confirming that the client can afford the rent of the new property.
Johan re-calculates the budget and if the budget shows the client can afford the new rent, he sends a formal letter to the estate agent, informing the agent that the client is under debt review with us, that the client is making regular payments, and that the client can afford the stipulated rental.
For example, if the client wants to apply for a rental of R15 000 and they have only R10 000 in their budget for rent, we will not issue the letter to the rental agent.
Debt counsellors and clients have a fiduciary responsibility to ensure that we always act in good faith. We cannot approve a figure that does not make sense according to our client’s budget.
Following the proper procedure as described above, to date, we have not had a single case where one of our clients were declined for rental accommodation, while being under debt review.
At Johan Wepener Debt Counsellors we strive to make the lives of our clients easier, from a financial perspective, and this is one of the ‘after care’ services that debt counsellors have a responsibility to uphold.
If you’re already under debt review, and you need to move, but are unsure of the process, all you must do is approach your debt counsellor and request a formal letter.
If you have any questions regarding this topic or any other pertaining to debt review, please do not hesitate to reach out to us on any one of our social media accounts or simply contact us on the information provided under the ‘Contact Us’ page.
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