Sometimes tenants find properties that are a little bit above their referenced affordability. (You can find out more about calculating affordability here.) When this happens, a shortfall payment is often utlised to reduce the rent and bring it down to a level that meets that tenant’s affordability to pass referencing.
At flatfair we can only accept tenancies where the rent reduction is reflected in the contractual rent due for the property on the tenancy agreement and on the flatfair platform.
We are unable to accept tenancies where a shortfall payment has been agreed to, where the rent amount has not been reduced on the tenancy agreement.
We understand that once a tenant has established a good rental payment history, increasing the rent amount for the property remains at the Landlord’s discretion. As with traditional deposits, tenants are not expected to top-up their initial deposit amount and flatfair works in a similar way where any rent increase occurs separately. This means that increasing your rent at an existing flatfair property would not increase your flatfair protection for that tenancy, unless a new membership was taken out by the tenants at the new rent rate.
If you are unable to document the new reduced rent amount on the tenancy agreement then we recommend proceeding with a traditional deposit instead of flatfair.