Tenants referencing

Skag

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

saajan_12

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

Skag

saajan_12 said:

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

I'm using OpenRent's comprehensive referencing.

_Penny_Dreadful

Skag said:

saajan_12 said:

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

I'm using OpenRent's comprehensive referencing.

It’s not really that comprehensive. 

Skag

_Penny_Dreadful said:

Skag said:

saajan_12 said:

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

I'm using OpenRent's comprehensive referencing.

It’s not really that comprehensive. 

What do you think it's missing that should be there? It seems pretty full to me.

theartfullodger

Does tenancy specify how much each tenant and/or guarantor pays?  (IMHO unwise)

Skag

theartfullodger said:

Does tenancy specify how much each tenant and/or guarantor pays?  (IMHO unwise)

They're collectively responsible for the rent, as the AST will be on all of them renting one property.

_Penny_Dreadful

Skag said:

_Penny_Dreadful said:

Skag said:

saajan_12 said:

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

I'm using OpenRent's comprehensive referencing.

It’s not really that comprehensive. 

What do you think it's missing that should be there? It seems pretty full to me.

I have seen the comprehensive referencing completed in a matter of hours even on non-business days where really old and out of date payslips have been used for affordability and without waiting for the employer reference yet saying the employer reference has been verified.  How are they verifying something they have never seen?

It is only £20 so I guess you get what you pay for, just double check that OpenRent has actually completed all the referencing using current information. 

Zoe02

Openrent they are OK but could be better.

When i listed my flat, I had paid for referencing but the guy gave a fake employer email for Uber used gmail email address.

Was taking almost a week nothing had come back, had to request for them to send me what they have so their attention to detail can be improved. 

saajan_12

Skag said:

saajan_12 said:

Skag said:

I'm screening 4 tenants and their guarantors for a new tenancy.

Naturally, the tenants cannot afford the rent so the checks failed. On the guarantor's side, 2 of them came back OK, 1 came back as passed but "In Conjunction With Other Applicants", and one came back as Failed due to low income.

How would you approach that as a landlord? What % of the rent would you like to see covered by the guarantors?

Depends what the referencing service are using as their criteria and how that compares to what you need to be comfortable. 

Personally my rule of thumb is 
- total tenants' gross monthly income is 3x rent or
- total guarantors' gross monthly income is 4x rent

The guarantors income threshold being higher because they have to pay for their own living costs and covering this rent is an additional extra. 

I'm using OpenRent's comprehensive referencing.

okay.. the question was what are their criteria? 

gazfocus

For me, if the tenants can't afford the rent, it's a straight no. There's no reason in todays market to go around offering the house to someone that will need to beg/borrow/steal every month to cover their rent.