1st time landlord, how to proceed

I am a first time landlord and found some tenants through OpenRent. There are 2 couples who are all close friends. Is that classed as an HMO?

2 failed referencing but because of the industry they work in, the income doesn’t look good on paper but is in real life and they have a good reference from previous landlord.

I can’t qualify for OpenRent’s RGI product.

If I want to go ahead regardless, what insurance do other landlords have, away from RentGuard’s RGI? If you have some kind of rent guarantee/legal cover elsewhere, do you still come up against the same credit check problems?

Would welcome any advice that would help me proceed with my tenants as above. I know the risks but helpful advice would be appreciated!

Thanks!

Hi Murphy, glad to you found tenants with us!

Yes, two couples would be an HMO, because it is three or more persons not forming a single household. One couple = one household. So your property with these tenants would be four people forming two households.

Just so you know, if the tenants who failed refeferencing are able to provide guarantors, then you will be able to access our RGI product, which at £89 for 12 months, and with no excess payments, really is a market leading product.

Sam

You can refer them to “Housing Hand” guarantors for assistance with their Rent Guarantee. They are a company that specialise in offering rent guarantee to employed prospective tenants with credit issues

Have you checked your mortgage provider & building insurance to check if they allow such a rental or you could get into deep trouble otherwise.

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You can now get insurance as part of your property insurance which covers you for legal expenses relating to evictions
Not RGI as such but a help nonetheless