sorry for daft question as I’m very new to this, but I have a potential tenant, very open they are on UI with no employment (new mum and dad lost job). The LHA will cover rent, but I dont know if they will pass the OpenRent comprehensive tenant check, that enables me to buy RGI. I hear they an income of 3x the rent is required, and I know they don’t have that much UI.
I dont want to mislead anyone, am I dreaming that a UI tenant with good credit history can pass the check check, or will they always fail due to UI ?
thatis not a daft question. They probably wont pass. Are you SURE LHA will cover the rent. Dont forget ,the tenant gets the money NOT you.! I will NOT take LHA tenant , but then I have enough income to have a place empty., for a while… I have one coming empty soon and will ask for 6 months upfront or leave it empty THe rents I have are all below market value which has worked for me. ASk to see bank ac, can they get a solid guarrantor (can they pay more upfront). If you are a first timer remember this …75% of tenants LIE ( 40 yrs a landlord)
Hi Alex, it is very unlikely that these tenants would pass referencing unfortunately. This is due to the way that referencing companies treat benefit income.
This blog post might be helpful?
Sam