Guarantor - is this risky?

Hi
I have finally found a tenant and we are about to commence the open rent referencing.

Applicant has been upfront that due to ex partner and debt, she won’t pass credit check.

She has rented two properties, one for 6 years and current one for 9 years and can provide landlord references. (Ll selling)

She has said she will provide a guarantor that earns above the required amount (rent is £1,425 per month, so I think they need to show earnings of £43k as a min??)

Assume I process referencing for both?

Is there anything else I should do if she fails referencing?

Is a guarantor okay?

She has offered to pay 3 month deposit and show bank statements to prove she has paid the rent.

She works for the council as a social worker and can provide a ref. Guarantor works in finance and owns a house,

Any advice on this in appreciated as have never gone down the guarantor route before.

Thanks
Sandy

All sounds reasonable to me. Guarantor process through Openrent is very straight forward, and automated.

Thank you for replying to my question, it’s reassuring to have a 2nd opinion.

She cant pay 3 months deposit, deposits are capped at 5 weeks. She can pay 3 months rent upfront but this doesn’t really reduce the risk by much.

Guarantor income multiples are different. They need to have sufficient income in excess of their own expenditure to cover the rent. Ultimately it is for you to be happy the guarantor could afford it unless you want rent guarantee insurance where they’d have to meet the providers requirement.

Thank you so much, that makes sense and thank you for clarifying on the deposit side of things, i think she meant she would pay 3 months up front - as that is separate to the deposit, how is this done to ensure she is protected? Is it jus put in the contract and i provide a receipt?

I wouldn’t put anything in the contract if you’re going to do it, but then i wouldn’t do it. If she can pay monthly then she pays monthly, if she can’t she can’t. I never take anything except first month’s rent.

Yes full referencing for both. Also pay £3 to land registry to check that the guarantor is named on the title deeds of the house they say they own.

If you can get reference from the 6 year landlord that would be better than the 9 year current one. The current one wants her out and will tell you anything.

PS… I provide a receipt for any payment the tenant makes to me. It gives us both a paper trail, among other benefits.