Openrent Gaurantor checks - concerns

Landlord Discussion
1

Hi,

I’m a new landlord. I have 2 joint tenants who meet the affordability check but only as a split. i.e. 70% one applicant and 30% covered by the partner however the gaurantor referencing, my understanding they should be able to cover 3.5 times the rent but the comprehensive referencing on the guarantor done says all checks are fine, no concerns but the garantor can only cover just over 50% of the rent based on their earnings which is very similar to one of the tenants earnings. Surely the affordability rating should of failed because they cant cover all the rent if required. Also the risk score checks, it says less than 400 rating average risk for gaurantor and the tenants have 340/360 and it says low risk. Am I missing something here? I thought good rating is above 500 .

I feel dissapointing wasting £60 on referencing and I have to say whilst I realise Open rent dont use HomeLet the leading reference check company as everthing done in house, the reporting does feel weak somewhat as above but its the gautantor side of things that is worrying, how it can say everything is fine when they can’t even cover the whole rent unless I am missing something.

Colin.

2

A guarantor should always cover all the rent apart from special cases like Student houses where a parent would only cover their offsprings share of the rent .
I like to do my own referencing and affordibility testing by talking to the potential Guarantor and asking to look at Bank Statements in particular at savings levels. If a Guarantor cant save for a rainy day and lives paycheck to paycheck or pension day to pension day how can they Gurantee anything ? Exactly the same for tenants .
Income levels are irrelevant if outgoings are matching it .

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