Openrent referencing loop hole

OpenRent Chat
1

Hi, has anyone else experienced this.

The guarantor had but down rental income as proof of income. OpenRent have confirmed this with open banking. The 12 months of alledge rental income does not smell right. Over the period the rent varied from £1800, to £1,140.37 then settles at £1,694.60pcm. The days of the payment also changed over time from 12/13 of the month to 1st on one occasion, then settles around 7/4/6 of the month.

As a landlord with a number of properties my banking account show the tenants name & the amount they have paid each month. In this guarantor case it shows ‘SAV LANDLORD’ as the tenant.

Finally, OpenRent has just taken this rental income at face value. If the guarantor is a landlord then they should ask to see their last tax return and reference from their accountant, surely! OpenRent referencing does not seem to pick up someone who is self employed.

I have put this to OpenRent but the fail to actually answer what I am raising.

This same guarantor allegedly works for a large USA international finance firm who are unable at the moment to provide a reference for an employee that started working for them this month on a salary of £120,000!

All I see is red flags flapping in the wind.

Regards,

Scott40

2

What happens to your guarantee if the guarantors tenant stops paying?

3

@Scott40 why would you distrust the openbanking - that comes direct from a bank account providing inflows and outgoings. Not unusual for payment date to change, could be LL tried to fix it at 1st month to be 1st of month but their tenant hasnt been able to make that so now pays a few days late. Could well be the LL has a different [savings] account used for all rental income from tenants [and expenses] and what you have is transfers from that a/c into the LL’s current account from there.

Remember OR referencing is cheap as it is largely automated, they will only ask for further info if requested by you as that takes a human and costs extra £

But the normal rule is, if you are unsure ask the tenant/guarantor for more info to satisfy yourself, or find someone else

good luck