I wish to offer my property to a PhD researcher. He is a earning a tax-free stipend.
The amount of his tax-free stipend does not meet the 2.5x rent-to-salary threshold. However, my understanding is that the 2.5x coefficient is meant for gross salary?
If I were to simulate his gross salary (i.e. if he was paying tax), he would be above threshold.
How should he go about passing credit check in that situation?
Thank you
Hi
A credit check checks for adverse credit and is separate from the affordability check. A normal reference will check for previous adverse credit.
Whether you accept the tenant is solely your decision. There are various recommended income to rent ratios but they are only recommendations and dont reflect a tenants individual position. It would impact the availability of rent guarantee insurance if you wanted that, I font use rgi.
You could also ask to see 6 months bank and credit card statements to see if he has any other major costs that could impinge on his ability to pay the rent.