Renewal of tenancy with one tenant being replaced by another - referencing

My flat is currently let out to two tenants. In order for the referencing to pass and be covered for rental guarantee (which I take with my landlord insurance rather than through OpenRent), they had to add a guarantor to ensure the affordability.

One of the tenants is now being replaced so I have referenced the new prospective tenant. She has failed due to affordability however I think this is because the referencing is looking at her income alone (the maximum rental affordability the referencing states is actually more than that of the current tenant she will be replacing).

If I take this new reference in combination with the previously completed references of the remaining tenant and the guarantor, the total monthly rental is covered.

In the unlikely event I need to claim on my insurance for the rent guarantee, will I be covered in this scenario or do I need to re-reference the current tenant and the guarantor?

Many thanks for any help

Speak to the insurers as they will let you know what they do and don’t cover
No one will be able to answer that here on behalf of your insurer

1 Like

I thought maybe there was a standard way across insurance companies of dealing with this. In case anyone else stumbles on this thread, rather than the rent guarantee scheme available through OpenRent which appears to take into account tenants’ affordability, the DirectLine one requires just references and a successful credit check.

All insurers have underwriters. Risks are calculated differently for each insurer.
I don’t know about rent insurance but some insurers underwrite for flying freeholds some don’t .
They will all have their own actuarial models so to get the most accurate answer I would get it from the horses mouth