Rent Guarantee Insurance, 2 x failed references

Hi I’m looking for some advice. My property was recently advertised and I have found a couple that have had financial difficulty in the past but appear to be on the right track now, that would like to rent. They unfortunately failed referencing which wasn’t a surprise as they had been open about previous financial difficulty. They have found a guarentor which is one of their parents.

The rent is £1,250pm
The lead tenants affordability is £1,400pm but he failed referencing due to previous financial difficulties.
The second tenants affordability is approx. £500pm
The guarentor has passed referencing but the monthly affordability is £647pm, this person was selected to be a guarentor for both previously mentioned people.

Am I correct in thinking that in order to take out Rent Guarantee Insurance, the full monthly rental amount needs to be affordable by guarentor(s)?

I found this but it doesn’t seem to answer the question when both potential tenants fail referencing (I admit I may be misunderstanding the statement):

For tenancies with multiple tenants, if the applicant who has failed referencing is able to provide a guarantor the combined covered rent has to be higher than your monthly rental amount.

Where there is only one tenant then the guarantor must be able to cover the entire monthly rental amount.

Thank you for reading,


Does either have a ccj? If so is it paid or not? Was the ccj for anything connected to housing?

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Hi David, yes both came back with CCJs hence the failure of references.

One was for an IVA (credit cards over a period of single parenting) and the other was an unsatisfied amount on a credit card from 3 years ago.

The guarentor came back with a clean reference, only that their affordability was only £647 per month. As mentioned the rent is £1,250 per month.

Its up to you, but most landlords would probably look for someone else.


That would be a bad choice

I appreciate your responses, and fully understand they are far greater risk than most would accept. This is why I would prefer to ensure I meet the criteria to take out a RGI policy.

They have another guarentor that is willing to help, hopeful this would mean the full rental amount is covered by guarantors that have proven affordability. If that comes through ok then the initial question won’t be relevant anymore.

For some background, they’ve been renting the same house for the last 10 years and never missed a payment, verified by current landlord (who is selling due to ill health). They were willing to allow me into their current property as I was interested to see their living arrangements, it was evident that they look after the property and that means a lot to me! Having ensured guarantors will be in place, would this not suffice for yourselves?


UC tenant perspective:
It’s genuinely lovely that you’re looking to help these prospective tenants. But most single mums don’t accrue such debts…so for both in the relationship to have CCJ’s is evidence of inability to budget. They have a guarantor now, but why did that person not intervene earlier with payments to stop their child from accruing the CCJ in the first instance?:thinking:

There are numerous awards and grants available from council’s, specifically to prevent those of us going short from spiralling into CCJ territory.

They never missed a rent payment in 10 years…but both accrued CCJ’s during that time for debts, as recently as three years ago :grimacing:


I dont know if any RGI that would insure tenants who fail referencing. If there is, then it will probably exclude tenants with a CCJ.

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I don’t think you will get RGI for them but I don’t bother with it anyway. If they were upfront about the ccj’s, they are satisfied and you get a good feeling from them then I have accepted tenants in similar circumstances.

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I am a tenant that stumbled across your question. The couple you describe was exactly like my husband and I three years ago. We haven’t missed a single rent payment since our LL took us on three years ago. Her final decision to take us on, in her words, was because “sh*t happens” and you can’t always trust what’s on paper.
My sister let her property to a perfect couple (both doctors) on paper and they trashed the place due to domestic violence. Doors broken, windows smashed. Follow your heart.


I took on a previous tenant who had a ccj because they both had good jobs and met the affordability criteria. I did get a guarantor who like yours did not meet the full liability/income criteria but owned their own property.
The tenants were perfect tenants making rent payments on time and keeping the property nice.
So look at the circumstances of previous problems and current debt levels v income & dont worry about rent guarantee insurance. If youre still not convinced ask them to pay for a professional guarantor. Also looking at last 3 months bank statements would show their spending levels leaves sufficient for rent.

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My 30 years of experience says look for someone else.

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Don’t do it. I took on a failed referencing tenant because his partners was related to my son in law 12 months ago. Refused to leave when served notice six months ago now four months in rent arrears. I should have gone with my business head and gut feeling. Not a mistake I will ever make again

It’s a no from me. The guarantor can’t even be used. Both with ccjs? Iva is one step away from bankruptcy. That’s too high risk. Their attitude to debt is flawed.

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Trust your gut. As well if You would give them a chance I’m more than sure that they would be very gratefull and would pay as they need. I bet couple is trying to get a place to rent but no one is giving them because of that credit check so they trying their best with guarantor :confused:

Grateful doesn’t pay the bills unfortunately. Remain emotionally detached. Every tenant acts like butter wouldn’t melt before they get their hands on a landlords hard earned property.

If no one giving them a chance it’s understandable surely as both have racked up debt and not paid it off. Both been taken to court rather than sticking to a payment plan. There’s a lot of chances to sort before it gets to court.

They need a guarantor that meets affordability also. They may fair better with some landlords if they pay 6 month rent in advance too.

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If you were landlords, who would you first choice of tenant be? Those with CCJs and IVAs or those without?

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Yes, of course a tenant with no financial issues in an ideal world is great but it isn’t always that simple and can be few and far between. A ccj which has been settled but still on record wouldn’t bother me. I wouldn’t want an empty property for months.

Many landlords would rather have an empty period, although this is unlikely at the minute due to huge number of applicants per property.

I have let to those with CCjs, as I thought their reasons were reasonable. They need a solid guarantor.

I realise people get in a mess for many reasons. Lenders don’t care one iota about why someone who wants a mortgage hasn’t paid off their debt. Computer says no.

Well totally agree on that and I totally understand your point of view. I would think the same, but I would suggest to dig in deeper situation why couple ended up in this situation and then make a decidion to let them property or not. Aš circumstances can be very difficult in life and if they are ready to rent - more than sure that they came in to this with some kind of plan in mind (I would say, Im in similar situation). Can do some kind of contract in writing with them to make sure that - in case everything goes well or wrong - that you’re protected too aš it’s your property. More than sure it will be! It’s not just bad people around, there are a lot of good people in The World left who were struggling and going through stuff they didn’t deserve but somehow “got out of there” even though it was through credits. But aš we know - if you Take a credit - you’re planning your finances to pay it back before you sign up for that. Decidion iš yours in the end of the day, I’m just suggesting to have “open talk” with couple thats all. =)
Sending kindness to You and hope both sides will have positive outcome now or in the near future.