Rent Guarantee Insurance without checks

Landlord Discussion
1

Hi,

I have a couple of tenants who I’ve got lined up to rent my apartment. One of them failed the reference checks, however, I can’t really see anything on the report that is of any concern to me regarding payment of rent.

Because of this I cannot purchase the Rent Guarantee Insurance from OpenRent. Doe anyone know where I can purchase this elsewhere? And if they require the same checks? I’ve googled around, but they’re all a bit confusing, and lok like they want me to purchase a massive insurance package including stuff I don;t think I need. Just need a no quibble rent guarantee insurance really.

What would landlords do in this instance? I was thinking of shortening the rental agreement, or making a note in the contract to state that if there are too many recurring late payments, I’d have the option to find new tenants to sort of protect my back.

Has anyone else encountered this?

Thanks,
Bav

2

So you did a reference check which failed them and you still want to go ahead???Or get a good guarantor

3

Basically yes. Only one of them failed, but the report returned that they were paying more than what I’m asking for, successfully for 3 years.

I don’t know what the done thing is in this instance. I think the only thing that failed him was because the credit check couldn’t confirm the address that he’d been at for the last 3 years, but the landlord check came in fine. Salary, employment and risk all looks fine too.

4

That sems unusuall I would ask for a guarantor. Sometimes we have to go on our gut feeling

2 Likes
5

Yeah, my gut feeling is all good.

Getting a guarantor won’t be possible, for personal reasons to them.

If something happened, and they decided they wanted to quit the agreement and move elsewhere, as long as I agree, is that usually all ok to? I mean, it’s my flat right?

6

Yes if a tenant wants to move early and BOTH sides agree then that is ok. My tenants can do that, in fact it happened to me just last week

1 Like
7

Hi Bav, Thanks for this Q.

As you mentioned, you can still qualify for the RGI policy when the tenant fails referencing if they are able to provide a guarantor who passes referencing. It is unfortunate that that’s not possible in your tenant’s situation.

Not to be salesy (which hopefully I avoid being too often on this forum…) but our RGI policy really is miles ahead of anything else on the market. But the reasons it’s so cheap and so straightforward are:

  • our volume means we can deliver good value
  • it’s only available where tenants pass referencing (or provide a guarantor who does)

We’re very interested in creating a policy for landlords where their tenants do not pass referencing, but it is a big struggle to get underwriters to agree to exploring any new markets with previously untested risks.

If we managed it, however, it would solve a raft of problems, including yours, and also the problems tenants on benefits face when trying to find a place to rent.

8

Yes I couldn’t get rent insurance on my tenants because one of them got a ccj 5 years ago. Fortunately they were only moving from a rental across the road and I knew them to be fine so I accepted them. It is very strict but understandable due to the huge costs should it go wrong.

9

Even if you have s guarantor this does still not allow you to buy the rent guarantee insurance if the ccj the tenant who you get the guarantor for’ s ccj is over 3000 pounds, this is not mentioned anywhere that I can see so paid for rent now service to get the ins and even after getting a guarantor still can’t