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Rent insurance for tenants already residing for 7 months

Back in March my tenants failed referencing due to one of them starting a new job whilst studying for which the tenant was getting a student grant. they have a young child and it seems that they want to build a future together. They used Housing Hand as a guarantor which I was happy with and I started a 12 month tenancy with them. The tenants have always paid fully and on time to Openrent. This guarantor costs the tenants £80 per month and they are asking me if they can now stop using the guarantor service. I don’t think I am able to get rent insurance for this tenancy due to the failed referencing. Are there any other options to give me the rent assurance that I want? I may consider offering to reduce the rent by £40 I.e. half the guarantor cost and ask them to continue with the guarantor. I am happy with the tenants and they have given me no problems so far.

Your £40 offer seems good to me

@Louise3 Dear Louise, please accept my apologies for bothering. I have a potential tenant who has 3 children and on DSS with her husband working in a pizzeria, I was looking into rent guarantee and came to a message that OpeRent do not sell them due to Covid-19. I read in your message that the tenant pay a guarantor for £80 per months, may I ask what this is and if this is for tenants? Thank you very much for your help.

Hi Sung,
Louise may be able to give you more information, but it’s basically an organisation that acts as s guarantor for the tenants if they don’t have one.
The tenants have to apply for this and pay a fee each month.

Have you looked at your tenants bank statements?

If they do not have paperwork bank statements will show you her grant payment amount, their benefits and the amount the prospective tenant is paying for her course of studies.
Best wishes

Hello Mr_T, thank you very much for your help. They have show me their current accounts, which shoes that they just get by. They did not like to show me the saving account and theysaid they have some assets that is under their parents safe keeping. I am not sure how strict I can do asking to see them. I asked for 6 month rent in advance, but they said due to their benefit that cannot do this as they will loose out.
I have not heard back from his current employer, and this makes me even more worried. I am not sure what to do at the moment.

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Hi Sung,

Yes I can understand you can’t ask for savings so maybe safest to assume there aren’t any.

She could pay upfront I don’t see why she would lose out.

That’s an arrangement between you and them. The Housing Benefit doesn’t ask this question of them.

It only asks what the rent is and if they qualify they will receive it each month.

Are they renting another house now or with relatives?

Does their bank statements show the benefits they are receiving are covering their rent at the moment?

You could ask for benefits to be paid directly to you and get the Housing Hand guarantor service too?

Or look for new tenants. You seem to be going to a lot of trouble trying to sort everything out for them.

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what would happen if the tenants dont pay the monthly guarantee fee?

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Very good point. Not really worth the paper it’s written on then?

they would have to pay the whole lot upfront . It then becomes a minefield

Yes. Do you think you would let to these prospective tenants of Sung’s?

Hi Sung,

Did you get any other applicants for your house?

its all sounding a bit dodgy. Sometimes tenants start out good but they deteriate thru no fault of their making. I dont think I would let to them

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Yes. I suppose if there are doubts to begin with it doesn’t give much peace of mind.

Dear Mr_T and Colin, thankyou both for your help, it is much appreciated.
She said that if she pay me a lumpsum, she cannot show them the monthly rent expenses and will not get them paid. She is leaving at a rented place in a different town and will be moving here for study purpose.
The statement shown the rent, but when I send the refence off, I was unable to verify the agent, the name seemed to be different when I searched it up. The agent also answer in a very unprofessional way like mainly yes and no, instead of in a sentence.
The current employer has not send any reference after my chases.

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many apologies for my late reply, I don’t have a computer at the moment and asking to borrow one when it is not in use.
Thank you all for your help and patience, it is much appeeciated

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I am worried and I see what the possible problems I may get with them. I think I will just let this go and hope for a good one. I have a just a few contacts and most of the does not reply to my vetting questions at all.

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this all sounds bad, I assume you have not rented to her yet? If not then do not do it . It is too risky and is not checking out correctly. Alarm bells

The bad ones never reply to the vetting questions so you have not missed anything

If you are worried before it’s even begun, maybe you have answered your own question.

Not myself, but there are many landlords on here who have been around for a long time and you can learn a lot.

Let us all know how you get on with finding some different ones.

Good luck.

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Dear Colin,

I have not signed anything at the moment. I agree that it does not look good. I think I was just too desperate to rent it out. I think it is best to stop here and hope for the right tenant.
I really appreciate your help, thank you so much.

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