Two of my tenants who have retired and receiving pension have failed the affordability calculations (stating verified income does not cover rent) as part of the references but their kids who both are working passed the affordability check and the total is enough for payment of rent. To be eligible for RGI, what are my options? Raise a request with OpenRent to look at the reference again or remove the parents from the tenancy?
Any advice would be appreciated.
I’m not sure its going to be as easy as you think to remove the parents from the tenancy. There are certainly a couple of processes that could be used to remove them on paper, but assuming they continue to live there, I’m not sure whether a court would view their removal as a sham if they ever challenged it. You may want to get legal advice on this point.
Maybe I should have been clearer. They are yet to occupy the property and this is a new tenancy. I am surprised why Openrent is showing only the parents as failed affordability just because they are only receiving pensions.
kids move in or as guarantors?
They haven’t failed “just because they are only receiving pensions”. That’s not how affordability checks work. They’ve failed because their income (from whatever source) does not meet the level required to afford the property.
What is their combined income and what is the rent?