Students/low income renters require guarantor

Landlord Discussion
1

I have a property that I’m just letting.

Have an enquiry from 2 students who want the flat but will not pass the credit check because of low earnings.
If they can get one guarantor between them who passes credit check then Great, that person would guarantee the whole rent.

If they get a guarantor each, how does this work in terms of credit check? Do I credit check them for half the rent each? As neither would pass for the full rental amount.
So for example the rent is £2000pcm. Do I reference them at £1000pcm each?

Plus if one person pays the rent and the other doesn’t, do I just go after one guarantor? Where do I stand?

Sorry if I’ve confused everyone!

Advice greatly appreciated

2

you can set the terms two guarantors .one each?

3

Thanks and does that mean I would credit check them on half the rent each?

But they would still be fully responsible for the whole rent should anyone default?

4

Seeing as they are sharing I would make it clear EACH guarrantor guarrantees the whole rent. You are the boss

5

Thankyou, appreciate it

6

Pretty sure the standard Open rent contract makes all parties jointly and severally liable for the whole lot - so the reference would be for the full amount.

Not sure how it is possible to limit each guarantors contribution to only a portion of the outstanding rent or other claim.

Joint and several means that you can go after any one of the signatories for outstandings, no matter which if the others was “at fault” - saves you having ot get involved in any arguments about responsibility between the tenants.

However, since it is hard / impossible to get rent guarantee insurance in current times - just get the referencing that works for you as it is only useful for your own peace of mind