Tenant failed reference for CCj and Guarantor failed on affordability! What do I do?

Hi all,
I am new to this platform and have been reading a lot of the posts which are really useful.

I have gone through the whole process and finally decided on a possible tenant. The tenant has failed the comprehensive reference for the credit check due to previous CCJ which has now been settled as of 2022. I have asked for a guarantor as a back up. The guarantor passed every criteria but failed affordability! I personally want to take out landlord insurance but not sure if I can get one based on the fail from both side. My question is that the tenant CAN afford the rent but by requesting a guarantor who passed the CCj- will that offer adequate cover to get a landlord insurance? I have also let the tenant and looked at all the other detail and want to go with them bit don’t want to go just on my feelings but rather be more objective. Any advice or facts on this? Thank you.

Read the terms of the rent guarantee insurance to find out the exact criteria?

I can’t imagine any insurance company accepting guarantor though as they probably all work on same or similar affordability ratio.


Run! Don’t even think about this! Personally if I were presented with this as the only option, I would leave the place empty and pay the council tax! If I could not afford to do that from any existing income, I would take a risk and increase my short term debt. That’s it. This is toxic. Walk away.


I wouldn’t even consider this application move on there are plenty of applicants out there.


agree with the above .All said


I would not rent to them. Too risky.


Was this tenant really the best of all your applicants?

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if he was, then we are all in trouble

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Thank you all for your responses- it’s been helpful. I didn’t go ahead to take the person after all. Unfortunately, I am no where closer to finding a tenant. The person I planned to take failed reference based on affordability but him and his partner together can meet the affordability but not sure if there is opportunity for a joint reference. The guarantors provided have also been short on the affordability scale. I have now done 6 references in this process alone between my CCj guy and my potential new tenant.

Really trying to find the right person and not rush the process so it doesn’t come and bite me later on but just not getting the right person.

where is your property?

Dagenham (Barking & Dagenham borough). It has got really got rental potential and alot of enquiries- which I am learning doesn’t always lead to the right tenant!

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I thought referencing did take account of joint income?

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i am surprised no decent takers in that area

This is exactly what I am faced with as a landlord ,My potential tenant has failed referencing due to past bankruptcy and a CCJ and his gaurantor has failed affordability as he’s £150 under what I am asking .

I’ve now been asked whether I would reduce the rent by £150 to make it “affordable” and accept a one off payment at the start of 12x £150 to make up the difference . Should I walk away or try and make it work ? Can I even change the rent at this point with Openrent so they will provide RGI ? As someone has said sometimes your heart overrules you head in situations like this . Any thoughts ?

You can’t accept the 12 x £150 and lower the rent as this type of payment would then not be allowable.

Just a thought, have you checked to see if they would allow guarantor but only pay out upto their maximum affordability?

they both failed and you want to make it work .bankrupt, ccj, failed affordability. Really? Why reference if you take no notice of it?

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An empty property is far better than one that is badly let. A tenant may be bad through no fault of his or her own just circumstances. A lower rent ask should in London attract more interest. However apply the test of rent being less than <40% of income (this is the average level for Barking and Dagenham). If you are already asking for a competitive rent something else is wrong here.

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Hi all,

Thanks for all the advice and views given to my dilemma.
I have now officially rented out the property to the tenant that was my second choice (but him and his partner failed affordability as I did a separate reference). From advice received here, I was able to contact OpenRent who helpfully joined the couple’s income meaning they were able to afford the rent together and the tenancy contract is in both their names.

I didn’t now bother with another guarantor as they are both joint tenants and both meets affordability and God forbid anything goes wrong, there’s two people on the contract! .
Today marks 1 week since they have moved in so looking forward to collecting one month rent from OpenRent, counting down to the 10days grace period!

Glad I waited and sought advice on here as it made me not rush and remain more objective. Fingers crossed, the journey goes well.

As Samo on Grange Hill said , just say no .

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