Tenant referencing affordability

Hi all,
I have found a tenant through open rent and he failed referencing due to CCJ. He got a garauntor who earns 46,271 pounds per annum and the rent is 1095. The rent guard referencing did through open rent has declined the garauntor as unsuitable due to less income. They want 4 times the monthly rent. I am not sure what to do as I want to take rent garauntee but won’t be able to do this due to the guarantor declined this. Speaking to other tenant referencing agencies I found out that they calculate it as 3 times the rent for the garauntor. Has anyone got this situation and any advise will be appreciated. Do I reference them again through another agency and will that impact their credit rating ? Thank you.

If you search on the forum there is a lot of advice on CCJ’s and whether you do or don’t
You need the guarantor

If the guarantor has declined I would not take the tenant

The garauntor has only declined due to high affordability where as other companies just need 3 times of rent.

It’s really up to you whether you want to try again. If it’s a full check which I would suspect it would be for Rent Guarantee insurance then it will be shown on their credit file.

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If the guarantor is a home owner that is usually considered enough equity by solicitors
Tessa S advises they are home owners or have other source of equity

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The referencing is only a report for you to help you assess the suitability of the tenant. Several of my tenants have failed referencing for trivial reasons that they were able to explain to my satisfaction. Since rent guarantee insurance is not currently available through Rentguard, and is not something I would have recommended anyway, I don’t see the problem.

Having said that, you should check exactly what the CCJ is for and whether he is paying it off. If its for anything to do with renting, then it would be an automatic rejection from me.


If the Rent Guarantee company don’t think the guarantor is a good bet, why should you?

I’d walk away from any tenant with a CCJ, guarantor or not. I would only accept a guarantor if they failed due to income but had a good record of paying their bills.


I had a similar situation recently when my rental property became available. If I were you, I’d highly recommend letting only to candidates who pass the comprehensive referencing offered by Openrent. It’s inexpensive and very detailed. Since RentGuard no longer offer Rent Guarantee Insurance, I went with Mudhut. It gives me peace of mind and few sleepless nights! In order to be eligible for Mudhuts insurance, your candidate or their guarantor must pass the referencing.

The last thing any landlord needs at the present time is a problem tenant. It’ll give you the
mother of all migraines and you’ll end up pulling your hair out.

Good luck


Thank you for your response.

I had the same but I took on the tenants anyway on the basis they both had good jobs and although the guarantor didn’t have 4 x income they owned a property so had equity. They were the perfect tenants.
You can’t get guarantee insurance through rent guard anyway.

I guess it’s really about how good the market is for you right now and whether you have a lot of choices. Right now, on the south coast, within 1 day of marketing, I get about 40 enquiries, so any fail for any reason would result in a sorry because I can grab the low hanging fruit.

If I had properties in London, with the market as it is right now, I would probably take the risk due to being Hobson’s choice.

IIts your call - just think yourself lucky you have that choice. If you went through an agent most of them will just tell you they had done a credit check, not the results. I have ended up with so many bad tennants through agents, and non through open rent.

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