Can benefit tenants be accepted for your rent guarantee insurance products?

Can benefit tenants be accepted for your rent guarantee insurance products?

Dear Samii

I would like to take out a rent guarantee policy with RentSafeuk.co.uk for a tenant on benefits, is this possible?
Is so, what criteria must they meet?

Samii says

Yes, at Tenant Referencing UK tenants in receipt of benefits have a chance of being insured for RGI through Rent Safe IF they have a guarantor.

Guarantors for benefit tenants must be financially sound and own their home to qualify, so they should be referenced in the same way as the applicant.

There are two types of guarantor that DAS will accept for Rent Guarantee Insurance:

1. When the applicant tenant can afford the rent, or has a settled CCJ (basically has a bad credit score) and therefore needs extra security in the form of a financially sound guarantor.

2. When the applicant tenant has a good credit score but cannot afford the whole rent and needs a subsidence from their guarantor;
e.g. tenants on benefits.

Did you know you can reference a tenant and their guarantor for just £60 at Tenant Referencing UK? Click here for full information.

Have you got a tenant referencing question?
Then simply email samii@landlordreferencing.co.uk and it may feature here, helping other landlords and letting agents with the same query in the future.

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Author: News Feed

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