Referencing issue

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    Referencing issue

    Hope someone can help, I have a property which I rent out for £1000pm I have 3 tenants who live their, but only 1 tenancy with the 3 people on it, the lead tenant then makes a dd every month for the amount of £1000, each person on their own can not afford the rent due to their low salary, but all three together can easily pay without causing any financial pain (using the 30x rule of thumb). The problem is when I go a reference check they do it on on an individual basis and each one then fails, purely based on income, do I therefore have to :

    1. Reduce the rent on the application to the reference company to 1/3 of the £1000, and apportion the amount to each tenant?
    2. Have to issue 3 tenancy agreements to each tenant?

    or is there another way around this?

    #2
    If they already live there why would they want to be referenced? They don't need to agree to it, not any change to their tenancy, nor any new tenancy.

    Why do you wish to reference anyone - sorry,I'm old and your query confuses me..
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Originally posted by theartfullodger View Post
      If they already live there why would they want to be referenced? They don't need to agree to it, not any change to their tenancy, nor any new tenancy.

      Why do you wish to reference anyone - sorry,I'm old and your query confuses me..
      This ^^
      (I’m young and it confuses me!)

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        #4
        Ignore the aspect whether or not the tenant lives there, the question is merely, what do I do in regards to their income and passing the affordability aspect.

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          #5
          You currently have an agreement which ensures that you get £1k per month, regardless of how they get the money together between them. If one person is short of cash, the others have to club together and bail them out otherwise the entire tenancy is at risk.
          If you clearly split the liability you will only ever get what each tenant is due to pay, with no consequences on the other two if someone fails. I don't see an immediate benefit.
          I may be a housing professional but my views, thoughts, opinions, advice, criticisms or otherwise on this board are mine and are not representative of my company, colleagues, managers. I am here as an independent human being who simply wants to learn new stuff, share ideas and interact with like minded people.

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            #6
            There is no such thing legally as a lead tenant, (except in the minds of deposit schemes). If only 1 tenant pays rent, what you may have there is a single tenancy with the tenant taking in lodgers.

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