If you have multiple tenants, it’s really important to work out that their combined household income covers the affordability required for the tenancy to be eligible for flatfair. If it doesn’t then, unfortunately, they will not be eligible for flatfair and we recommend proceeding with a traditional deposit.
If you are referencing multiple tenants, it is standard for reference providers to assume an equal rent share (e.g. 1 tenant at 100% rent share, 2 tenants each at 50% rent share and so on).
However, this might not line up with the tenants' income. In cases where the rent share for one or more of the tenants needs to be different, it’s really important to let your reference provider know this in advance of the checks being completed. They will then be able to reflect the adjusted rent share on the report.
flatfair is only able to accept tenants with reference reports which demonstrate that the combined affordability has been met.
If a property costs £1000 a month, the level of affordability required by the tenants is a verified combined income of £30,000. (at a ratio of 30x monthly or 2.5x yearly income over rent)
Tenant A has an income of £10,000 which means that their maximum rental affordability per month is £333.33 (£10,000 divided by 30).
But tenant B has an income of £20,000 which means that their maximum rental affordability per month is £666.66 (£20.000 divided by 30).
Therefore, their combined household income adds up to cover the required affordability of £1,000 per month.
So when submitting the above reference request, make sure that the share of rent for tenant A is 30% and for tenant B is 70%.