Do we really need a guarantor?

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    Do we really need a guarantor?

    Hello, my girlfriend and I have, along with a friend, recently applied to rent a house. Together we earn more than 3 times the annual rent of the house, which is what is required of the hypothetical guarantor.

    We have been told that we need to be guaranteed in case "you leave your girlfriend" as the two girls would not earn 3 times the annual rent. I was also told that we would not need to be guaranteed if I was married.

    It seems more than a little bit odd to me and as I have never rented before I wish to check if this is all correct.

    Thank you for your time,

    Ben

    #2
    What you probably don't understand is that the letting agent has probably used a reference agency to verify your suitability and if they require you to produce a guarantor they are only doing their job looking after the landlord's interests. The landlord can insure against your not paying the rent but only if you meet the criteria.

    The reason why you haven't come across it before is because you are most likely dealing with a more diligent agency (hopefully). If they are regulated (NAEA,ARLA,RICS) it helps you too because any money you pay to them is insured should they go to the wall or abscond.
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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      #3
      It is quite reasonable that your landlord wants to make sure he has enough guarantees that someone will pay the rent his tenants due to him/her.

      If you alone have a job that can let you earn more than the rent you have to pay, than this guarantee would not be necessary.

      Probably your tenant is looking for a co-signer (for example your parents) to have a complete coverage of the rent.
      OutRentHome.com the Home You Want, the People You Want

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        #4
        Originally posted by Paul_f View Post
        What you probably don't understand is that the letting agent has probably used a reference agency to verify your suitability and if they require you to produce a guarantor they are only doing their job looking after the landlord's interests. The landlord can insure against your not paying the rent but only if you meet the criteria.

        The reason why you haven't come across it before is because you are most likely dealing with a more diligent agency (hopefully). If they are regulated (NAEA,ARLA,RICS) it helps you too because any money you pay to them is insured should they go to the wall or abscond.
        The letting agency asked for a guarantor before they would have been able to use a reference agency.

        Comment


          #5
          Originally posted by rinomanfroni View Post
          It is quite reasonable that your landlord wants to make sure he has enough guarantees that someone will pay the rent his tenants due to him/her.

          If you alone have a job that can let you earn more than the rent you have to pay, than this guarantee would not be necessary.

          Probably your tenant is looking for a co-signer (for example your parents) to have a complete coverage of the rent.
          I can certainly understand that if I earned enough by ourselves a guarantor wouldn't be necessary, however I could still leave them (in the agents mind) and they still wouldn't be able to pay the rent easily.

          What has being married got to do with it though?

          Comment


            #6
            What has being married got to do with it though? - Nothing whatsoever I would say
            The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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              #7
              Originally posted by Paul_f View Post
              What has being married got to do with it though? - Nothing whatsoever I would say
              Guesswork: married people are more stable than cohabitants. less likely to flit between inamorata, and therefore a better proposition for L?
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

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                #8
                Originally posted by ipswichben View Post
                It seems more than a little bit odd to me and as I have never rented before I wish to check if this is all correct.
                To add to what others have said - this is not an exact science and there's no "correct" about it... it's entirely up to individual landlords and/or agents to set their own criteria for vetting tenants.

                Comment


                  #9
                  Originally posted by ipswichben View Post
                  Hello, my girlfriend and I have, along with a friend, recently applied to rent a house. Together we earn more than 3 times the annual rent of the house, which is what is required of the hypothetical guarantor.

                  We have been told that we need to be guaranteed in case "you leave your girlfriend" as the two girls would not earn 3 times the annual rent. I was also told that we would not need to be guaranteed if I was married.

                  It seems more than a little bit odd to me and as I have never rented before I wish to check if this is all correct.

                  Thank you for your time,

                  Ben
                  This is happening to you because there are some BAD tenants out there who are great friends/partners, promise to pay their rent, then split up and leave one of the group to foot the bill - which never gets paid. Guarantors give a LL 'some' protection from this scenario. It's not personal - just business, from the LL point of view.

                  Married couples are hopefully a little less likely to split than courting couples, so may seem a safer proposition to many older married LLs (like me!)

                  Of course, if you don't like it, it's your choice to go elsewhere, but it is perfectly normal practice.

                  Comment


                    #10
                    Originally posted by ipswichben View Post
                    What has being married got to do with it though?
                    I have seen many posts saying "I rented a house with my boyfriend/girlfriend and now he/she has left me and I can't afford the rent".

                    But I have never seen a post saying "I rented a house with my husband/wife and now he/she has left me and I can't afford the rent".

                    There's no doubt about it --- statistically speaking, you are more likely to split up if you aren't married. It's just common sense on the part of LA. If I was in their shoes I'd do exactly the same.

                    Peter

                    Comment


                      #11
                      Originally posted by pcwilkins View Post
                      I have seen many posts saying "I rented a house with my boyfriend/girlfriend and now he/she has left me and I can't afford the rent".

                      But I have never seen a post saying "I rented a house with my husband/wife and now he/she has left me and I can't afford the rent".

                      There's no doubt about it --- statistically speaking, you are more likely to split up if you aren't married. It's just common sense on the part of LA. If I was in their shoes I'd do exactly the same.

                      Peter
                      I am married husband left and I am unable to afford rent, looking for a cheaper place but I need a guarantor and ex has refused to sign (we have dependant children). . . what is the crieria for a guarantor? . . info' greatly appreciated as in awkward situation. thanks

                      Comment


                        #12
                        Originally posted by cariad181 View Post
                        . what is the crieria for a guarantor? . . info' greatly appreciated as in awkward situation. thanks
                        Different L/L's and agents have different crieria. We require someone to be a house owner or have a mortgage on a property (normally parents) which is then checked out on the land registy website. It is then made clear to them that we will demand the rent off them if the tenant defaults. Even if they dont pay up you can (so i have been told ) put a charge against the property after getting a court order so it cant ever be sold without paying the debt.

                        That all been said, all we have ever had to do (only twice) is write to the guarentor when rent not paid and surprise surpise the tenant comes in with the rent. Proberly after a few f--ks thrown down the phone by the guarantor to the tenant.

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