Do we really need a guarantor?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • 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.

    Comment


    • #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

      Comment


      • #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.

            Comment


            • #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).

              Comment


              • #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.

                        Comment

                        Latest Activity

                        Collapse

                        • Claiming for protected deposit
                          mandm
                          This is an interesting one, got me into a spin.
                          Tenants signed AST but decided to leave after 6 months and 3 days (problem with moving) using the break clause in the AST. I protected the deposit using DPS (Insured) and returned the deposit minus deductions when the moved out.
                          I served the...
                          21-07-2017, 08:00 AM
                        • Reply to Claiming for protected deposit
                          MrShed
                          JK - there are *some* upsides of taking a deposit. The main two for me:
                          1) Regardless of what it can feel like on here, the majority of tenants do not know they can play the system in this way.
                          2) There is something to be said for the mindset of a tenant who has something "invested"...
                          21-07-2017, 08:19 AM
                        • Discussion - GDPR and implications on landlords
                          MrShed
                          I've just posted something on GDPR and then wondered whether it had been discussed on here before - a quick search implies its never been mentioned.

                          I thought I would raise a topic to discuss it and the implications on landlords.In effect this is a replacement of the Data Protection Act...
                          20-07-2017, 15:01 PM
                        • Reply to Discussion - GDPR and implications on landlords
                          jpkeates
                          The ICO should be fining landlords for not registering as data processors - they're not.

                          The maximum amount of personal data held by landlords and agents arises out of tenant referencing, and, if that were to be destroyed after a couple of months, most landlords would arguably be pretty...
                          21-07-2017, 08:16 AM
                        • Reply to Claiming for protected deposit
                          JK0
                          I'm afraid this rant won't help you much o/p, but:

                          STILL!? Still landlords are giving tenants a way to wheedle thousands out of them for no good reason?

                          I have come to the conclusion this whole deposit protection nonsense is a government sponsored scam. There is barely any...
                          21-07-2017, 08:12 AM
                        • Reply to Claiming for protected deposit
                          jpkeates
                          They are probably claiming that you didn't protect the deposit and give them the Prescribed Information document, both of which you are required to do within 30 days of receipt of the deposit.

                          If you didn't do both things to the appropriate deadline, you didn't protect the deposit correctly....
                          21-07-2017, 08:09 AM
                        • Reply to Discussion - GDPR and implications on landlords
                          jjlandlord
                          Source: http://news.pwc.ch/31824/gdpr-key-ch...-eu-companies/

                          That being said, I don't think it will have much impact on landlords:



                          I don't think that'll be the case. References are legitimate and widespread.



                          ...
                          21-07-2017, 07:51 AM
                        • Help. Scam/ fraud letting
                          Hayleydenice93
                          Hiya

                          i need some advise on my situation in regards to this flat offered to me and my partner. We viewed a flat which was in an old office block which had been converted into service apartments and then refurbished into flats.

                          The agency we viewed the flats through did not want...
                          20-07-2017, 20:59 PM
                        • Reply to Help. Scam/ fraud letting
                          theartfullodger
                          You do not have to own a place to be the Landlord. Suspect they rent from owner (their Landlord), they then rent (as your Landlord) to you.

                          Doubt there's any chance of getting proper tenancy from them. You could sign licence, move in, then try and get rights as an AST Tenant (eg sue for...
                          21-07-2017, 07:46 AM
                        • Claiming for Non protected deposit
                          charliesugar
                          This is posted on behalf of my cleaner who approached me for help after her last landlord failed to reply to her repeated requests for return of her deposit.
                          She rented a room in a shared house in London, AST, weekly rent all paid on time. Notice given and accepted, room left neat and clean....
                          27-06-2017, 13:18 PM
                        Working...
                        X