Tennancy - using a rent guarantor

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    Tennancy - using a rent guarantor

    Hello;

    I've got a tennant applying to rent, everything seems normal, visited the place with her mum and has 2 teenage boys. She works part time but not enough to get approved for the rental payments. She has offered her mum (also working and home owner) as guarantor.

    Through openrent the credit checks fail her mum as guarantor as her income isnt massive either, despite her fully owning a house.

    What should I be doing here, as i see it, the guarantor should pass as she is a home owner - so surely will be able to pay any damages or missed rent?

    Thanks.


    #2
    It's always landlord's decision. Entirely legal to use a 18yr old unemployed looser with no assets if you wish.

    How much equity does she have

    Your choice your decision:. Use a deed.
    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...

    Comment


      #3
      Yes i appreciate i can choose who i want - be they poor or not, but being christmas time, tennant choices are few and far between! This tennant seems fine and they have been in prior property for 10 years. Working for 4 years in stable job etc.

      But why would a check on a guarantor fail as she fully owns (no mortgage) a house! Surely this is the perfect guarantor as she will not want to have to sell the house to pay silly repair bills on her daughters rental!?

      Comment


        #4
        Originally posted by eniacs View Post
        But why would a check on a guarantor fail as she fully owns (no mortgage) a house!
        Because she needs sufficient income to cover both her current outgoings and the rent on your place?

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          #5
          Mdeb - Surely if the original tennant could not pay the rent suddenly, then i would start eviction and claim the difference from the guarantor. I wouldnt keep an nonpaying tennant and ask the guarantor to pay indefinately?

          I suppose i am assuming that the tennant can pay the rent with other income which doesnt count towards the credit check. As would be the guarantor, unless the mother actually tops up the daughters income, which i find unlikely. More like the daughter tops up her income with tax credits.

          What alternatives are there?

          Comment


            #6
            the alternatives are other tenants.

            If you take this tenant on with her mother as guarantor, you have to be willing to accept that if she doesn't pay and her mum doesn't pay you could ultimately be in a situation where you are evicting a mum with two teenage kids and forcing someone to sell their home to pay debts their family member has incurred and they can't pay.

            If you can deal with that worst case scenario, and the stress and initial cost to yourself, then all is fine.

            When taking on a guarantor, you have to be able to envisage the worst case scenario because that's what guarantors are for. There's no such thing as a guarantor's guarantor.

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              #7
              Check the home owner - there might be so many charges on the property that she has no or little capital in it. An experian full credit report will show this.

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                #8
                Only offer prospective T a fixed Term AST for 6 months. Ref the G.

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                  #9
                  Wait til the New Year - always new renters on the scene as overcrowding at Christmas gets to people.....reason mother for failing checks could be credit card debt etc



                  Freedom at the point of zero............

                  Comment


                    #10
                    I agree with the above.
                    Better a void than a bad tenant.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #11
                      Mother didnt fail credit checks, only the guarantor part. She hasnt the income to cover the rent. I appreciate what you've all said and I've gone back to her to ask if there is someone who could afford the rent and act as guarantor.

                      You are right as well, the new year will bring new renters.

                      Its a shame as she is obviously a genuine person with a good history who could pay the rent. But the renter checks say dont rent to her. This is my first time dealing directly with enquiries as I've always used a agent befor as I was abroad. But now dealing with them direct i feel bad for them.

                      Comment


                        #12
                        good that you have a conscience... but imagine how much worse you will feel for them if you have to evict them.

                        Comment


                          #13
                          Yes you are right. I've explained to them and they understand. They have come back with another guarantor who has a higher income so will try that. Also have another viewing tomorrow with someone else as a back up.

                          Thanks for assistance. Great forums.

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