Private landlord and guarantors

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    Private landlord and guarantors

    We are in the process of privately renting our property, we have found a potential tenant however they are on DSS and have got a guarantor.

    How does the Guarantor work and what do we need to get them to sign etc. We have never done this before.

    #2
    The guarantor legally guarantees that the tenant will pay all that is due from them. If the tenant fails to pay, the guarantor does.

    The document to set this up is a deed of guarantee. Most deeds of guarantee (including those provided by agencies) are so full of holes that they can not stand up in court if the guarantor chooses not to pay. A specialist solicitor who understands landlord & tenant law is your best bet for this.

    You have obviously considered the possible risks of letting to this person, but may I offer this webpage just in case you have missed any of the ones listed there. http://tenancyanswers.ucoz.com/index..._benefits/0-54

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      #3
      Thank you for your help.

      We are still not sure if we should be renting to someone on DSS due to the risks involved. This is why i wanted to ask the relevant questions now before we make a decision.

      thanks

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        #4
        You would also be very wise to get the guarantor fully vetted and credit checked the same as you would with a tenant. You need to verify that they have sufficient income and assets to cover the cost of rent and damage to your property if the tenant defaults. Anyone can say they will be a guarantor, but unless you check them out, how can you be sure they are in any better financial standing than the tenant themselves!

        By the way, I have let for 11 years now and in that time all but 1 tenant was on benefits. Only 1 ever caused us problems, so there are risks, but probably no more than any other type of tenant.

        However, check you insurance, as some have a specific clause about not letting to benefit tenants.

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          #5
          Sorry, but we also had one DSS tenant, and that was the last in 7 yrs.

          Nothing but trouble, steer clear.

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            #6
            You shouldn't assume all HB or LHA claimants are trouble. One poor experience is not a benchmark. I as an agent let premises to HB claimants and treated them the same as anyone else and they were fine! Please too can people not use "DSS" as it died in the archives as a term so long ago, and is more often than not used rather derogatorily to describe some sort of underclass of disreputable tenants.
            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 Spark240 View Post
              Sorry, but we also had one DSS tenant, and that was the last in 7 yrs.

              Nothing but trouble, steer clear.
              TBH that's a bit of a generalisation - you encountered one bad one out 4.86 million claimants.

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