Foreign Students Without Guarantors

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    Foreign Students Without Guarantors

    Estate agents found tenants for my property - students from overseas who want a 10 month contract as they are returning overseas after this time. The EA said they wanted to move in asap but the guarantors had not yet had the necessary reference checks done. EA wanted me to allow them to move in now if they pay 3 months in advance.

    I was worried to let them in without checked guarantors in place and suggested they move in on a 30 day holiday let until the guarantors are checked. The EA also got them to sign an AST, although I did not sign this, and the Ts have not been given a copy of it (it was meant to replace the holiday let contract when guarantors where successfully checked).

    It now transpires that a guarantor who was to guarantee two of the students has decided against it. The EA is trying to persuade me to let them stay without the guarantors if they pay every 3 months in advance but I am worried they could damage the property, fail to pay the last 3 months rent and then disappear overseas.

    The EA has put this clause in the AST: "It is hereby agreed by all parties that should the Guarantors not be acceptable to act for the tenants then rental payments will continue to be required quarterly in advance.

    Any thoughts or advice on this?

    #2
    Maybe they could pay all ten months rent in advance?
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      Originally posted by 4321 View Post
      I [...]suggested they move in on a 30 day holiday let
      Bad idea. A holiday let must be for a genuine holiday.

      Originally posted by 4321 View Post
      The EA has put this clause in the AST: "It is hereby agreed by all parties that should the Guarantors not be acceptable to act for the tenants then rental payments will continue to be required quarterly in advance.
      I cannot see that this gives any comfort.

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        #4
        Options are really either 10 months upfront, or 6 month term with 6 months upfront, then possibly consider monthly payment for the final 4 months if they've been ok. Do not touch if they don't have a guarantor, unless paying upfront.
        <a href="http://www.manchesterpropertygroup.co.uk/" target="_blank">Manchester letting agents</a>

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          #5
          Originally posted by jrsteeve View Post
          Options are really either 10 months upfront, or 6 month term with 6 months upfront, then possibly consider monthly payment for the final 4 months if they've been ok. Do not touch if they don't have a guarantor, unless paying upfront.
          Thanks for the replies. I can see the benefit of taking 10 months or 6 months upfront but what is the benefit after 6 months of taking monthly payments? Would it not be better to take a single 4 month final payment?

          If we did the 6 month upfront option and I wanted them to move out at the end of the 6 months, would I need to give them any formal notice or would that be automatic from the 6 month AST?

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            #6
            If the rental period is 4 monthly it will effect the notice period required for any s21 notice in the same manner taking 6 months rent upfront unless you have a carefully worded tenancy agreement.

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              #7
              If the Guarantor-less one(s) cannot pay the whole rent in advance, then my inclination would be to walk away from this.
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                #8
                Originally posted by mind the gap View Post
                If the Guarantor-less one(s) cannot pay the whole rent in advance, then my inclination would be to walk away from this.
                This is good advice.
                Also, a foreign guarantor is effectively no guarantor anyway.
                All posts in good faith, but do not rely on them

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                  #9
                  Originally posted by Bel View Post
                  T
                  Also, a foreign guarantor is effectively no guarantor anyway.
                  I agree. I was assuming the Gs would be UK-based homeowners. If they are not,then forget it. The cost of pursuing them through the courts in their home country would be prohibitive.

                  I have heard of arrangements where the university exceptionally agrees to stand surety for an international student's rent (e.g. if they really, really want them to study there!), but cannot imagine it is a widespread practice. Although, at least they have the option of refusing to let the student graduate if they owe any money to the institution.

                  I wish I could threaten our student Ts that unless they leave the property as squeaky clean as they found it, they will hot be allowed to graduate.
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                    #10
                    What about tenants who are from overseas but working? Is it also advised that they have UK based guarantors and pay 6 months in advance?

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                      #11
                      Originally posted by 4321 View Post
                      What about tenants who are from overseas but working? Is it also advised that they have UK based guarantors and pay 6 months in advance?
                      A Guarantor is always advisable for young/low income Ts, whether students or employed. Also ensure they have a visa/work permit for the UK (if not from an EU country).

                      If they are newly arrived from abroad, much will depend on their employment security and income. Get something in writing from the employer to verify length of contract and monthly salary. If they have not been in the UK long enough for credit checks to be useful, then a larger than usual (protectable) deposit is advised.
                      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                        #12
                        10 months upfront or find other tenants.

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                          #13
                          I had four sets of potential tenants come round today - and guess what?
                          All of them were from overseas, none of them had UK guarantors and none of them had the money to pay 6 months in advance

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                            #14
                            Originally posted by 4321 View Post
                            I had four sets of potential tenants come round today - and guess what?
                            All of them were from overseas, none of them had UK guarantors and none of them had the money to pay 6 months in advance.
                            Sorry to be negative, but why waste their time in the first place if you have no intention of letting to them?

                            Why are you aiming at a niche market rather than going for the plain vanilla?

                            I'm sure you have your reasons. So trying to be more helpful, what about letting to a rock solid tenant and allowing/assisting/incentivising them to take in foreign students as lodgers?
                            Obviously fraught with difficulties but I'm trying to get in touch with my positive side

                            Comment


                              #15
                              Originally posted by boletus View Post
                              Sorry to be negative, but why waste their time in the first place if you have no intention of letting to them?

                              Why are you aiming at a niche market rather than going for the plain vanilla?
                              No, I'm not aiming at a niche market. One particular online company I use to advertise send potential tenants my way but do not give me their contact details, just arrange appointment times. Not the best method admittedly, but I am using a range of ways to get tenants including websites and agents. Everyone looking at the moment though seem to be from overseas.

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