Tenants with guarantors? Would you

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    Tenants with guarantors? Would you

    Hi

    I have a three bed house to let for 650 a month and today after chasing the letting agent who is vetting potential tenants for me have sent back saying all ok with a couple who viewed it early on during the refurb. What I had not considered was that the tenants want to use her parents as guarantors as the male tenant can only show about 13k a year self employed wage and the female partner does not work at all with one small child. My question is would you proceed with these assuming you could tie in the guarantors properly or would you simply seek tenants who looked better equipped to pay the rent etc?


    Facts

    Couple not married in late 20's with one small child a possible tenants

    Her parents ready to act as guarantors home owners and earn 40k between them

    Previous landlord reference is ok


    Letting it wil not be a problem as there is a huge shortage in my town at present. Also It has been refurbed to a very nice standard.

    #2
    I think I'd either look for more appealing tenants
    or ask for enough deposit to offset my risk.

    It's a business, even though you're dealing with people who you might feel like helping.
    After a while, that feeling goes away...
    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


      #3
      Depends on age of child. If under 5 I would worry about crayoning on newly painted walls.
      To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

      Comment


        #4
        Child is under 5 but I don't mind the walls etc as this can be adjusted through deposit, more interested in if they are even viable with guarantors?

        Comment


          #5
          If you'd rent to the guarantors, they're viable (just more trouble than renting to someone like the guarantor)
          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


            #6
            Guarantees are not easy to enforce for many reasons though I would never rent out to a T without a Guarantor. However, there is no substitute for having working tenants on stable jobs and good salaries because utility bills are paid on time and those property maintenance jobs that are T's obligations get done.

            Comment


              #7
              Many referencing agencies use the 30 X rent formula. Shelter suggest multiplying monthly rent by 34. If the household income does not exceed this amount applicant cannot afford the rent. Personally wouldn't want tenants stretched on rent from outset but are they going to be seeking LHA and if so are you ok with this?

              Comment


                #8
                Are you saying even for working tenants you would want a guarantor? The wages for the would be tenants do not come close, and I am guessing my risk is increased greatly relying on guarantors as a fall back?

                Comment


                  #9
                  No I don't want benefit tenants ideally as it is a three bed with only one child plus no need to take on the extra risk at present with high interest level. Are you sure multiply by 34
                  Originally posted by Slepewalker View Post
                  Many referencing agencies use the 30 X rent formula. Shelter suggest multiplying monthly rent by 34? That is 22100 net and the main tenant only has accounts as self employed showing 13k earnings?

                  . If the household income does not exceed this amount applicant cannot afford the rent. Personally wouldn't want tenants stretched on rent from outset but are they going to be seeking LHA and if so are you ok with this?

                  Comment


                    #10
                    Originally posted by barriejames View Post
                    Are you saying even for working tenants you would want a guarantor?
                    YES! Since I started doing this a few years ago my Ts have become better well behaved.

                    Comment


                      #11
                      Try tenantverify.co.uk -affordability calculator.

                      Comment


                        #12
                        Thanks comes back at 19500

                        Comment


                          #13
                          I have never gone this route if the tenant checks out it is extra protection but my agents have never suggested this for tenants who walk through the vetting and checks etc
                          Originally posted by londiner View Post
                          YES! Since I started doing this a few years ago my Ts have become better well behaved.

                          Comment

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