Guarantor for tenants?

Guarantor for tenants?

9:41 AM, 2nd May 2023, About 2 years ago 11

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Hello, If anyone has children in university, they’ll be familiar with the annual signing of the guarantor agreement, promising to pay the rent should your young student fail to do so themselves – and, if you don’t read the agreement carefully, their flatmates rent too.

But, what are the pros and cons of asking for a guarantor for more ‘grown up’ tenants – and possibly even insisting the guarantor be a home owner or, at least, have a mortgage?

The benefits are clear – if the tenant fails to pay their rent, you have someone else who can at least apply pressure on your tenant to pay and, if it comes to the worst, someone else to collect the rent from.

But are there any disadvantages to this?

Clearly, some tenants won’t be able to do this, so you limit the ‘market’ for your property. But are there any other downsides?

Please share your experiences and opinions on this!

Thank you,

Adam


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Reluctant Landlord

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9:17 AM, 5th May 2023, About 2 years ago

Reply to the comment left by Stuart Parker at 03/05/2023 - 11:22
issue is if they dont have one! A guarantor would only be sought if they didn't pass referencing so the fact remains on paper they aren't seen as financially secure themselves and a risk...

If they pass referencing off their own back then RGI offers a bit more protection surely - otherwise you are going on trust and the hope the pay the rent!

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