Advice required

Landlord Discussion
1

Good morning Landlords
I need some advice, I cannot use a homeowner guarantor, we are not all in the position to have someone to ask. My question is simple… what alternatives are acceptable?

2

There are companies that offer a guarantor service, some landlords accept this.

3

Thanks Mark, I have tried that route and happy to use, however i am constantly knocked backed in favour of a homeowner. I’ve also offered 3/6 months in advance. Extra insurances and tacking out my own insurance to cover default ( not that I ever have) and the hounds…any other ideas?

4

Sadly, the government have removed much of the flexibility you have tried to use;

  • Taking out your own insurance - likely this would fall foul of the Tenant Fees Act as the Landlord would be the benefit of the policy, and you paying would be an unallowed fee.
  • Paying 3/6 months in advance. Gov will shortly make this illegal in the Renters Rights Bill

Basically, the government are intent on strengthening tenants rights, which in turn makes the risk more for Landlords. Therefore, as a rule, those Landlords that are not selling up, are not taking the risks that they used to, and are picking only A* tenants, and that includes those who have a homeowner guarantor.

The Governments trying to make things better for tenants, is making it worse. they have been warned of these unintended consequences consistently, but they are not listening. Speak to your MP. Tell them how hard it is, and that they are not helping!

5

Thanks Karl, I had read the bill and I couldn’t see who it was supporting on either side.Only a lot of holes and backdoors. However you have confirmed my fears as to what is happening. Where I go from here is a mystery :thinking: