Guarantor details

Landlord Discussion
1

Dear All

I have potential tenant who is getting through the referencing with open rent. She is UC with 13years. However Credit checked passed. waiting for referee response from employer. She has given me guarantor ref: with name and email address. What do i do now with guarantor details now? first time for me so i m not sure how is work. Do i need more details from guarantor? Please help.

I m thinking to take out rent guarantee insurance from open rent as well as things are daunting at the moment( especially for first time and Landlords) at the moment.

It would be great if any advice from you experience Landlords.

Regards

K

2

You should also reference check the guarantor the same as you did for the tenant. The guarantor will be subject to a higher bar, which means they will have to be able to afford their own lifestyle as well as the tenants.

Best!

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3

@Kay8

Reference check the guarantor otherwise you have no idea if they actually can step in and cover the rent if the tenant doesn’t. And if tenant failed affordability but guarantor passed you can still get RGI normally

Good luck

4

Thanks you so much for all the replies.

Just got back the report

Tenant passed all checks , guarantor failed credit check, affordability checks.

I do think u can get RGI. I don’t know what to do.

What is your thoughts. I should withdraw the application.

Thanks again for your time.

5

I would ask if they can provide a new guarantor perhaps?

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6

@Kay8

As the tenant passed the checks you’ll likely be able to get RGI without a guarantor.

You can always ask the insurer before deciding to go ahead

If guarantor failed affordability and credit checks they aren’t going to be much use as a guarantor so asking if tenant can provide a different one is sensible.

There are also companies which provide a guarantor service to tenants - for a fee. The problem is if the tenant doesn’t pay the annual renewal fee..

Remember there are always other tenants.and it’s really hard to evict (3 months rent arrears plus 1 month notice plus average 8 months to go through courts to evict) so getting the right tenant is more important than ever.

Good luck

1 Like