HI - anyone been in the situation where the tenant and the guarantor failed reference checks? what have you done in this situation.
Yes Moved on No point in having a reference done if you ignore or look for ways around it
i understand that, but i could get the rent upfront. this is what i am thinking of doing! what with covid here and not being able to get people in for viewings i am restricted!
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Well its your call i would take no less than 6 months. What will you do after 6 months if they dont pay ? or if they say i can only afford 3 months
well its going to be a 6 months tenancy agreement initially, so I think 3 months upfront is a commitment and hopefully it will mean they will pay the extra 3 months without issues…if they don’t then obviously we will terminate after the 6 months…
It may not be as simple as terminating after 6 months if they dont pay as you’d still need to give notice and potentially deal with lengthy delays it court.
For guarantors they often dont have spare income but do sometimes have significant assets which could be used for the rent if needed. These assets are completely disregarded in the references so you could ask further questions if you like the potential tenants. Ultimately it is your choice what is acceptable, not the reference company.
thanks Richard - If I put into the contract that no payment after 10 days of the rent being due we can evict them within say 5 working days?
Afraid it doesn’t work like that! If they are 2 months behind you can issue a section 8 giving them 6 months notice then if they dont leave evicting via courts could take a further 12 months plus. After 4 months of tenancy you can issue a section 21 which also needs 6 months notice. These notice periods will supercede anything you put in your contract.
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This could be a huge risk, depending on the reasons for them failing
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so what is the point of having a 6 month rental agreement? it doesn’t sound like it means anything!!
the guarantor failed the reference check purely based on his salary. the fact this person doesn’t have a mortgage to pay himself would suggest hes likely to be able to cover the rent costs. I don’t know what to do, its a difficult one…
Yes the 6 month notice period does cause a lot of issues.
Personally I’d go to the guarantor and say they have failed referencing but you are looking to be flexible but you’d like to understand how they would cover the rent if needed and provide whatever evidence you want so that you would be confident they would be able to fulfill their commitments. The fact they own a mortgage free property is a very good sign.
Adam 46 You are sounding desperate. DO NOT DO IT
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Adam, please learn what the current rules are. It doesn’t matter what you put in the contract you won’t be able to get them out for a long time if they don’t pay. I have 8 months rent owing, it’s not even the people named on the tenancy agreement in my property but I am still having to go down the legal route as they won’t go. I reckon it will be a year of rent unpaid before I can get the bailiffs as they are not going to go.