So here’s the thing…I’m looking to rent I’m 54yo single guy on universal credit the only person that I could get to guarantor me would be my 78yo father who’s a pensioner who for obvious reasons is retired and not got a income coming in apart from his state and private pension.when landlords ask for guarantors is it for a fixed period of time while I prove myself or is it forever???
Regards
Alex
Guarantor is for the duration of tenancy. Usually they must be a homeowner.
There are guarantor services provided by companies that some landlords accept.
Thanks Mark
I notices a conversation about services that provide guarantor services…how do they work and what’s the pros and cons??
It’s actually only legally for the duration of the tenancy while the rent remains the same. Guarantors cannot be held liable for rent once there is an increase because this would fall foul of consumer rights.
I think that depends upon the deed
Off the top of my head I think the n r l a deed accommodates rent increases
The guarantor contract/deed I use allows for the increase, though has yet to be tested.
well tell that to Tessa at Landlord Law blog. I asked her this specifically and she said it wouldn’t stand up in court even if you only held the guarantor liable for the portion of the rent that they’d initially agreed to.
I have to say that this doesn’t sound fair to me, but it does kind of water down the “guarantee” of using a guarantor.
FWIW, my deed also accounts for rent increases, but that may be pointless in law.
On reflection, I only very rarely increase rent while a tenant is in situ preferring to increase to market value on tenant changeover. For that reason, it’s highly unlikely that a tenant who has, say, been paying steadily for a few years, is suddenly going to stop paying if you increase the rent by a reasonable amount that they agree to beforehand. IOW, in my situation, it’s unlikely I’ll ever need to rely on a guarantor when there has been a rent increase. YMMV.
How many more possible ways can things be stacked against the landlord! The idea of this is so unreasonable.
I have been doing the opposite over the last few years with gradual modest increases. Have found previously that some were paying just far too much below market value so was kicking myself a little. Imagine trying to get the guarantor to agree to new terms if this is infact needed.
Quick read of shelter says as long as in contract then ok, but I don’t have a lot of faith in these people. Would love to know if this has ever been tested in court.
For a cast-iron guarantee, wait longer to increase rent and do it in a larger increment with new contract with guarantor re-signing. Best to be up front that this is your policy early on in the tenancy so that they can anticipate it.
How willing have you found the guarantors in signing a new deed? I’ve avoided thinking they will resist.
Never done it. The only T with a guarantor that I’ve ever issued a rent increase to is so solid I don’t need a guarantor for her anymore so I didn’t bother.
I have heard her say that too.
I have actually renewed ASTs and guarantor deeds to cover myself in certain situations
I have done it with no problem but they were keen for their son to keep living in situ.
I haven’t tried it with guarantors who were reluctant to guarantor it in the first place .
Students guarantors have to go it every year
Hi Alex ——last week I came across an information ——just Google it —— when a guarantor provided as you renting a place. Anyone can be your guarantor as a matter of fact and friend can stood up for you
iM looking for a guarantor services too ——if you find faster let me know —— Thank you.
Guarantor is not for the duration of the tenancy.
Usually it works that if the tenant is a good risk and keeps paying the rent that’s all that matters. So tenant pays 6 month rent in advance at outset of tenancy on benefits with no guarantor, then continues paying it monthly for 12 years. No defaulting. That was / is my situation.
However many landlords on here say it’s industry practise to institute processes where you still get the tenants to sign up to another 6 month in advance or get guarantors etc, otherwise throw tenants out. That’s not in the landlord interest if the tenant can afford to live there born out of hard cold experience.
Unbelievably landlords, the tenant does have to have quite a big interest to pay the rent in however means they can because otherwise they are homeless!
Lots of lettings agents say guarantors should have x30 monthly rent earnings per year, which excludes loads of retired people. Also with rents well above earnings this old fashion rule is way out of date with the onset of the renters rights act. And landlords should not get to decide what is affordable,
If the original poster is a good risk, has never defaulted, and this can be provided from bank statements or references, has family help or other earnings, then it is simply the case he can afford the property and all the other noise is incidental to this. Renters need way better protections on this score.
Of course if the tenant has defaulted then you bring all these protections in and only then do you make it onerous. What you don’t do is make it onerous for good meaning mature people who are probably like me at 50, not in a good place with their lives. Or at least it is very difficult and they basically need a chance.
Thank you @S-155 thats is very detail heart out data! Thank you —— I agree —— some do look for a protection and negative thoughts predictions for sure. I do understand thats there is such thing as a bad experience ——- some never wish to recover —— it would always fall on a good person —— funny(!) I truly appreciate the experience you shared here. Appreciate You ——