Hi, I’ve been a landlord for 15 years but I’m after some advice please. Young tenants have just separated and one of them wants to stay and her mum has offered to be a guarantor. I dont have any experience of guarantors. I’ve read that they must earn between 22 and 40 times the monthly rent? Why the large discrepancy and do any of you have experience of guarantors. Advice please!
The guarantor needs to have equity of the tenant defaults
Ideally they should have be a home owner or have savings
This is so if they have to cover your tenants default they have assets to do so
Don’t know about the stated multiplier range as depends on guarantors outgoings. However, guarantor needs to be able to cover their outgoings as well as your rent. ie. They either have a very good and provable regular income or they have assets in the UK. Make sure you reference the guarantor. Its more important than referencing the tenant in many ways as the buck stops there. You want the guarantor signed document as a deed rather than just some additional clauses in the AST.
My advice, if you don’t understand any of this, step away from this arrangement, do some reading/training and find a new tenant that doesn’t require a guarantor.
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Hi A_A
What is the reference to this, please? I would like to use it for my own case. I have found a tenant whose 2 guarantors fall short from this massively.
I’m not very convinced that l should go ahead, especially with all these news rules and insurance shenanigan.
Thanks for your time and contribution.
This is the advice I have received from Tessa Sheperson and David Smith attending the landlord law conferences / webinars
The more fundamental question is can she afford the place on her own?
Many thanks for your comments everyone