My tenant’s guarantor is a retired widow. She has savings that would cover 18 months rent - it’s only a 6 month tenancy and then I plan to sell. OpenRent don’t take her savings into account for affordability, only her pension, so I can’t get RGI. Do I ask her to prove her savings and accept her anyway?
Does the tenant know that you plan to sell in 6 months time? Given the state of the market, it may not be possible for your tenant to find another place quickly and you may be faced with a long wait before you can sell the property. Are you ok with this possibility?
Yes, the tenant does know I’m selling and yes, I accept there is a risk that it might take a bit of time for them to find somewhere.
Did you have an answer to answer my question?
Totally YOUR DECISION and one you can’t outsource. I almost never have RGI but - if you have it and value it and want to keep it you need you should tell them right away and not mess them round.
If on the other hand you are willing to forgo it then on the basis you have a guarantor YOU think can give you enough security that be welcoming and positive towards the tenant.
But no-one else can decide for you .
What does the guarantor agreement set out in the terms. Normally the guarantee only lasts as long as the agreement i.e. 6 months. When it goes periodic, you’ve no guarantor and no way to get the T out without going to court.
The issue may not be the finance, but the terms of the guarantee you are using.
the lease may state that the guarrantor is for the whole of the tenant being ,there even when periodic
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Sorry, no. Ive never used RGI either and only taken a guarantor once.
The guarantor remains obligated for the entire term of the tenancy, even if it goes periodic.
Not necessarily - unless you are referring to a specific OR one.
There is no statutory obligation on a guarantor. Only the terms agreed within a specific agreement which may or may not cover the tenancy or just the AST. And even if the wording did say ‘whole tenancy’ then it could be challenged as an unfair terms.
CAB has this on the subject
Unfair terms in a guarantee agreement
A term might be unfair if it creates a ‘significant imbalance’ between the parties to the agreement. If a term is held to be unfair then it cannot be relied on and has no effect in law.
If the landlord tries to enforce a guarantor agreement that contains an unfair term, the guarantor could ask the court to decide whether the term is unfair.If the court agrees the term is unfair, it will decide whether the guarantor still has to pay.
You can refer a possible unfair contract term to the local authority’s Trading Standards Officer, who should be able to provide further guidance.
So if in doubt, have a word with Trading Standards **
** Unfortunately the some LL are not as honest as others and see statutory obligations as non-binding never mind contractual ones.
Noted. Thank you EmanNeercs.
Hi, Susan.
Sorry if I’m a bit late with my advice. In a similar situation I would ask tenant (or their guarantor) to pay for the whole 6 months of the tenancy. If both of them are serious about their financial responsibilites to you, they should be willing to put their money where their mouth is. If you sacrifice your RGI, they should make accommodations from their end. I’d say it’s fair.
It won’t protect you beyond initial six months, but it will show the right attitude and committent on their end.
Hi Tim, that is exactly what I had decided to do on the end. Many thanks for your advice. 
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