Hi all - anyone have experience of letting to students whose only income is student loans - though the couple each have a guarantor. Thinking of accepting referenced guarantors plus 4-6 months upfront rent? And mebbe same upfront rent every term? Anyone done this?
If you do take up front rent each term then make sure its clear in your tenancy agreement that the term is monthly and you are taking say 4 x monthly payment in advance on each specific date.
Also read about best practice on using guarantors as they may be unenforceable if you don’t follow it. If you are doing a joint tenancy then its likely that the guarantor for each student will want to limit their liability to the debts of their nominated tenant. You will need a specific form of limited guarantee in this case.
Hey thanks David - very useful info especially re limited liability of guarantors - didnt know that! Thanx a million. Anne
Depending upon when you start your contract ( normally 1 July) you want to ensure your last term is only two months ( just in case you need to serve an eviction notice)
We have two months, four months, four months, two months specified to be paid on dates that coincide with the loan payment. That varies depending upon the borough.
I would advise the Michaelmas and Hilary terms are paid on 15 September and 15 January respectively and Trinity paid mid to end April ( that will , an average, cover the loan arrivals)
If the loan is late ask the student to provide evidence ( print screen of student status) or bank statemtent ( and put that in writing as a clause)
As David says, specify the term and rent £xxx paid monthly ( again this is to facilitate an eviction notice).
Specifiying a budget avoids problems too.
If you are doing bills included you may want to budget eg £15 per person per week and let them know what you are spending so if the budget runs out you are not out of pocket. You may want to document meters etc are not topped up if rent is not paid ( so again you are not out of pocket)
Personally, my guarantors have joint and several liability ( as per the practice of our estate agent and my solicitor). That is in your best interest. We have not yet have a refusal once the tenant decides upon the house.
Thanks for this information too! Very helpful and informative!
Hi again. We have 2 student applicants. Each gave a parent as guarantor. I has failed credit check as does not have permanent employment contract. The other parent has passed all checks and is happy to be guarantor for both student applicants his own daughter and for her partner. He has a high salary and is a house owner. We are minded to accept this but want a cast iron agreement. How can we ensure this? Is it enough to have an extra clause in the tenancy agreement or can we have an extra signed agreement as sole guarantor? Advice needed please!
The NRLA has guarantor agreement
It’s the unlimited guarantor agreement. that guarantor can cover both students
Send the notes along with the agreement
Sign all documents wet not digital
Send the contract and the agreements is advance ( 5 days) to all parties so they have to mull over ( it cannot be disputed later on)
Name the student with a guarantor as the tenant and the other party as a permitted occupier
Thanx for this. I want the situation to be crystal clear and dont think the clauses in Openrent tenancy agreement are clear. Do u agree!
I use my own contract
I take rents termly in line with loans etc