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  • FIRST POST
    • daxu
    • By daxu 4th Dec 17, 4:07 PM
    • 167Posts
    • 14Thanks
    daxu
    how much a guarantor needs to earn?
    • #1
    • 4th Dec 17, 4:07 PM
    how much a guarantor needs to earn? 4th Dec 17 at 4:07 PM
    Hi,
    I have a one bed flat for rent, there is a lady who has a 2 year old baby really keen in getting it.

    However, she is working part time so I don't think her income will be enough to rent my one bed flat.

    She said that she can find a guarantor, but how much a guarantor will need to earn make this workable?

    See the flat is 525pcm. is 525*3*12 =18900£ a good enough income?

    I normally go through an estate agent, but this time I am trying to do it myself.

    Many Thanks
Page 1
    • Slithery
    • By Slithery 4th Dec 17, 4:15 PM
    • 350 Posts
    • 484 Thanks
    Slithery
    • #2
    • 4th Dec 17, 4:15 PM
    • #2
    • 4th Dec 17, 4:15 PM
    If the prospective tenants income isn't enough to cover the rent then don't let the property to her, regardless of any guarantor.
    • aneary
    • By aneary 4th Dec 17, 4:24 PM
    • 799 Posts
    • 699 Thanks
    aneary
    • #3
    • 4th Dec 17, 4:24 PM
    • #3
    • 4th Dec 17, 4:24 PM
    does the tenant also receive HB?
    • daxu
    • By daxu 4th Dec 17, 4:25 PM
    • 167 Posts
    • 14 Thanks
    daxu
    • #4
    • 4th Dec 17, 4:25 PM
    • #4
    • 4th Dec 17, 4:25 PM
    thanks,
    I was trying to help her, but do have my doubts on her affordability.

    Say her part time income is 900£ a month and her tax credit is like 650 plus child benefit.

    As a single mom, think she will get lots of discount on council tax (not sure she even needs to pay one actually).

    so in theory, that is like 1550+ after tax, which should be enough to cover the 525£ rent.
    Is my calculation right?

    Thanks
    • theartfullodger
    • By theartfullodger 4th Dec 17, 4:31 PM
    • 9,101 Posts
    • 12,063 Thanks
    theartfullodger
    • #5
    • 4th Dec 17, 4:31 PM
    • #5
    • 4th Dec 17, 4:31 PM
    It's entirely up to landlord/agent to set such requirements as they see fit. I'd worry less about income, more about assets (eg house). As if you need to collect when tenant can't or won't pay, FK if guarantor still has a job. But if they have a house with significant equity a charge can be placed on it.
    • Money maker
    • By Money maker 4th Dec 17, 4:33 PM
    • 4,859 Posts
    • 11,094 Thanks
    Money maker
    • #6
    • 4th Dec 17, 4:33 PM
    • #6
    • 4th Dec 17, 4:33 PM
    Depends, does she smoke, gamble, drink excessively? Does she like to buy all the latest gadgets? Does she shop in expensive clothing shops, does she drink copious amounts of coffee at costa, does she have an expensive nursery/childminder/gym membership? You don't know any of these in the same way that you would have no clue how she spends her money. Yes, it would be enough for some but no where near enough for others. She is the one who needs to be thinking about the figures ( and worrying about them) not you. Step back and consider your reasons here.
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    • G_M
    • By G_M 4th Dec 17, 5:29 PM
    • 42,221 Posts
    • 49,016 Thanks
    G_M
    • #7
    • 4th Dec 17, 5:29 PM
    • #7
    • 4th Dec 17, 5:29 PM
    How much would the tenant need to earn in order to satisfy you without a guarantor?

    That is the amount the guarantor needs to earn.

    Don't forget guarantee agreements should be Executed as a Deed and properly witnessed, after the guarantor has been given a ccopy of the tenancy agreement so they know exactly what they are guaranteeing.
    • Cakeguts
    • By Cakeguts 4th Dec 17, 7:56 PM
    • 3,261 Posts
    • 4,528 Thanks
    Cakeguts
    • #8
    • 4th Dec 17, 7:56 PM
    • #8
    • 4th Dec 17, 7:56 PM
    If she doesn't have enough money to rent the flat she will always be in arrears. Where did she live before and why did she leave there? Someone with a 2 year old baby will not have been homeless. She could have been living with parents?

    She probably would not be accepted as a tenant through an estate agent because of her income? Do you want to rent your flat to tenants who might not pass the affordability check?
    • daxu
    • By daxu 5th Dec 17, 12:13 PM
    • 167 Posts
    • 14 Thanks
    daxu
    • #9
    • 5th Dec 17, 12:13 PM
    • #9
    • 5th Dec 17, 12:13 PM
    thanks everyone.

    I read through my insurance policy, it says:
    At least one of the tenants signing the tenancy agreement must be either employed, retired, in full time education or in receipt of a disability benefit.

    So at least from insurance point of view, tenants with part time job or benefit can be covered by landlord insurance. I never really studied the conditions before.
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