Tenant has disappeared owing thousands

Gorgeous_George

Absinthe_Fairy wrote: »

...If I was made redundant and couldn't pay my rent for genuine reasons, then why on earth should someone else be held responsible for it?...

...something unexpected might always happen and no one wants to take on someone else's debt...

Does someone else include the Landlord?

Many factors influence the rent and size of a deposit. Risk is one of them. In return for a guarantor, a LL may offer a lower rent or lower deposit.

GG

Absinthe_Fairy

It's not something to be taken as a personal insult, no more than some loan companies will only lend to homeowners and a car sales company only gives credit to those on a certain salary. It's just a condition or criteria. I also think its telling when a tenant has home-owning and employed friends and relatives who will not expose themselves to any form of risk by acting as guarantor. If they are not prepared to take the risk, why should the landlord?

I honestly think it's a completely unfair condition. A loan or a car is an option - but everyone needs somewhere to live! You can work hard to save to buy your own house or earn a certain salary - but you can't magic willing guarantors out of thin air.

I also think its telling when a tenant has home-owning and employed friends and relatives who will not expose themselves to any form of risk by acting as guarantor. If they are not prepared to take the risk, why should the landlord?

Because, as you say, the landlord's a business, and businesses are always exposed to some form of risk. There is ALWAYS a risk that an excellent tenant might become ill/get made redundant. Family and friends are not businesses - why should they sign up to these risks?

I personally would never act as anyone's guarantor (if I was in a position to do so), except for my children, if I had any. Even if I knew that they were 100% reliable. I have nothing to do, financially, with any family or friends. Why should I have to act as a guarantor for them or vice versa?

A landlord has other ways to check tenants - credit checks, references from previous landlords, references from employers. Why aren't these sufficient?

If a tenant has a bad credit history then I can understand them being asked for a guarantor. But if a tenant has shown themselves to be responsible than it IS an insult.

When I rent again I'm going to avoid properties that ask for guarantors. The landlords will be losing out on an excellent tenant, but that's their loss.

Absinthe_Fairy

Gorgeous_George wrote: »

Does someone else include the Landlord?

Many factors influence the rent and size of a deposit. Risk is one of them. In return for a guarantor, a LL may offer a lower rent or lower deposit.

GG

The contract is between the tenant and the landlord. If the tenant owes money the landlord should pursue them. I don't see why anyone else should be involved - the tenancy's nothing to do with them after all.

However you make a good point about the rent and size of the deposit. It's something I'd never thought of TBH.

Jowo_2

Absinthe_Fairy wrote: »

I honestly think it's a completely unfair condition.
...

A landlord has other ways to check tenants - credit checks, references from previous landlords, references from employers. Why aren't these sufficient?.

With a guarantor, a landlord has ultimate protection and this is highly attractive considering the many months of arrears and thousands of pounds worth of damage that a rogue tenant can inflict by the time they are legally evicted through the court process. For example, a tenant can only be evicted on a mandatory basis within a fixed term contract when they are 2 months in arrears, a court date could be set for some months ahead, then if they don't move out when a possession notice is gained, it can be another month or two to get an appointment with a bailiff to enforce the court order.

Tenants who feel insulted by being asked for a guarantor are choosing to feel insulted when no slight is intended.

In the main, I believe that guarantors are usually a prerequisite of riskier groups of tenants OR a blanket condition when a landlord has been stung by a tenant and vows never to have that degree of exposure again.

Tassotti

Not interested in the debate about guarantors....

To the OP, you said you did all the checks, etc, and this isn't the first time it has happened to you..

Consider getting rent guarantee insurance....cheap and can save you a lot of dollar.

clutton_2

my take on guarantors is this -

if i need a guarantor i will say to a family member - if you - who has known X for 30 years - are not willing to guarantee that she will pay me the rent - on what grounds do you expect me, a complete stranger to your family, to trust her to do so ?

i increasingly use guarantors for LHA tenants - as there is evidence from up and down the country that LHA tenants in significant numbers are absconding with rent money

this is getting so bad that some local authoriites are now testing out the law in terms of if a tenant absconds with LHA and then reapplies at another address, they are seeing if they can legally with-hold LHA a second time,

This is theft - and landlords have to try to protect themselves. Like many other areas of life, the viciousness of the minority make it difficult for the vast majority of decent honest and trust worthy tenants - i apologise to them - but i hope they understand

toby3000

I have to agree it's insulting to be asked to give a guarantor if you're an adult in employment. Your parents have no responsibility over you. I simply wouldn't rent from a landlord that asked for one- there's more than enough rental properties about.

To say that it's being over sensitive, thnk about it from this point of view. We all know that most landlords are rubbish about carrying out repairs. I imagine most would refuse to provide access to a building firm which they held an account with, or a selection of references from happy tenants. At the end of the day, it's a relationship based on trust, and if you have a business that makes you a lot of money for doing very little then you have to take some risk.

tek-monkey

My sister has recently split with her partner, is now on benefits and needed to move ASAP as the current place was too expensive - was £150/month more than she can get on benefits. Council told her to pretty much **** off in regard to a council house unless she wants to uproot her 3 kids to a new town/school. So she needed to rent privately, and find someone who accepts DSS. NOBODY would do so without a guarantor, even though the rent is within the amount allowed by her housing benefit.

Despite knowing my sister is **** with money, and against all better judgement, I am that guarantor. Who would honestly not help a family member in trouble? They insisted money came from me, so I set up a seperate bank account with no cards and the rent comes from that. My sister puts the money in each month, the money gets paid.

If the money isn't there one month, I close the account and call the estate agent telling them to evict her - simple. They can't take my money as there is none in the account and no overdraft facility, and my sister has been warned what will happen. There is no way I could see her and her kids uprooted to temporary housing in Stoke til somewhere can be found though, I don't understand anybody that wouldn't help out in a similar situation. Yes I put myself financially at risk, but its in a good cause.

Of course, if she ****** me about I'd never help her again. Which is why if they can't get ANYONE to help them I'd be very sceptical about letting.

tbs624

tek-monkey wrote: »

......If the money isn't there one month, I close the account and call the estate agent telling them to evict her - simple. They can't take my money as there is none in the account and no overdraft facility, and my sister has been warned what will happen. ..

Good for you for standing by your sister, however, you'll find it really isn't that simple if you have signed a standard guarantor agreement.They can, & will, pursue you to court for any unpaid debts relating to your sister's tenancy if she defaults.

tek-monkey

tbs624 wrote: »

Good for you for standing by your sister, however, you'll find it really isn't that simple if you have signed a standard guarantor agreement.They can, & will, pursue you to court for any unpaid debts relating to your sister's tenancy if she defaults.

I am aware of this, but short term they can't do anything. Long term I'll get the money together, it'll get paid but she'll be out. Not like they'd have me in court within a few months, and I can cover her rent plus all my own expenses within 2.

If someone cannot find a guaranto, if their own family are not willing to vouch for them, I'd be wary.