Tenant has disappeared owing thousands

Out,_Vile_Jelly

Student lets and benefit tenants are entirely separate issues IMO, as obviously income is an issue there.

My parents would act as guarantors without hesitation, but I wouldn't dream of ever asking because I'm a fully grown, financially independent, gainfully employed adult who hasn't received money from my dad since I graduated a decade ago. And what happens to people with less fortunate personal circumstances, who do not have immediate family still living, or wealthy friends?

How are we supposed to instil financial literacy into our nation if it becomes normal for adults in full time employment to still expect mummmy and daddy to pick up the tab for everything?

Jowo_2

Out,_Vile_Jelly wrote: »

How are we supposed to instil financial literacy into our nation if it becomes normal for adults in full time employment to still expect mummmy and daddy to pick up the tab for everything?

There's a horrible catch-22 here. The reason why the government replaced housing benefit with Local Housing Allowance, which is now paid directly to the tenants, is to instill this financial literacy in claimants, making them responsible for budgeting. But this direct payment to tenants and the perception of an even higher risk of arrears is the reason why landlords are more likely to seek a guarantor.

tek-monkey

Out,_Vile_Jelly wrote: »

How are we supposed to instil financial literacy into our nation if it becomes normal for adults in full time employment to still expect mummmy and daddy to pick up the tab for everything?

You aren't, you are merely saying if you **** up they'll bail you out. As a landlord surely you would never rent to someone on a low income without backup, its an insane idea. Not everyone needs a gaurantor, I never have even when earning less than £16k, its only those in a weak position that need one.

Would you rather people just didn't rent to those on a low income?

Out,_Vile_Jelly

tek-monkey wrote: »

Would you rather people just didn't rent to those on a low income?

I suppose it depends on how you define low income (I'm still talking about those with full time jobs, not benefit claimants). Presumably landlords make a decision as to whether they think the declared salary is sufficient for a tenant to pay rent and live on in each case.

Interesting to read the reactions here- I think we are talking about two very different rental markets. At 31, with a secure job, no credit score problems and several years of renting in one of the world's most expensive cities I would be genuinely gobsmacked to be asked for a guarantor and I think landlords need to exercise caution here and not automatically assume that it's because I'm "dodgy" and would not be able to provide one.

Jowo_2

Out,_Vile_Jelly wrote: »

I suppose it depends on how you define low income (I'm still talking about those with full time jobs, not benefit claimants). Presumably landlords make a decision as to whether they think the declared salary is sufficient for a tenant to pay rent and live on in each case.

Interesting to read the reactions here- I think we are talking about two very different rental markets. At 31, with a secure job, no credit score problems and several years of renting in one of the world's most expensive cities I would be genuinely gobsmacked to be asked for a guarantor and I think landlords need to exercise caution here and not automatically assume that it's because I'm "dodgy" and would not be able to provide one.

Not sure on the criteria whereby a landlord determines or not whether a guarantor is a prerequisite for a tenant before offering a tenancy, it must just vary according to different landlords preferences. It's certainly considered good practice for low income and risky tenants, including working tenants whose credit check report is averse.

It probably is the blanket practice of any landlord who has encountered an emmployed tenant who has passed all the tenant screening and then turned out to be a nightmare.

It's clear from the comments on this forum that some tenants think it is insulting to be asked to provide a guarantor whereas risk management as a practice is about minimising or preventing a potential risk from being realised, not saying that it is going to happen. It's a backup - the screening process is estimated to eliminate 90% of bad tenants and is not foolproof. Certainly, posts on landlord forums about tenants in arrears, damaging the property and subletting do include employed tenants who had previous good landlord references and credit scores.

Out,_Vile_Jelly

I've only been asked for it once- for my first non-student rental after graduating, with a complicated two year employment record involving various jobs abroad, so not unreasonable in that instance. Never been mentioned since, and if it did I would find another property, as would most in my position I think (I always go through an agency though, not sure if that makes a difference?). It is such a shame the small percentage of moron tenants make life increasingly problematic for the rest of us.