Renting a property - tenant finding hard to get guarantor

davey9998

renting out a property. the tenant seems nice but has a bad credit rating. said her dad was a home owner and would be guarantor. it has now transpired that her dad has a terrible credit rating. therefore she said her sister would be guarantor but her sister is not a home owner.

what would you suggest?

is it safe to use her dad as a guarantor as he is a home owner even though he has a bad credit rating or is it better just waiting for a better tenant.

thanks

MB69

Bad credit rating doesn't necessarily mean a bad tennant!

Try to find out from her the previous landlord/property and see if you can get a reference from her previous landlord!
Failing that, you can either get her to pay a higher bond, or look for someone else. but don't forget to put the money in a DPS otherwise you will have a great problem later on.

There are a lot of people looking for properties to rent at the moment as most can't get a mortgage, like me for one

Good luck

davey9998

yeah thanks. she has a mortgage but has split from her partner. she has missed credit cards and other things etc so does have a BAD credit score which leads me to believe if she has problems again in future then she will not pay her debts. Yeah the money will go in a DPS, or she will just pay the 6 months up front.

if she pays 6 months up front and no bond does it have to go in the dps?

MB69

I don't think so! depends on how the 6months is worded in the contract I think. If it is worded as 'Rent Payment or advanced rent' then I think it is ok to not go in the DPS. But do a research on it to see what does need to go to the DPS.

problem with the guarantor and ... is that it will take time to sort it out! and if yuo rely on the rent to pay for the mortgage and other things, then you could find yourself in trouble too.

Normally in contract and ... it is stated that you can only take legal actions if the rent is late by more than a month or ..., you have to write to them first, and then ask again and ...

Hope this helps.

davey9998

thanks very much. yeah the rent isn't "needed" but been too kind and taken people's word for it in the past that they will pay etc and it comes back to bite you time and time again so being strict this time. thanks again and good luck saving for your mortgage

G_M

What is the point of credit vetting? Presumably to try to ensure your tenant can and will pay rent and for any damage.
So what is the point of credit vetting the guarantor? Presumably the same!

If the credit check throws up doubts, you know what to do!

tbs624

davey9998 wrote: »

renting out a property. the tenant seems nice but has a bad credit rating. said her dad was a home owner and would be guarantor. it has now transpired that her dad has a terrible credit rating. therefore she said her sister would be guarantor but her sister is not a home owner.

The fact that her sister is not a home owner does not mean that you should discard the idea of her being the guarantor, if she personally has a good credit rating. If she has sufficient income/savings to cover her own outgoings plus any shortfall in rent that her sister accrues then that should be okay. The home owner bit is more about being able to track down a guarantor and/or place a charge on the property if both T and guarantor fail to cough but there are other alternatives.

Is this property owned outright, a BTL or CTL? Many Ts will want to have confirmation of this before being asked to pay 6 months rent in advance. If you were thinking of asking for a larger deposit bear in mind that anything over 2 months deposit may be held to be a "premium", subsequently allowing the T to assign the tenancy.

Geenie

Nariman wrote: »

I don't think so! depends on how the 6months is worded in the contract I think. If it is worded as 'Rent Payment or advanced rent' then I think it is ok to not go in the DPS. But do a research on it to see what does need to go to the DPS.

problem with the guarantor and ... is that it will take time to sort it out! and if yuo rely on the rent to pay for the mortgage and other things, then you could find yourself in trouble too.

Normally in contract and ... it is stated that you can only take legal actions if the rent is late by more than a month or ..., you have to write to them first, and then ask again and ...

Hope this helps.

I use the DPS for deposits which are solely for recuperating costs if damage is done to a property, not for rent. I would never put rent into the DPS. Just as I would never let to anyone no matter how much they paid in advance without a deposit. I have had people pay 6 months rent in advance, but they still had to pay the deposit.

The OP states that the potential tenant has a mortgage, missed credit cards and other things, so it sounds like she is already financially challenged and struggling.

What is the council tax, water rates, average heating costs per month OP, as paying the rent is only a small part of her financial commitment to the property?

Hammyman

davey9998 wrote: »

renting out a property. the tenant seems nice but has a bad credit rating. said her dad was a home owner and would be guarantor. it has now transpired that her dad has a terrible credit rating. therefore she said her sister would be guarantor but her sister is not a home owner.

what would you suggest?

Find another tenant, plenty out there. Sounds like a family of people incapable of controlling their spending. You'd have no joy getting money out of the father when, not if, the daughter welches.