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Time-lapsing guarantor?

2»

Comments

  • mchale
    mchale Posts: 1,886 Forumite
    roger196 wrote: »

    What are the reasons for a LL to need a guarantee lasting, say, ten years for a six month AST


    A tenant with guarantor in place is much less likely to stop paying the rent after 6 month's & also much less likely to trash a property when they move on.
    ANURADHA KOIRALA ??? go on throw it in google.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    roger196 wrote: »
    A LL is meant to be in business carrying the risks associated with that business. If he wants guaranteed returns he should, in my opinion, invest in gilts or national savings.
    Every business takes decisions to minimise their risks.

    Shops put locks on their doors, which cost money (but protects them). Some shops take the decision to spend more and put up steel shutters.

    Banks (yes, I know - not flavour of the month) decide who to give loans to, and who not. Whether to individuals or businesses. Based on perceived risk.

    LLs are no different. They take business decisions about who to rent to. And on what terms. And whether with/without a guarantor.
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