Should I reference tenants' guarantors?

Skag

I am about to rent my property to 4 students.
Some referencing companies do the so called instant checks individually to each tenant. Some others have a combines guarantor + tenant reference (background check), for a higher price.

Which one should I go for?

Marktheshark

More interested where you found 4 dummies to sign a guarantor deed for students.
The term one born every minute ....

Pixie5740

What's the point in having guarantors if you do t know that they could cover the rent if the tenants stop paying?

Browntoa

dummies are normally called "mum" or "dad"

fishpond

Skag wrote: »

I am about to rent my property to 4 students.
Some referencing companies do the so called instant checks individually to each tenant. Some others have a combines guarantor + tenant reference (background check), for a higher price.

Which one should I go for?

Are you serious?
See post 3.

Skag

Browntoa wrote: »

dummies are normally called "mum" or "dad"

Exactly. I've been there.

Skag

Pixie5740 wrote: »

What's the point in having guarantors if you do t know that they could cover the rent if the tenants stop paying?

You're right. I guess that's a tenant + guarantor.
However I thought I'd sign a separate guarantor agreement that states that the guarantor is liable for paying in case the tenant cannot. On the other hand that still doesn't guarantee that the guarantor will pay, though having a good reference doesn't either.

HappyMJ

Skag wrote: »

I am about to rent my property to 4 students.
Some referencing companies do the so called instant checks individually to each tenant. Some others have a combines guarantor + tenant reference (background check), for a higher price.

Which one should I go for?

You can also do tenant referencing yourself. You don't have to pay anyone.

Instant check is just a check of the insolvency registers.

Background check will check some other things too...but...if they pass by having enough money in the bank then there's no need to go any deeper into their financial affairs and they'll get a pass without ever having spoken to anyone.

Skag

I've also found this

Student Guarantor referencing If you let your property to students, you may choose not to reference them as they are highly unlikely to pass a reference. However, you can help safeguard your rental income by referencing a student’s Guarantor (usually a parent or legal guardian) who’ll be responsible for paying the rent in the event that the student is unable to pay. By referencing a Guarantor, you can check that their income is sufficient to cover the monthly rental amount minimising the risk of the Guarantor not being able to pay the rental income. - See more at: https://www.endsleigh.co.uk/talk-lettings/referencing/2014-jun/a-guide-to-tenant-referencing/#sthash.C7hEqAdI.dpuf

Do you agree?

Skag

HappyMJ wrote: »

You can also do tenant referencing yourself. You don't have to pay anyone.

Instant check is just a check of the insolvency registers.

Background check will check some other things too...but...if they pass by having enough money in the bank then there's no need to go any deeper into their financial affairs and they'll get a pass without ever having spoken to anyone.

So you are saying that I can as for a proof of money in a bank account and that would suffice?

HappyMJ

Skag wrote: »

So you are saying that I can as for a proof of money in a bank account and that would suffice?

You will be asking for the whole 6 months rent upfront in any case so it doesn't really matter how much they have. I'd ask for proof of funds. If they can't show a sufficient level then ask for payslips, rental or mortgage agreements and figure out if they can afford their own rent/mortgage as well as this.