Guarantors for tenants

GreenSnake

Just after some opinions from landlords / tenants out there:

What's the current situation in the rental market regarding guarantors for tenants?
Is it common for most tenants, or limited mainly to those on low income, students etc?

What is the disadvantage of asking for a guarantor? Presumably more paperwork and less potential tenants?
How enforceable are guarantor contracts in reality?
What if a guarantor's status changes after the contract has been changed?

What's the preferred criteria for a guarantor, home owner, reliable employment, both?

Thanks.

Slithery

Whose perspective are you asking this from? Landlord or tenant?

GreenSnake

Slithery wrote: »

Whose perspective are you asking this from? Landlord or tenant?

Both really.

A friend's daughter is going to university soon and we were talking about how when we were in college, we couldn't remember parents being asked to be guarantors.
I have colleagues who are landlords (small time) and they seem to ask for guarantors, but only if the tenants are on benefits.

GreenSnake

I've seen a lot of advice along the lines of "never be a guarantor".
But just trying to get an idea of the current market situation.
Thanks.

Carrot007

GreenSnake wrote: »

I've seen a lot of advice along the lines of "never be a guarantor".
But just trying to get an idea of the current market situation.
Thanks.

Yes that.

Except for Uni where if you want your kids to live somewher that is not a slum as that is what is left these days for the rest.
Wasn't like that is my day either but the market is different now.

Lorian

As you friend's daughter is going to university soon I'd recommend to your friend she looks at going in to halls of residence for the first year. She will have to wait about 7 months though, and get an offer, of course.

GreenSnake

Lorian wrote: »

As you friend's daughter is going to university soon I'd recommend to your friend she looks at going in to halls of residence for the first year. She will have to wait about 7 months though, and get an offer, of course.

I expect she will. That's what I did.
But then in the second year "we" all left halls and looked for shared houses. I think that's where the guarantor issue seems to have arisen.

I haven't been asked yet, but just hoping to get a bit more understanding of the current topic in advance!

GreenSnake

Carrot007 wrote: »

Yes that.

Except for Uni where if you want your kids to live somewher that is not a slum as that is what is left these days for the rest.
Wasn't like that is my day either but the market is different now.

Yes, this university business seems to have become seen as he exception to the "rule".
I personally don't feel comfortable with it, not least because I would never have had a guarantor. It seems divisive. But as you say, the country is changing.

G_M

GreenSnake wrote: »

What's the current situation in the rental market regarding guarantors for tenants?
Increasingly common - not like when I went to uni back in 19.....

Is it common for most tenants, or limited mainly to those on low income, students etc?
Yes, low income, poor credit history, students, overseas applicants with no UK cedit history/references etc

What is the disadvantage of asking for a guarantor? Presumably more paperwork and less potential tenants?
Indeed.

How enforceable are guarantor contracts in reality?
Totally unenforceable.
Though a Deed of Guarantee, if properly executed, is legally enforceable.

What if a guarantor's status changes after the [STRIKE]contract[/STRIKE]Deed has been [STRIKE]changed[/STRIKE]Executed?
Then the landlord has reduced security, but the Deed is still just as enforceable. But that applies to a tenant who applies with a high income but lateer gets made redundant.

What's the preferred criteria for a guarantor, home owner, reliable employment, both?

Most LLs will apply the same criteria to a guarantor that they would apply to a tenant. eg income of x times the rent etc. Home-owner is a bonus and some LLs require this.

HampshireH

It's quite normal these days.... however. You don't want to become a guarantor for a joint tenancy. You would be liable for the entire rent if something went wrong.

You would want your daughter to have her own tenancy if you are going to act as guarentor. This in itself may be hard to find as many landlords want a group to sign 1 tenancy. It depends on the area and landlord etc.

I never had a guarantor - our loan covered accommodation. However I was also one of 7 on a joint tenancy. Was a nuisance chasing for rent / bills to be paid each month.

GreenSnake

HampshireH wrote: »

It's quite normal these days.... however. You don't want to become a guarantor for a joint tenancy. You would be liable for the entire rent if something went wrong.

You would want your daughter to have her own tenancy if you are going to act as guarentor. This in itself may be hard to find as many landlords want a group to sign 1 tenancy. It depends on the area and landlord etc.

I never had a guarantor - our loan covered accommodation. However I was also one of 7 on a joint tenancy. Was a nuisance chasing for rent / bills to be paid each month.

Yes, my memory is of shared tenancy at university.
I don't think I'd agree to any liability for other students. This is why I'm thinking ahead now, so as to set out my boundaries early on.
I was always brought up under the "once you leave school you're an adult" approach.
Going to try and continue that family attitude.