Should I accept a tenant on low income?

Newheight13

I live in Wales and have a 2 bedroom flat to rent. 

Someone has contacted me to say they would like to move in straight away but I’ve declined them as they can only afford the rent and bills based on their salary, and they said they will be reducing hours to become a student which they state they having savings to cover this. I have declined but is that the right thing to do? I feel
its too risky for them as they don’t know what they are getting into and also big risk to me?

Should I ask for guarantor or just decline and leave it as that as they have been in touch again stating how upset they are as the property is perfect for them?

Thanks!

GrumpyDil

It's good that they have been open about their plans but I'd be wary and definately want a guarantor as a minimum.

Brie

Newheight13 said:

I live in Wales and have a 2 bedroom flat to rent. 

Someone has contacted me to say they would like to move in straight away but I’ve declined them as they can only afford the rent and bills based on their salary, and they said they will be reducing hours to become a student which they state they having savings to cover this. I have declined but is that the right thing to do? I feel
its too risky for them as they don’t know what they are getting into and also big risk to me?

Should I ask for guarantor or just decline and leave it as that as they have been in touch again stating how upset they are as the property is perfect for them?

Thanks!

Agree that you are right to be wary.  And I suspect if the property is that perfect you'll soon have someone else wanting it.  

Zoe02

I would not.

A tenant offering guarantor is a red flag unless they pass referencing and affordability and the guarantor isn’t really required.

I have had a tenant struggle with affordability. She was introduced through the council.
Now only accept those who pass affordability of gross income of 24 to 30x monthly rent.

Having a guarantor who is asset owning helps with low income but only select someone who can afford rent otherwise better to rent somewhere cheaper. 

km1500

no don't accept them

njkmr

Steer clear.
Rent will be the first thing they can't pay when money becomes tight.

Mr.Generous

njkmr said:

Steer clear.
Rent will be the first thing they can't pay when money becomes tight.

Not can't - won't.

housebuyer143

Don't - get your tenant right and your problems will be minimal. Go for someone who passes the references with flying colours, only if you are struggling to let it would I consider lowering the bar. 

You can't be swayed by sob stories or pleas. Meet your tenants, get a feel for them and providing they pass the references go for the ones you feel best about (assuming you are a good judge of character).

ThisIsWeird

How secure would it be having a guarantor? 

silvercar

ThisIsWeird said:

How secure would it be having a guarantor? 

You check the guarantor as seriously as you credit check the tenant.

Though I did once have a guarantor (excellent credit check, working full time, property owning) guaranteeing their daughter’s rent. Within two months of daughter starting the tenancy the parent had sold up and emigrated. Not much chance of chasing a debt the other side of the world!

Murphybear

silvercar said:

ThisIsWeird said:

How secure would it be having a guarantor? 

You check the guarantor as seriously as you credit check the tenant.

Though I did once have a guarantor (excellent credit check, working full time, property owning) guaranteeing their daughter’s rent. Within two months of daughter starting the tenancy the parent had sold up and emigrated. Not much chance of chasing a debt the other side of the world!

When I was training for my ARLA Advanced exams we were told that guarantees are not worth the paper they are written on.  Fortunately we never had to approach a guarantor.  If the guarantors won’t/can’t pay then the LL will have to take them to court and we all know how long that can take.

no one has mentioned the “dreaded” term housing benefit (or whatever the equivalent is these days).  I found that some of our best tenants were those on housing benefit.  I understand the tenant can ask for it to be paid to the LL.