9:41 AM, 2nd May 2023, About 10 months ago 11
Hello, If anyone has children in university, they’ll be familiar with the annual signing of the guarantor agreement, promising to pay the rent should your young student fail to do so themselves – and, if you don’t read the agreement carefully, their flatmates rent too.
But, what are the pros and cons of asking for a guarantor for more ‘grown up’ tenants – and possibly even insisting the guarantor be a home owner or, at least, have a mortgage?
The benefits are clear – if the tenant fails to pay their rent, you have someone else who can at least apply pressure on your tenant to pay and, if it comes to the worst, someone else to collect the rent from.
But are there any disadvantages to this?
Clearly, some tenants won’t be able to do this, so you limit the ‘market’ for your property. But are there any other downsides?
Please share your experiences and opinions on this!
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