Helping a tenant find alternative accommodation with insured guarantor?

Helping a tenant find alternative accommodation with insured guarantor?

9:37 AM, 8th December 2021, About 4 years ago 6

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I have a tenant with a cash deposit and Rent In Advance (RIA) ready to go. He gets paid £700 direct by the DWP and tops up the rest (total rent is £875).

He can clearly show that DWP pay the £700 direct and has done since he moved in back in 2012 – HB before then. He is looking to downsize to a smaller property at £750-800 which he can plainly afford (bank statements show this). He is not in rent arrears. Three months clear banks statements.

He does not have a home-owning guarantor which a lot of agencies say their LL’s require, so this is an issue. I have asked him to apply to rentguarantor.com (they take benefit applicants) which is where he pays a fee at the start of the contract, to show to a potential LL that they are covered completely if he defaults on the rent by the company. Some agencies are still not accepting this method of rent guarantor.

Anyone else been in the same position? Any advice?

Why isn’t the rent guarantor acceptable, as he will have been vetted properly to receive an offer of one that he has to pay?

Surely there are LL’s out there that would accept a tenant if they had this assurance?

DSR


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david porter

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Member Since January 2016 - Comments: 296 - Articles: 1

10:46 AM, 8th December 2021, About 4 years ago

can you not simply rent the property to somebody who is employed? With a good credit history?

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JB

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Member Since May 2017 - Comments: 739

10:52 AM, 8th December 2021, About 4 years ago

Reply to the comment left by david porter at 08/12/2021 – 10:46
I think DSR has a tenant who is trying to leave his property to downsize and can’t find another landlord to accept him?

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Monty Bodkin

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Member Since June 2014 - Comments: 1546

11:32 AM, 8th December 2021, About 4 years ago

“Why isn’t the rent guarantor acceptable, as he will have been vetted properly to receive an offer of one that he has to pay?”

Because they are not a home owning guarantor with a personal stake in it.

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Reluctant Landlord

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Member Since September 2018 - Comments: 3392 - Articles: 5

11:36 AM, 8th December 2021, About 4 years ago

Reply to the comment left by david porter at 08/12/2021 – 10:46
will do once he has vacated!

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Reluctant Landlord

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Member Since September 2018 - Comments: 3392 - Articles: 5

11:41 AM, 8th December 2021, About 4 years ago

Reply to the comment left by Monty Bodkin at 08/12/2021 – 11:32
I get that but surely if the tenant is essentially taking and paying out ‘insurance’ themselves to give the LL the benefit and confidence to ensure the rent will be paid, that’s the same thing?

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Monty Bodkin

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Member Since June 2014 - Comments: 1546

11:52 AM, 8th December 2021, About 4 years ago

Reply to the comment left by DSR at 08/12/2021 – 11:41
It wouldn’t be for me.

How long has the company been running? What is their payout rate? Is there a limit on payout? Do they credit check tenants? What happens if the company goes bust? What are the companies accounts like? etc, etc

Why would I bother when I have tenants queuing up who can provide an established home owning guarantor?

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