Validity problem of parental guarantees when the parents are not resident in this country?

by Readers Question

18:52 PM, 17th November 2016
About 2 years ago

Validity problem of parental guarantees when the parents are not resident in this country?

Make Text Bigger
Validity problem of parental guarantees when the parents are not resident in this country?

Just wondering what other self managing Landlords do to guarantee rents from students whose parents live abroad. Correct me if I’m wrong but guarantees from parents abroad are not worth the paper they are written on as no action can be bought against them.guarantee

I know guarantors can be other family members or even friends as long as they are a house owner, but this can not always be achieved and is another ball game. After all parents are parents and they usually have their off springs interest at heart.

Agents tell me they charge upfront. But when upfront I would like to know. I sign up my student tenants in November for the next academic year. I would not want to take so much at such an early stage, even if they wanted to give it, nor would I want to trust them paying later because at a later stage if they failed to pay and you had to re-let you may not find such strong groups. It’s an ever recurring problem.

Oxford University where I’m based simply won’t help. At least not until you have arrears of rent and even now with bums on seat polices, action they could have taken in the past, like not allowing students to sit exams if in debt, is very unlikely to happen. Like to take the extra fees from foreign students, but can’t help in any way the Landlords on which they rely. I have taken a few students whose parents live abroad in the past and done what can be best described as friendly checks and been ok. But now I have a group I would love to take where five out of eight have parents living abroad. Any ideas or information anybody?

Yvonne



Comments

Natalie Collins

9:50 AM, 18th November 2016
About 2 years ago

This is also of interest to me - I work with a great number of property agents in my profession (a free service securing their international clients preferential rates of currency exchange and giving landlords and agents back a thank-you introduction fee) and often times, they rent out to international students - especially in and around Manchester and London.

Indeed, many explain that because they cannot secure a guarantor they require 6m-12m upfront in advance. But good question - how far in advance can you take it? I'm looking forward to hearing back from others on here.

I'd probably say - if you don't ask you don't get and if they agree to pay it so far in advance and the contracts are signed then there isn't really any wrong-doing.

Dr Rosalind Beck

9:57 AM, 18th November 2016
About 2 years ago

Hi Yvonne.
Personally, I would take the risk as I find foreign students tend to be very good and reliable with payments. But, as you say, it is a risk.

Mark Chamberlain

10:41 AM, 18th November 2016
About 2 years ago

We have similar problems as a majority of our tenants are overseas students and cannot obtain Rent Guarantee protection as the tenant/Guarantor do not fit in with the standard referencing criteria so we recently looked at Housing Hand who are a UK based company that (for a fee, of course) will effectively become a UK Guarantor for your Landlord at no charge to the LL as the cost is met by the tenant. It seemed quite expensive to us so we haven't use the service yet but it's maybe worth a look http://www.housinghand.co.uk. Good luck, Mark

Scottish Landlord

10:58 AM, 18th November 2016
About 2 years ago

Hi, I believe that some universities will offer to act as UK guarantors for a limited number of students.

Failing this there are companies that will offer a UK guarantor service, such as Housing Hand (who charge the students a fee).

This term is my first dealing with Housing Hand so although they do appear to offer a solution (they completed my guarantor form) I cannot comment on how easy it is to claim from them. Hopefully I never will.

Romain Garcin

11:25 AM, 18th November 2016
About 2 years ago

Why are you unwilling to take payment upfront?

If your prospective tenants have no income and no guarantor in this country that's about your only other option.

Yvonne Francis

13:34 PM, 2nd December 2016
About 2 years ago

Romain I'm unwilling to take payment upfront because I wish to find a better solution and anyway acceptance of what would be a third of my income would upset my tax position. I'm really looking for other Landlords experiences as I believe Universities should step up to the plate as they say. They are only too willing to accept these students and their higher fees, give them accommodation in the first year and expect them to go into private accommodation in the second year, without appreciating that when they offer accommodation, they hold their guarantee by the control of their students degree, expecting Landlords to take the risk or their students to pay up enormous sums eight months upfront. The students in question wrote to Oxford University and to their college Wadham and sent me the replies. Wadham College even mentioned it being unfair! not thinking they how they hold the ace card expecting presumably Landlords to take the risk.

The group offered to pay 3-6 months upfront (which is not exactly 12) and I also suggested Housing Hand which they thought too expensive. Despite ringing Housing Hand I for one cannot work out how a third party such as my students can take on Insurance for what is my liability? Has anyone experienced this Insurance?

Luckily for me my houses are well sort after so I took another group without these problems. Never-the- less my heart goes out to the looser in this case and still believe that a solution should be found. How much of a problem and how many more students faced with this problem will it take for Oxford University and others around the country, to at the very least take note of the issue and go some way to solve it, rather than this brick wall approach that Oxford Uni. letters revealed. Thank you all for all your comments.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

BTL property pick

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More