What is a guarantor’s suitability and need?

What is a guarantor’s suitability and need?

9:23 AM, 16th August 2022, About 2 years ago 5

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Hello everyone, I am being told, I think, some unusual things about the need for guarantors by a large national agency.

First of all they said there was no need for a guarantor if the tenant met the 2.5 times criteria and refs and the credit history were ok.

The let currently being arranged means the tenant only just meets the criteria of 2.5 times, and in these crazy economic times, when interest rate and rent rises are common, this is enough to worry me.

If I raise the rent, and he hasn’t had a pay rise, then he no longer meets the criteria, but as this is a let only arrangement, any future rent rise and the tenant’s ability to afford it are not their concern in the slightest.

With so many people at risk of either losing a job, or being offered less, or their employers going broke, I am genuinely concerned.

So then I insisted on a guarantor, to be met with resistance and being told it was not necessary.

I stipulated that the guarantor be a home owner….only to be told that they couldn’t demand a guarantor was a home owner.

My reply was that if they weren’t, they wouldn’t be suitable as a guarantor.

Their response to getting proof of home ownership was that they would not be able to prove that the guarantor was a home owner.

I can’t believe that a large national chain is coming up with all this rubbish – other agents I’ve dealt with have ways of asking for this proof.

Is all this unusual?

What is other landlords experience?

It’s looking as though the relationship with the agent is breaking down.

Thank you.


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Seething Landlord

12:40 PM, 16th August 2022, About 2 years ago

It is not for the agents to decide whether it is necessary to have a guarantor, it is entirely a matter for you as the one who will bear the risk if the tenant defaults. A simple check at the land registry will determine who is the legal owner of a property and the usual referencing checks on the guarantor will also help to determine his suitability. It sounds as though the agents may be aware that the prospective tenant is not able to find a guarantor, in which case you will need to decide whether or not to accept him.

Helen @ Like-Clockwork

13:14 PM, 16th August 2022, About 2 years ago

Sadly, I CAN believe a large national chain is coming up with all this rubbish. I keep a list of letting agents who display significant lack of knowledge and expertise - on basic lettings management issues. In the last few weeks, this has included Right to Rent issues, issuing How to Rent Guide and other required docs, deposit protection issues, tenant referencing issues....all really key lettings management issues. I think in your case, Grahame, I'd be sourcing another letting agent for your tenant-find. I entirely agree with your requirement to find a tenant where affordability has been checked, and where a guarantor is suitable.

David Smith

14:54 PM, 16th August 2022, About 2 years ago

Reply to the comment left by Seething Landlord at 16/08/2022 - 12:40
I couldn’t agree more with this reply.


15:40 PM, 16th August 2022, About 2 years ago

Is this agent seeking a quick fee kill (you), close file and move on to the next mug?
You are in charge, your property and risk of not getting paid. Stick to your guns, Sir!


10:11 AM, 20th August 2022, About 2 years ago

Who will bear the initial costs of such an exercise?
I do not want the answer: higher rents.
Such a reply is never satisfactory.
You need satisfactory supply and effective demand to determine a rent.
The reader’s question is about effective demand.
I am sure the Letting Agent would do all his client, the Landlord, demands but at a fee.

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