Gransnet forums

Legal, pensions and money

Page 1 of 1
Flip | Customise

How to find a rent guarantor

(6 Posts)
Add comment | Report
rowyn Sun 18-Oct-20 12:07:44

Daughter is bipolar and has debts. She and partner have been renting from a friend but he now wants to sell. They have found somewhere to rent but the agent requires a guarantor as well as a large deposit ( which I have provided). Partner went bankrupt about a year ago so neither have good credit rating.
I have, with great difficulty, refused to be guarantor as I have a limited income, plus have given most of my savings to daughter over the years because of debt. I feel horrendous about it but cannot risk it, especially as I don't really know her partner. At the moment she has a well paid job, but has a history of only lasting about 6 months in a job, and her partner has some sort of job - has been furloughed but is supposed to be returning to work next month.

I've found information about companies that will be guarantor for about £250 per year. Don;t know if they would take her and partner on but also don;t know if this is a safe and sensible thing to do? any advice on anything they can do would be welcome.

Add comment | Report
EllanVannin Sun 18-Oct-20 12:24:03

The easiest thing would be to act as guarantor but you'd still remain liable for unpaid rent I think.
If you could be 100% sure that the rent would get paid then going guarantor is the best.
You'd have to have absolute surety on this from your daughter as it sounds as though they've been reckless, knowing that you're a safety net.
I haven't heard of the other method.

Add comment | Report
Toadinthehole Sun 18-Oct-20 12:27:16

Well done for refusing. It could be a potential nightmare, and leave you penniless. I would just keep looking for a landlord who doesn’t ask for it. I’ve not heard of this other thing either. No harm in finding out about it.

Add comment | Report
Illte Sun 18-Oct-20 13:15:23

I let a house that I inherited. My contract with the agent includes a rent guarantee and this costs 5% of the rent each month. I don't know of any that are as cheap as £250 a year and to be honest I'd be suspicious of them. I don't know how they'd charge so little.

I think I'm right in saying that the rent guarantee is for landlords not tenants. After all the tenant could take the guarantee and then just stop paying rent!

I know that my guarantors would not allow me to rent to tenants with a history like your daughter. It is too risky for them

It is also very risky for you, so please stick to your guns and refuse to stand as guarantor. You could lose a lot of money.

Add comment | Report
Doodledog Sun 18-Oct-20 13:43:38

The arrangement you mention (charging £250 to guarantee rent) sounds dodgy to me. How to they recoup unpaid money, and what methods do they use?

Sorry, I can’t offer a better solution, but personally, I would avoid that one, as it conjures up visions of Phil Mitchell coming round with a baseball bat.

Add comment | Report
tattynan Fri 23-Oct-20 19:07:20

I was a guarantor some years back and its not just a case of giving a name to the landlord. The letting agents wanted proof you could afford to be a guarantor. Eg payslips, details of your savings ,Proof of employment and credit reference checks are made. Not as straight forward as your daughter might think. Are there any housing associations near you they could approach for advice?

Page 1 of 1
Flip | Customise