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View Full Version : Pursuing a guarantor (not!)



Ericthelobster
28-10-2005, 14:18 PM
As per my earlier post today, I'm considering taking on a tenant who would be providing a guarantor, at my instigation, due to a bad credit history.

The prospect has come up with one; a neighbour they've known for many years. I've had this person fill in all the forms and met her, and on paper she'd be fine as a guarantor, but the thing is - she's a Little Old Lady...! Terribly nice, very kind - as demonstrated by the fact that she's offered to help out like this. Retired, of limited means, but has enough savings to prove that she could cover the tenancy if required. My problem is that to me as as a businessman that should all be fine and dandy; but as a human being I know perfectly well that there's no way on this earth I could ever go after this lady for money if my tenant ever did the nasty. I genuinely don't think the tenant is cynical enough to guess that. But I can't very well reject the guarantor as being 'unsuitable', because she plainly isn't - I should add that she's got all her marbles and understands exactly what she'd be letting herself in for. I feel that it's a big vote of confidence by the guarantor for the prospective tenant, if she's prepared to take that big a risk for her neighbour.

Am I just too soft, and in the wrong game?! Would be interested in other's thoughts on this.

I know the easy thing would be simply to reject the application; however I do feel this is basically a good prospective tenant; interviewed well, has a stable, good job etc.

Jennifer_M
28-10-2005, 14:41 PM
Isn't it better to have a guarantor who's actually in employment ? I mean this woman has some savings now but saving can easily be spent and then she'd have nothing.

MrShed
28-10-2005, 17:46 PM
- Jennifer has a definite point, and this could be a good reason for rejecting the guarantor(sic), and asking for another.

- From what I have read on both threads, I feel you are probably right about this tenant. The tenants you need worry about are the ones who withhold their CCJ's etc. Off topic somewhat but mentioned in your other thread, why not just ask the tenant about who the plaintiff was in the CCJ? They seem to be open and honest, and I feel it is a perfectly valid question.

- Another possible backup plan would be to take quite a large deposit(although obviously less than 2 months rent!).

Again off topic, but does anyone know, if the LL successfully recovered the money from a guarantor, could the guarantor then sue the (presumably by then) ex tenant successfully?

Nora Kay
29-10-2005, 16:38 PM
ErictheLobster
You are obviously too soft for this game, but stay with it and do a bit of possible damage limitation. If your gut feeling is that this tenant is a decent person, then hope that she is too soft as well to let the old lady down.
But keep a close eye on the rent payments, and at the first sign of trouble, get it sorted out - don't put it off until the arrears have built up.
Or could you ask the tenant for a second guarantor - a parent perhaps.
When I have had a young couple as tenants, I have obtained guarantor agreements from both families. I find that parents are much more wary of doing this than an aquaintance, who could fail to take the responsibility seriously, and be more likely to disappear at the critical moment!
Good luck!

johnjw
30-10-2005, 11:43 AM
I think CCJ's (plural) sends a very clear message. You need to have full details before you consider these tenants. The fact that they were "upfront" with regard to the CCJ's, means little because normal credit checks would have revealed them anyway. They seem to be very persuasive people (or you would have rejected them) and they may have used these skills on the lady who has (perhaps foolishly) agreed to act as Guarantor. It should be useful to talk to the lady - presumably she knows the prospective tenants quite well? I'd also follow Mr Sheds advice and ask the tenants about the CCJ's and the identity of the Plaintiff(s).

Ericthelobster
31-10-2005, 11:28 AM
I asked the applicant last week to provide me with proof that the CCJs had been satisifed, as she'd indicated (only happened two weeks ago); and on a lesser scale of importance, also to chase up the character reference which had been promised (she'd wanted to move in on 1 Nov). This morning I left her a message saying there was still no sign of either and to contact me; in reply I receive a texted diatribe about how much I'd mucked her about and she was withdrawing her application... :mad:

So, that's probably approx 2 weeks lost rent, a new newspaper advert, and a load more hassle. Ah well, I suppose I should consider it a potentially lucky escape for me!

dazalock
31-10-2005, 20:26 PM
Funny how these things show true sides of people isnt it.

I advertised my property a couple of weeks ago, had two viewings the next day. 1st guy was very nice but said up front he had a credit history. 2nd lady who was very very friendly and humble, she had no credit and was very keen to move in. After some thought I offered the second lady the place. I gave her the tenancy application form from the tenantverify site. 2 days later I rang her, only to be told she certainly would not be filling out THAT form with such personal details such as her income and if she had a criminal record. So, decision made for me, went with the honest guy who readily filled out said form and as it turns out, his credit checks flew through!!

:cool:

Jennifer_M
31-10-2005, 21:03 PM
Funny how these things show true sides of people isnt it.

I advertised my property a couple of weeks ago, had two viewings the next day. 1st guy was very nice but said up front he had a credit history. 2nd lady who was very very friendly and humble, she had no credit and was very keen to move in. After some thought I offered the second lady the place. I gave her the tenancy application form from the tenantverify site. 2 days later I rang her, only to be told she certainly would not be filling out THAT form with such personal details such as her income and if she had a criminal record. So, decision made for me, went with the honest guy who readily filled out said form and as it turns out, his credit checks flew through!!

:cool:

Was that lady the same who posted a few weeks ago complaining about being asked about her income and what about data protection ?? ;)

evictor
01-11-2005, 18:15 PM
go for a charging order on her property if she wont pay up she signed the G/tour forms