UK Landlord Forum / Life

I have applicants for a joint tenancy for a flat that I own

Applicant 1 has a track record of being a good tenant and earns a salary which would easily cover the rent. Additionally her parents are prepared to act as Guarantor both for her and Applicant 2.

Applicant 2 is apparently a long-term family friend of Applicant 1. She is not currently working and is in receipt of disability benefits of £650 per month.

Applicant 1 is prepared to take full responsibility for the rent and have her friend contribute around £75 per month to household bills.

I would not normally accept Applicant 2 if she were to be a sole tenant and so my question is, what are the advantage and disadvantages of accepting her as a joint tenant given the safeguards put in place by Tenant 1 and the Guarantors.

Is this a risky proposition or would I be better having Applicant 2 as an "Authorised Occupier" only?

Thanks in anticipation of your comments

I wouldn't do it. I'd make applicant 1 the sole tenant. It'll make things simpler for you

My gut instinct is not to do it Spiny Norman as you say BUT - if the second applicant is living there and not on the tenancy agreement then where do I stand if anything happend to Applicant 1 eg knocked down and killed. At least the mum of Applicant 1 can still act as guarantor if Applicant 2 is on the tenancy agreement. What do you think?

I'd put them both on the agreement, then they are joint and severally liable - how they divvy-up the rental payment to you is their concern. Plus, having someone responsible who is in receipt of benefits is not a bad thing - as that is actually a lot more reliable than, say, earnings. I might still insist on the Guarantor... but I've actually never gone that route properly myself - it can get complicated and even more so if you need to call on it.

Now more than at any other time,someone on permanent benefits could be less risky than many tenants with "good" jobs.That would not worry me.What would give me pause to wonder is have they both got good credit ratings, and genuine references from previous landlords.The fact that the parents are prepared to be guarantors for both could suggest desperation,as in they will sign any damn thing to get shot of them.That was my experience that led to me always refusing guarantors.

Thank you Hippogriff and Heavy Karma for you advice and observations

Having considered all the circumstances I have decided to make Applicant 1 the Tenant and Applicant 2 an "authorised occupier" who can stay at the property whilstever Applicant i is the tenant and subject to Appllicant 1's continuing consent.

Does anybody know if there is a standrd "Authorised Occuopier" letter or contract to be had please?

Should we infer from your username that this property is in Scotland and therefore subject to Scottish law?

Simon Pambin - Astute question but no - subject to English Law