UK Landlord Forum / Life

Hi and hello from this forum newbie, I am a long term landlord with one house on an AST as well as a block of flats on a mix of holiday let's and AST's. My question is..... I have a new tenant couple interested in my house, mature, non smokers and perfect in every way with income etc. But their credit rating is terrible. The man has a CCJ and about £190,000 yes £190,000 on default credit cards. All on a debt management scheme. Guarantor is parents in their late 70's/early 80's with a pension income of over £6,000 a month, A million pound house with no debt and over £100,000 in the bank.  What are your thoughts?

I think they'll mess the rent up and you'll get paid from the guarantor so you should be covered yourself.

The only thing I don't like about Guarantors is that they sometimes aren't aware that their obligation can have infinite duration (some will think it's temporary even if it is not) and, of course, you are depending on two parties instead of one party... and those parties can fall out and it be made all that more difficult... even if the legal obligation still firmly stands.

Do it.

Get a big deposit. I would ask for 6 months, see how I got on. At least that way if the default you have a bit more chance of covering the rent while you evict. If parents have £100k, then in effect you're safeguarding the guarantee with cash!

Sounds OK to me. I'd imagine mummy and daddy have had to dip into their pocket before for them. You'd hope the tenants wouldn't want to trouble them anymore and will keep uptodate.

Obviously make sure the guarantor agreement is water tight.

We enforce a lot of judgments for unpaid rent against guarantors lately. There seems to have been a significant increase in the last 6 months. 

Sound advice from you all. Many thanks. Must think of another post so I am not a one post wonder!!!!!!

Quote from: Mr Happy on January 14, 2015, 06:10:08 PM
Sound advice from you all. Many thanks. Must think of another post so I am not a one post wonder!!!!!!

You made it champ!