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  • Buy-to-Let

    No Guarantor - more rent & deposit

    Hi all. 

    Would you consider a tenant if they had no guarantor if they was willing to pay more than other prospective tenants and also a much larger deposit? 

    Thanks.
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    Well certainly, though it depends on the other contenders for the property. How good are the other tenants Guarantors, a Guarantor is only as good as the equity in assets they hold or stability of income.

    It may be wise to take that excess rent and see about obtaining rent guarantee insurance. Using it to increase the security of tenure rather than higher returns.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    Wouldn't that person fail to meet the minimum requirements to qualify under Rent Guarantee?

    My knowledge on this is very little to learn which types of tenants would be able to obtain this?
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Don't forget that the maximum deposit you can now take is 5 week's rent.

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    My thought exactly! Hence to get a "much bigger deposit" means a massive rent hike...

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    Be very careful, the reason may be that the prospective tenant may not want to know about them or their true intentions. For peace of mind ask lots of questions and check. Or wait for a more straightforward tennant.
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    Have you done background checks on them.

    Sometimes tenant will offer a higher rent and also request you don't do so many inspections also. Because they want to start a cannabis farm in your property. So if you have a choice between tenants who look more stable, family etc.. then go with that.

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    I rarely bother with guarantor if the tenant of first choice have an excellent credit check, good references, happy to show copies of earnings statements and clear of CCJs etc. 

    I steer well clear of secretive tenants who want to pay six months rent in advance. I had one round offering over the odds and the alarm bells rang when they seemed more keen on the space in the loft and the shed than the quality of the main property. They matched a description that another landlord gave of someone who turned their house into a cannabis den.

    I also steer clear of tenants who cannot communicate full-stop as that means they won't call when there are problems with the property or gas checks need to be arranged etc. As Adam says, it depends on the quality of the other prospective tenants.

    I have actually done the opposite in the past and accepted what I considered a good tenant who offered less but was going to do some improvement works at the property as he was a carpenter and the wife was an interior designer so wanted some rooms to showcase her curtains and fabric work and he wanted to showcase some built in cupboards and wardrobes, we built it into the terms of the tenancy agreement and did regular check ups and they both did a great job, it isn't always about who offers the most rent.

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    Agree 100% with this.

    Penthouse, why are you asking for a guarantor in the first place?

    Like 3Nests, I would only take a guarantor if there was a reason which is usually if they failed referencing checks and couldn't qualify for RGI.

    If on top of this they are also unable to provide a guarantor, then I don't care how much money they want to pay me, it's not happening!


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