Landlords want guarantors with new tenants
Allison Thompson, of LRG, says more than half of property owners request a guarantor if tenants don't meet affordability checks.
More than half of landlords are now more likely to request a guarantor from tenants who do not comfortably meet standard affordability checks.
The finding, revealed in new research from LRG, comes at a time when property owners are now unable to request more than a month’s rent in advance under the Renters’ Rights Act.
A further 28% said their approach had not changed, while 13% had always required a guarantor in those circumstances.
Landlords need confidence that a tenancy is affordable and sustainable.”
Allison Thompson, Chief Lettings Officer at Leaders (pictured), says: “Landlords need confidence that a tenancy is affordable and sustainable, particularly now that rent in advance is no longer available as an additional safeguard.
“At the same time, tenants who do not have family or friends able to act as a guarantor should not assume they have run out of options.”
Significant gap
While more than half of tenants – at 51% – who do not have a guarantor, would look for a cheaper property if asked for one by landlords or letting agents.
LRG says there is “a significant gap in awareness” of professional guarantor services.
Asked what they would do if they needed a guarantor but did not have a family member or friend who could help, 51% of tenants said they would look for a cheaper rental, and 16% said they would stop their property search.
Only 18% said they would use a professional guarantor service, while 15% selected another option. Nearly three quarters of tenants, 74%, said they were not aware of professional guarantor offers.
