Guarantor - When is it necessary?

[Trizzy]

Just an update. My tenants issued me a check in the amount of first and last month`s rent. I cashed, and there was no issues.

My question is: When is it necessary to have a group of tenants require a Guarantor?

It just so happens that my tenant`s are U of W students. As there first and last went through, I assume they are capable of paying the remainder of the tenancy.

But maybe i`m wrong, we shall see..

Basically, should I be asking for a Guarantor regardless? I have a strong premonition that the majority of my rental demographic will be students.

Thanks again guys.

 

[Sherilynn]

Greetings.

Whenever I have tenants with no income, I ask for guarantors. Student funding rarely covers all expenses so there is usually someone helping with the bills anyway. I explain that a guarantor is standard in that situation. (I don`t like the word "policy.")

People who plan on paying the rent on time shouldn`t have a problem with it.

Please be advised that the guarantor may need to be on the lease to be liable.

Regards,
Sherilynn

 

[housingrental]

Do they have income / assets sufficient to support their rental application?
If not... why not guarantor who does???

 

[Trizzy]

No income/assets, however I ran credit checks, and he was A+. $3,500 check up front, and their borrowed family vehicle is a 2008+ Audi S4. Couple G`s spent on that, so they can`t be hurting.

I think I will request a Guarantor from now on. I mean, if they hesitate or deny the request for one, then perhaps they don`t intend on paying their bills on time or at all.

 

[housingrental]

If potential guarantor has S4 some chance they can backstop the $350 rent

 

[Trizzy]

Yeah, but they are not legally binded to do so. Hopefully the situation does not arise that a Guarantor - had I asked for one - would be necessary.