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Standard practice. The 'guardian' numbers always inflate year on year along with cost and 'fees', till it either 1. Becomes unruly or 2. Council starts sniffing, then it's a case of break it down and acquire more property.
The longest one I've been in was a shade over two years before a combination of greed/flaunting of the rules/personal profit bought it down.
The difference between tenants rights and what guardians are entitled too can vary depending on the guardian company. I know that some have curfews, no guests policies and the ability to evict with as little as 24hrs notice. Often the living conditions are less than satisfactory. A commercial property I visited recently that was meant to house around 8 - 10 people had 20 living there against the agreement between them & owners. They do stuff like this because each of the 'service users' has to pay. For the place I'm talking about the cost was pretty much the same as a cheaply rented place. Then they charge the owners and pocket tons of money.