joint tenancy guarantors

Mrsmoneypenny

My son is out of uni for six months and he and a mate have seen a flat to rent for six months. it is fully furnished. as our son doesnt work, we have acted as guarantor for him, we have just had the joint tenancy agreement to sign. the usual things are on there
date
name of landlord
property address
contents
tenancy period
rent amount
rent due date
deposit
agents name.

The thing that puzzles us is that our son and his mate are named but only we are named as guarantor.

should the other lad have a guarantor? should their name be on the same document as ours.

we have asked the agent and they have said that if anyone defaults it is our responsibility.

Also they agent does not use the Tenancy Deposit Scheme. We have a couple of properties we rent out while we are abroad and our agent always uses the scheme.

Any help please?

princessamy86

The agent has no choice but to use a tenancy deposit scheme-by law. It does sound a bit like you would be guarantor for both of them, not saying you necessarily agreed to this but as long as the agency has one guarantor on the agreement they aren't bothered. I would be having words with son and friend to make sure the friend finds one of his own relatives to be responsible if he doesn't pay his rent!

Mrsmoneypenny

Just heard from the agent and they say because the friend is working full time he doesnt need a guarantor (he has also rented through this agent before).

The agent also says that they do use the tenancy deposit scheme, although that is not what is says on the agreement.

Does the guarantor matter when the other lad is working full time?

princessamy86

Yes both guarantors should be named, but if there is only your name on there the agency won't think it necessary to chase the other person-they just need one person to agree to it. I would make sure that someone else is added before anything is signed, also the agency should be able to provide paperwork relating to which deposit scheme they use.

theartfullodger

The tenancy probably has the words "jointly and severally" in the section on the rent to be paid. That means each tenant is liable for the whole rent if the other tenant doesn't/can't/won't/stone-me-he's-left pay.

As guarantor unless it says you only guarantee your sons bit I think you will find you're being asked to sign up to pay everything for the whole period of the tenancy.

It may not seem fair but that is pretty much standard procedure for guarantors..

Sorry, and good luck!

Artful

tbs624

See if the LA will accept you guaranteeing only to a max of £xxx to cover your son's part of the rent. It wouldn't cost much to get a solicitor to help with the wording.

As Artful says, if you sign a standard guarantor form for one contract for two T's with JS&L you are being asked to cover *all* your son's obligations under the contract - his obligations would include JS&L for the whole lot so what this means is that if either T does a bunk or is unable to pay rent or the costs of damage to the property or its furnishings then the LL can pursue you.If your son is unwilling/unable to cough up the LL can look to the other tenant who has JS&L and also come after you, but if the other T runs up debts to the LL then your son, and hence you, can also be pursued for those.

No one should ever sign a guarantor form without getting proper advice first - go to a law centre, or ask for someone with LL&T experience at a CAB, & get both the tenancy agreement and the guarantor terms checked through so that you fully understand what you are committing yourself to.

nervousmother

Be careful and read the tenancy agreement carefully. Is it a joint agreement? are they jointly and severally liable? You could end up being the guarantor long after your son has left.
If your son leaves the property and his mate stays on a periodic tenancy you may guarantor for him as long as he is at the property. Not a situation I would like to be in.

poppysarah

Unless it states otherwise you will be liable for the other ones rent if he loses his job and can't pay it.
I'd get it changed