Advice about being a rent Guarantor

moromir

Lilibee I'm going to give you the third best bit of advice on this whole thread - ignore the posts of complete rot coming from Bristol_pilot. You clearly arn't an awful person so ignore Bristol's attempt at goading and upsetting you.

As for the first and second best bits of advice on this thread - PasturesNew and G_M are both experienced posters on this board and you would do well to consider their advice thus far. (ETA and Greenie's advice looks sound)

bristol_pilot

The advice from PasturesNew and G_M is identical to mine: don't do it. No-one has advised that it is a good idea for the OP's Dad to sign this contract and Greenie, a landlord, notes how generous the offer is considering how much it could cost him. But some people just won't listen and must be allowed to make their own mistakes.

Orpheo

PasturesNew wrote: »

The biggest issue would be: you come home one day and find your bf in bed with the local floozy.

And from here:

On the other hand, if you'd not had a payrise and if the missus had left you and if he'd put it up £75 you'd find you couldn't afford it and rents were unaffordable.

Issues, PN?

BitterAndTwisted

And your point is? I can't see how your post has contributed to the discussion at hand. Do you have an opinion about the subject or any advice to offer the OP at all?

G_M

bristol_pilot wrote: »

The advice from PasturesNew and G_M is identical to mine: don't do it. No-one has advised that it is a good idea for the OP's Dad to sign this contract and Greenie, a landlord, notes how generous the offer is considering how much it could cost him. But some people just won't listen and must be allowed to make their own mistakes.

Kindly don't misrepresent me. I have not said "Don't do it".

I have stressed the extent of the financial obligations a guarantor agreement imposes, and the risks involved, but I would now add that guarantor agreements do serve a useful purpose (I've insisted on them myself in the past as a landlord!) and it is for the tenant and guarantor to decide if they need/wish to take those risks, in order to reap the benefits (ie of securing a tenancy agreement).

As for comments about the inventory. What is important here is the accuracy of any inventory the tenant is asked to sign. The non-existance of an inventory is not a major issue. If there is no inventory, it is to the landlord's detriment, not the tenant/guarantor's.

Orpheo

BitterAndTwisted wrote: »

And your point is? I can't see how your post has contributed to the discussion at hand. Do you have an opinion about the subject or any advice to offer the OP at all?

:eek: Hold on to your knicker elastic there.

BAT by name...

Geenie

Lilibee wrote: »

Thanks Geenie for your posts, very helpful. I'll make sure to be VERY meticulous about the inventory this time, even more so than usual!

Could I ask, if you've asked for a Guarantor for one of your properties before, does the agreement you use contain clauses like those posted above? (E.g. the one where it says LL could ask for money for damages from Guarantor without first trying to get it from tenants etc?)

I should probably note, I'm not intending to damage or break anything, or leave without paying rent at all! I'm very proud of my record of 100% deposit returned for every house I've ever lived in

Lilibee, I do not let properties furnished. They contain carpets, and in some cases curtains, but no white goods. I can state that when ever a guarantor has been required, it was for the purpose of paying any due rent when the tenant left, and at a stretch any damage that could exceed the deposit value. So the clauses you mention don't apply to me.

I have never claimed on a deposit let alone a guarantor because I have been very fortunate with tenants. There have been odd occasions in the past when we could have, but we didn't persue it because we were glad to get the tenants out with any fuss. I also think as a LL, I have to accept a certain amount of wear and tear as part of the business.

There are LL's unfortunately who seem hell bent on getting as much as they can out of tenants..... to the point of making them pay for improvements to their properties!

I would walk away, but I am not in your situation. Truth be told, it could all be fine with your LL, but we have to say what could go wrong so that you have your eyes wide open.


I wish you all the best Lilibee.

DVardysShadow

bristol_pilot wrote: »

.... I'm afraid the OP's Dad is going to get shafted. Hope he has sufficent cash available that he doesn't lose his own home, which is the worst case scenario. ....

I wouldn't have disagreed with this if it have been framed as 'could' rather than 'will'. As it is BP, it looks like you have read PN's scenario and assumed it is inevitable.

DVardysShadow

Lilibee wrote: »

=========================================

2. Landlord's Protections
2.1 The Guarantor acknowledges and agrees that this Guarantee is and at all times shall be a continuing security and shall extend to cover the balance due at any time from the named Tenant to the
Landlord under or in respect of the Agreement and any continuation renewal or variation thereof.
2.2 The Guarantor acknowledges and agrees that none of its liabilities under this Guarantee shall be reduced discharged or otherwise adversely affected by:-
2.2.1 Any variation extension discharge compromise dealing with exchange or renewal of any right or remedy which the Landlord may now or hereafter have from or against the Tenant(s) in respect of any of the obligations and liabilities for the Tenant(s) under and in respect of the Agreement
2.2.1 Any act or omission by the Landlord or any other person in taking up perfecting or enforcing any security or guarantee from or against the Tenant(s) and/or the named Tenant.
2.2.2 Any grant of time indulgence waiver or concession to the Tenant(s)
2.2.3 Any invalidity legality unenforceability irregularity or frustration of any actual or purported obligation of the Tenant(s)
2.2.4 Any claim or enforcement of payment from the Tenant(s)
2.2.5 Any act or omission which would not have discharged or affected the liability of the Guarantor had it been a principal debtor instead or Guarantor of Indemnitor or by anything done or omitted by any person which but for this provision might operate to exonerate or
discharge the Guarantor or otherwise reduce or extinguish its liability under this Guarantee

2.3 The Landlord shall not be obliged before taking steps to enforce any of its rights and remedies under
the Guarantee:-
2.3.1 To take action or obtain judgement in any Court against the Tenant(s)
2.3.2 To make or file any claim in liquidation administration or insolvency of any of the Tenants
2.3.3 To make demand enforce or seek to enforce any claim right or remedy against the Tenant(s)

=============================================

As you are not going to mess up on the big stuff, most of the above is moot.

But the problem with rental guarantees is that they leave the guarantor powerless. Probably the unrecognised and unintended consequence is that the more astute people with the means to back a guarantee will duck out, leaving the guarantee to be made by less astute people with less means.

It is totally unusual for a guarantee to be limited in any way - they are usually completely open ended even as to the extent to which liabilities are allowed to accumulate. But I think that guarantees should be limited.

In this case, I disagree with the thrust of section 2.3 and I would want to substitute

2.3 The Landlord shall be diligent in minimizing his losses to be covered under the Guarantee. The Landlord shall inform the Guarantor of all breaches of the contract which may require the Guarantee to be invoked promptly and without delay. In the case of such breach, the Landlord shall, at the direction of the Guarantor and at the expense of the Guarantor
2.3.1 Take action or obtain judgement in any Court against the Tenant(s)
2.3.2 Make or file a claim in liquidation administration or insolvency of any of the Tenants
2.3.3 Make demand enforce or seek to enforce any claim right or remedy against the Tenant(s)