Being a guarantor for a rental property

Nik777

I've been asked by a family member to be a guarantor for a one year tenancy. As a home-owner with a retired husband and also a co-owner of a house with my mother I feel uncomfortable with this. Although I trust the family member who requested my help there are no guarantees that, for instance, she might not lose her job.

The reason a guarantor is required apparently is because the current landlord won't provide a reference. The new landlord has a "premier lettings" service that guarantees rent, legals and damage and so the reference OR a guarantor is key.

Has anyone on the forum had experience with this? Any problems? I'm thinking that if problems arose, I wouldn't get much notice before the landlord approached me for the rent (which I can't afford on top of my usual outgoings by the way!)

Thanks!

TonyMMM

Nik777 wrote: »

I wouldn't get much notice before the landlord approached me for the rent (which I can't afford on top of my usual outgoings by the way!)

Then you shouldn't even be considering being a guarantor ... apologise, but say no.

G_M

If you cannot afford, or are not willing to pay, the full rent, on a long-term indefinate basis (not just one years - the tenancy could continue on a Periodic basis after that!) then don't do it.

Same with damage the tenant may cause. You will be legally liable if the tenant does not pay for repairs.

tbs624

Nik777 wrote: »

I've been asked by a family member to be a guarantor for a one year tenancy............
The reason a guarantor is required apparently is because the current landlord won't provide a reference. .

Any idea *why* the current LL won't play ball with the reference?

Has the relative been given Notice by the current LL or is s/he choosing to move on to somewhere new?

Don't sign up under pressure - being a guarantor is a big commitment

This family member may have to reconcile themselves to finding a different LL who has less stringent referencing in place and/or start off with an initial 6 month Fixed Term

Nik777

It appears the landlord has spent the deposit and is now trying to make things awkward.

I don't know anyone who has been a guarantor and whether it is usually trouble-free if you are dealing with agents or not.

If there is a 6-month term is a guarantor not usually required?

Thanks everyone for your responses so far! I'm feeling very pressured since I work full-time and have quite a lot of other stress going on, and was told on Wednesday that this family member needs to move out Saturday! (yes, that would be tomorrow...)

PasturesNew

Would the agency, instead, take 6 months' rent up front? And, in that case, could you limit your exposure to lending your relative the first 6 months' rent with them paying you back over 6 months?

Nik777

Well, if I had savings then I'd consider that - it is a really good idea. Unfortunately I'm not in a position where I could, which is another reason why I'd be panicking if I was called upon to pay rent/damages/legal costs.

G_M

Nik777 wrote: »

It appears the landlord has spent the deposit and is now trying to make things awkward.
I know this was not your query, but is the deposit registered? Which scheme? Have you checked? Have you raised a deposit dispute with the scheme?

I don't know anyone who has been a guarantor and whether it is usually trouble-free if you are dealing with agents or not.
It is trouble-free if the tenant complies with all their obligations.
It is expensive if the tenant runs up rent arrears.causes damage....

If there is a 6-month term is a guarantor not usually required?
No

...................................

Nik777

I'm not sure about the deposit, but I believe it should have been registered and I'm sure there should be recompense if this has been held back without good cause.

It is interesting that you say a 6 month term may not require a guarantor. The agents are basically saying as there is no reference then the premier lettings insurance won't proceed with no guarantor but I think they are just trying to cover all the bases. Hoping that on a 6 month term they might be more accepting!

Brb

Has this family member rented previous to the rental they are leaving ?

One could argue that it is better to obtain a reference from your last LL and not the current LL (current LLs often give good references to bad Ts in order to aid in their moving out of their property). A previous LL has no such need to lie.

fishybusiness

We got around it by paying another 2 months rent upfront, so landlord has 3 months rent upfront plus the deposit.

Not great from our point of view, and took some negotiating, we are happy in our home, landlord is happy too.

We did look at properties where guarantor was a requirement, nice as they were we didn't want to ask parents etc to commit.

Bottom line I think is that sometimes people want what they just can't have. A guarantor would give them that, potentially at someone else's expense. Very dodgy ground.