Shared Renting - Multiple Guarantors?

Apples2

Daughter at Uni, Centre of London

Three girls currently living together, they have had the enevitable falling out so two of them are looking to move to a new flat (my DD plus one of the other two).

They have found somewhere and need a guarantor, this is where I get concerned....

Happy to guarantor my own daughter but not that of her friend (kids have a habit of falling out and all that).

The Tenancy agreement appears to be in Joint Names, the conditions state rent must be paid from one account only and cannot be derived from two seperate tenants accounts (as if it were a single tenancy).

The Agents demand guarantors for both occupants which appears to give them multiple guarantors to jump at.

Whilst I don't mind covering my DD rent problems, if her flatmate was to do a moonlight flit, they seem able to hold me to account to make up her friends half of the rent.

I'm not comfortable with this arrangement but before I fly in demanding a revised tenancy agreement listing only my DD or cancel the whole thing...... is this a normal condition?

At a combined £1,400 per Month this is no small problem on a 12 month contract.

G_M

Yes, it is normal.

But you are right to be cautious.

As a single "joint and several" tenancy, there is no legal division of rent between the joint tenants. They are jointly responsible for paying the FULL rent, and so are their guarantors.

The only way around this is for each tenant to have a seperate contract.

LL's don't like this for many reasons:
* more paperwork
* more people tokeep accounts for
* property may become an 'HMO'

But tenants may notlike it either:
* if one of them leaves, the other has no say on the replacement, since it is a seperatecontract.

Apples2

Many thanks G_M.

The more I read the less I like. The Agents took (non refundable) holding fees from each of them. To me this suggests separate agreements.
Maybe the sceptic in me thinks it is just their way of extracting the most money up front.

I have emailed at this late hour and requested they split the agreement or at least modify the guarantor form so I am responsible for only my offspring.

I am not optimistic but it's worth a punt.

paddedjohn

Just make sure your daughter understands the implications of this from the above post, she could end up living with a non compatible stranger.

But tenants may notlike it either:
* if one of them leaves, the other has no say on the replacement, since it is a seperatecontract.

G_M

Apples2 wrote: »

Many thanks G_M.

...
I have emailed at this late hour and requested they split the agreement or at least modify the guarantor form so I am responsible for only my offspring.

I am not optimistic but it's worth a punt.

If they 'split the agreement' then each is only responsible for their own rent,but they lose all rights on wholives in the other rooms in the house. Daughter's contract will be for her bedroom and shareof communalareas.

If they 'modify the guarantor form so (you) are responsible for only (your) offspring.... well, your off spring in a joint/several tenancy is liable for whole rent!

Dunsaw

If it were me I would not sign up to guarantee someone I did not know. We have just had a similar situation and the agent agreed for my sister to "guarantee" only her daughter.

We also got the agent to agree that the sharers do not have to set up a joint bank account. Why would young people want to set up joint accounts with people they (generally) met less than a year ago?

Protect yourself and your daughter and let the agent know what you wish to do. You have a lot to lose by doing it any other way.

I know that it is more work for the landlord but the increased revenue should allow for the increased paperwork!

Apples2

Many thanks.

I'll see what they come back with today or I'll call them this morning if I get a chance.

If this is a non starter I will take a pop at requesting a 6 month fixed term and month by month rolling contract afterwards, which is my understanding of "normal" in the renting world.

martindow

Apples2 wrote: »

If this is a non starter I will take a pop at requesting a 6 month fixed term and month by month rolling contract afterwards, which is my understanding of "normal" in the renting world.

I don't think this is normal for student lets. The LL wants students to stay for the whole academic year as they would have trouble letting part way through. Students would normally want the security for the year too.

Apples2

As expected, they rejected the request.

All the logic, all the sense makes me run for the hills. But it's my daughter.

Big risk but ultimately, I can afford it. Much better things to spend money on than someone else's 700 per month rent for up to twelve months if it goes wrong.

The friend already has a guarantor but I know far too many people agree to these things without understanding the implications.

I should have started a poll, yes do it or run like crazy.

Manchee

Just so you've got all the facts, it could well be longer than 12 months. If something went wrong and one of the other flatmates refused to pay rent and refused to vacate the property at the end of the fixed term, you could well find yourself liable until the Landlord can go through the courts and get them out, which could take months. Prob highly unlikely, but its always best to enter into these things with eyes wide open. Hope it all goes ok though.

Apples2

Gee, thanks for that

I'll get them out myself if that happens