Being Guarantor For Son's Student Accommodation

Anoneemoose

Hi,

I have just received a letter asking me to be guarantor for my son's rent for the next Uni year. It states potential liability of £3498 in rent if he should default. I totally understand this side of things, but I wondered whether it would be possible to get them to add something into the contract such as letting me know should he default etc, like after the first month and so on? And if they weren't to let me know for whatever reason, they would be breaching the contract sort of thing. Or does that just not happen?

My son has always been good in paying his rent previously and I don't think he would let me down, but I do want to safeguard myself as much as possible.

Thanks in advance,

Anon.

greensalad

Instead of asking an internet forum, why not ask the letting agent?

Anoneemoose

greensalad wrote: »

Instead of asking an internet forum, why not ask the letting agent?

Because I wanted to get an idea if it was possible first and to see if anyone else has done the same, before asking.

sourcrates

Anoneemoose wrote: »

Because I wanted to get an idea if it was possible first and to see if anyone else has done the same, before asking.

I have no idea, never having been in that position.

I would suggest an informal approach to them, see what they say ?

After all, don't ask, don't get !!

AaronKurtis

I have worked in student accommodation for the past 8/9 years, both in halls of residence and houses. It is common practice for the guarantor to be informed around 14 days after the payment became due. You would also receive letters, calls and emails on a weekly basis until the payment is due.


One option is for you to contact the accommodation provider after the payment was due to check its been received. As most providers charge rents in 3 instalments, (September, January and April) Just make a diary note to check.


You could ask the accommodation provider for a copy of their debt management policy?

foolofbeans

this post would be better on the housing (renting) board.
I'm fairly sure there was some info a while ago that stated if the the guarantor form wasn't set up as a deed (with witnesses) then it was unenforceable so the law is on your side.
Very knowledgeable people on the housing board will confirm.

Anoneemoose

foolofbeans wrote: »

this post would be better on the housing (renting) board.
I'm fairly sure there was some info a while ago that stated if the the guarantor form wasn't set up as a deed (with witnesses) then it was unenforceable so the law is on your side.
Very knowledgeable people on the housing board will confirm.

Thanks for this. I shall post in there too.

Anoneemoose

AaronKurtis wrote: »

I have worked in student accommodation for the past 8/9 years, both in halls of residence and houses. It is common practice for the guarantor to be informed around 14 days after the payment became due. You would also receive letters, calls and emails on a weekly basis until the payment is due.


One option is for you to contact the accommodation provider after the payment was due to check its been received. As most providers charge rents in 3 instalments, (September, January and April) Just make a diary note to check.


You could ask the accommodation provider for a copy of their debt management policy?

Thanks for the information, very helpful.

pleasedelete

Check that you are only liable of for his rent and not liable for his liabilities- basically his contract may say that if any of them doesn't pay the others are liable- so you could become liable for the whole house.

They don't credit check you as a student guarantor. I provide a redacted photocopied driving licence (removed all details but name) but refused to give any bills or financial information and it has never been refused. I also
only signed a statement to say that I was only being a guarantor for £XX amount (their rent for the year) and was not being a guarantor for my child's liability (the whole house rent if the other defaulted and their parents wouldn't pay).

Do you pay him top up living expenses- if so you could pay all or part of the rent directly?

Mine have only ever paid monthly- never in 3 monthly blocks to private landlords. They paid uni owned accommodation termly.

Anoneemoose

pleasedelete wrote: »

Check that you are only liable of for his rent and not liable for his liabilities- basically his contract may say that if any of them doesn't pay the others are liable- so you could become liable for the whole house.

They don't credit check you as a student guarantor. I provide a redacted photocopied driving licence (removed all details but name) but refused to give any bills or financial information and it has never been refused. I also
only signed a statement to say that I was only being a guarantor for £XX amount (their rent for the year) and was not being a guarantor for my child's liability (the whole house rent if the other defaulted and their parents wouldn't pay).

Do you pay him top up living expenses- if so you could pay all or part of the rent directly?

Mine have only ever paid monthly- never in 3 monthly blocks to private landlords. They paid uni owned accommodation termly.

I think he pays by the term. And although I have no issues with my credit report, I don't particularly want a credit search on my records because of this! So, hopefully as you say they won't do that.

We don't top him up. Only the odd things he needs now and again as well as bits of money here and there. I have just had to give up work so we're down financially too.

G_M

pleasedelete wrote: »

Check that you are only liable of for his rent and not liable for his liabilities- basically his contract may say that if any of them doesn't pay the others are liable- so you could become liable for the whole house.
in a 'joint and several' tenancy, signed by multiple joint tenants, there is no legal distinction between his rent and anyone else's rent. There is just the full rent for the tenancy, which each joint tenant is liable for - both jointly and severally.

So if one joint tenant fails to pay his 'share', each of the others is fully liable.

And that means if any of those others has a guarantor, that guarantor is also fully liable.

Same with damage liability. If tenant A damages/breaks something, ALL the joint tenants are equally liable, and so are the guarantors.

They don't credit check you as a student guarantor.
Who is 'they'? Different universities, and different landlords, will have different policies. Certainly most sensible private landlords, and/or their agents, will credit check a guarantor. What is the point of replacing a tenant who is a poor credit risk, with a guarantor who may be an equally poor credit risk......?

I provide a redacted photocopied driving licence (removed all details but name) but refused to give any bills or financial information and it has never been refused.
You've been lucky
I also only signed a statement to say that I was only being a guarantor for £XX amount (their rent for the year) and was not being a guarantor for my child's liability (the whole house rent if the other defaulted and their parents wouldn't pay).
'a statement'? Part of the Deed of Guarantee or something else......? Who else signed this 'statement'?

Do you pay him top up living expenses- if so you could pay all or part of the rent directly?

I'm fairly sure there was some info a while ago that stated if the the guarantor form wasn't set up as a deed (with witnesses) then it was unenforceable so the law is on your side.
Very knowledgeable people on the housing board will confirm.

You are correct that a guarantee agreement should indeed be Executed as a Deed. To be legally enforcible (strictly speaking - but see later)an agreement must be either a contract or a deed. A guarantee agreement cannot be a contract since the guarantor receives no benefit in return ('considertion'), therefore it should be a Deed.

However, there are commonly cases where courts have accepted guarantee agreements which have not been properly executed, on the grounds that the intention of the agreement was clear to both sides.

So whilst a guarantor could argue the agreement is invalid if it is not properly executed as a deed, a court might, or might not, accept this arguement.