Paying guarantor?

slingo

I agreed to be a guarantor for my stepson and his girlfriend who are looking to rent a flat. However, the letting agent are now saying to them that I am a "paying guarantor", which they said means I have to pay the rent on their behalf from day one, and they (the tenants) pay me. I've never heard of this, I haven't signed anything to this effect, and as I understand the status of guarantor it means I become liable should they default on the rent. I want them to walk away to be honest, but they've had to pay a £400 admin fee which they lose if they don't proceed. They also wanted SIX MONTHS rent upfront but they've only managed to scrape four months together. Can they actually do any of this? Surely the contract for the tenancy is between the landlords/agent and the tenants, not me??

Guest101

It depends on what you signed.


And 'walking away' may not be possible either, if they've signed a contract.


Needs more info before can advise.

Marvel1

What does it state when you signed the paperwork? Do you have a copy?

davidmcn

slingo wrote: »

as I understand the status of guarantor it means I become liable should they default on the rent.

No, guarantors tend to be jointly and severally liable, despite what is commonly believed, so creditors are entitled to come to them at any time for payment.

Guest101

davidmcn wrote: »

No, guarantors tend to be jointly and severally liable, despite what is commonly believed, so creditors are entitled to come to them at any time for payment.

That's not strictly correct - it can be the case, but it depends on what was signed.

slingo

The only thing I've personally signed is an agreement to act as guarantor and to give permission for references on me. I've not signed a direct debit form or anything and nothing on the form says anything about agreeing to allow them to take any monies from me. Surely they would initially attempt to get the rent from the tenant before coming on the guarantor?

marksoton

The fact the agent has already stung them for £400 in "admin" fees would not engender much confidence in how they're going to conduct themselves going forwards....

slingo

This is a national estate agents with 140 branches apparently....

Guest101

slingo wrote: »

This is a national estate agents with 140 branches apparently....

1: it's probably franchised
2: that means nothing

eddddy

How does the agent want the rent paid?

Rent is normally paid by standing order into the agent's account. I can't see them complaining about whose account it comes from.

Letting agents / LLs usually regard Direct Debits as being too risky for collecting rent, because of the Direct Debit Guarantee. Tenants can make fraudulent indemnity claims, then do a runner with a year or two's rent in their back pocket.

slingo

eddddy wrote: »

How does the agent want the rent paid?

Rent is normally paid by standing order into the agent's account. I can't see them complaining about whose account it comes from.

Letting agents / LLs usually regard Direct Debits as being too risky for collecting rent, because of the Direct Debit Guarantee. Tenants can make fraudulent indemnity claims, then do a runner with a year or two's rent in their back pocket.

That's what I would have expected. When I called in to the office with my ID documents they never mentioned anything to me about having to pay the rent on behalf of the tenant. They've already offered to give four months rent upfront so I don't get what their problem is....