Being a guarantor for students

welnik

My DD is looking at renting with two friends she has made at Uni. The landlord wants a guarantor for each applicant which I am quite nervous about as it states that the guarantors are liable for up to 100% of the rent.

I've seen people commenting online about companies that offer guarantor insurance but I am wondering whether these are legit.

I'm really not happy about entering into an agreement with what effectively are strangers to me and no matter how much my DD goes on about "they will pay the rent" I am still not convinced that it's a wise move.

Any advice gratefully received.

snilloct1957

Being a guarantor is a risk you should be aware of. Years ago, at uni, my son acted as a guarantor for another student for rent, and she defaulted on her payments from the get go. He was chased by the LL for money and eventually the support services at the uni got involved. He told me about it, I did a credit check through the NLA and discovered she had three County Court judgements against her name to the tune of several thousand pounds. A nasty piece of work I have not forgiven.:mad:

welnik

I think I'm going to get the tenancy agreement checked by a solicitor to see if it would stand in a court of law and also amend it to say I will only guarantor my daughter's share. If they say no to that, then I'm not signing up. The other alternative I think would be offer to pay her share of the rent for 6 months or something. I am not at all happy about guaranteeing people I have only met once!

davidmcn

Bear in mind that she's (probably) going to be jointly and severally liable for her housemates' debts whether or not you're guaranteeing them. Does she understand that?

wesleyad

welnik wrote: »

I think I'm going to get the tenancy agreement checked by a solicitor to see if it would stand in a court of law and also amend it to say I will only guarantor my daughter's share. If they say no to that, then I'm not signing up. The other alternative I think would be offer to pay her share of the rent for 6 months or something. I am not at all happy about guaranteeing people I have only met once!

Why wouldn't a tenancy agreement stand up in court? It's about as basic as it gets.

Regarding amending it, as David says, student lets are (nearly always) joint and several. So this would mean any of the tenants can be pursued for any or all of the rent. And as such, if you act as guarantor for one tenant, you can still be pursued for all the debt. You will need to get separate contracts for each tenant.

Alan2020

For goodness sake don't be penny wise and pound foolish, just rent a studio apartment for her, in reality will work out a lot less hassle and money

nomorekids

I guaranteed the rent for my son who continued to live with the same people for 4 years. I thought I was guaranteeing his share and that is how the paperwork read. It was years later when my son told me that having one guarantor was all the letting agent needed so none of the other parents bothered to sign.

Socajam

I agree with Alan2020 10%
After someone I truly trusted last year did actually stole from me, I would never trust anyone again - not even family and I would never sign anything for anyone.
Your daughter have to make a decision, does she want to live alone where you will sign for her or live with friends where you will not sign - simple question.
If she wants to live with friends, I will most definitely not be a guarantor.

csgohan4

Don't do it unless the contract is something your happy with. If only for your offspring and your happy with the risks

https://forums.moneysavingexpert.com/discussion/5846251/being-chased-for-unpaid-as-a-guarantor

Kentish_Dave

Why would you take it to a solicitor? If you are happy to take on the risk then do so, if you are not then don’t.

What a terrible example you’d be providing to your daughter to sign with the intention of wriggling out of it later.

silvercar

It is what parents of students do.

Students want to live in shared houses. Landlords won't lend to anyone with no income and no previous landlord reference, so require parent guarantors.

If you don't trust your daughter in choosing her friends and in paying the rent, then how do you expect anyone else to?