Student Tenancy - Shared House

sazzy32

Hi
I am being asked to be a guarantor for my daughter and her student house next year.
This appears to be a joint tenancy with 7 other girls, which if i have read right i am not only liable for her share but all if needed.

Now obviously the other girls have a guarantor as well, so coming to me would be the final resort as such.

There doesn't appear to many landlords who operate single agreements in this area, so we will probably have to go ahead, so is there any way i can protect myself a bit?

thanks

G_M

Well you could ask the landlord to alter the guarantor deed to make you liable only for 1/8th of the rent and 1/8th of any damage.

But it's unlikely he will agree as these arrangements are quite common.Esp for student lets.

I agree it's a huge potential financial liability. Do you or your daughter know the other 7? Well?

Yes, presumable the other 7 will also have guarantors (check!), so in the worst case scenario (eg months of unpaid rent on the property) the LL could chase all 8 guarantors, but he does not have to. He could just pick the easiest (to find) or the richest (most likely to pay).


As an aside, many landlords (and even professional agents) get these agreements wrong. They should be Executed as a Deed, and witnessed. And the guarantor should have been given a copy of the tenancy agreement so they know what they are agreeing to. Without these, the agreement may be unenforcible........

mchale

G_M wrote: »

And the guarantor should have been given a copy of the tenancy agreement (before they sign the guarantor agreement) so they know what they are agreeing to. Without these, the agreement may be unenforcible........

Not being pedantic

System

I would personally see if there are other options such a larger deposit or some upfront payment of the rent.

With eight student tenants, the mind boggles with all the possible issues.

G_M

Heng_Leng wrote: »

I would personally see if there are other options such a larger deposit or some upfront payment of the rent.

Size of deposit is now limited by the Tenant Fees Act 2019.
Upfront rent is all very well, but even if it is for the full Term of the tenancy (eg 12 months whatever), that does not help if the tenancy then becomes periodic.
And typically student LLs prefer guarantors because of damage issue, not rent.


With eight student tenants, the mind boggles with all the possible issues.

and the potential costs..... :eek:

lookstraightahead

There appears to be little you can do about it. I've done the same with six third years this year. They are great kids but it's a huge risk. It was either this or nowhere to live.

davidmcn

Bear in mind that even without guarantors, the tenants would all be jointly and severally liable for each other's debts. Does your daughter want to sign up to that? If so, who's going to bail her out if need be?

G_M

The fairest way for this to be arranged is for each tenant to have a sole tenancy for their room with shared access to communal areas.
I suspect the LL's motivation is/may be to

* maximise the ways of recouping any losses (ie by claiming off all/any of the 8 tenants irrespective of blame), and/or

* avoiding registration as an HMO.... perhaps.


https://www.gov.uk/house-in-multiple-occupation-licence

silvercar

It’s fairly standard in the student rental market. If you don’t agree then the landlord will just find another group of students. That said, landlords or their agents at this end of the market seem to be fairly lackadaisical about checking guarantor paperwork.

anselld

G_M wrote: »

I suspect the LL's motivation is/may be to

* maximise the ways of recouping any losses (ie by claiming off all/any of the 8 tenants irrespective of blame), and/or

This is true. Getting anyone to take responsibility for any damage in a communal area would probably be impossible with individual tenancies.

G_M wrote: »

* avoiding registration as an HMO.... perhaps.

Individual tenancies does not change the housing act definition of an HMO and would not avoid the need for licensing. However it does change the Council Tax definition of HMO so many Landlords prefer joint tenancies which are not HMO for the purposes of Council Tax.

The limited form of guarantor is fairer where each tenant/guarantor is liable for their share of rent. However even these forms leave the guarantors fully liable for damage for the reasons above of lack of ability to attribute blame.

As others have said, there isn't really a way round it. Individual room shares are rare and tend to be down-market.

AdrianC

sazzy32 wrote: »

I am being asked to be a guarantor for my daughter and her student house next year.
This appears to be a joint tenancy with 7 other girls, which if i have read right i am not only liable for her share but all if needed.

The girls are renting the house jointly and severally. They are each jointly and severally responsible for the full rent. If the other six evaporate into the ether, your daughter doesn't get to just pay 1/7th, she owes the full rent.

As guarantor, you are the backup for your daughter's responsibility for the full rent - and any damages and other liabilities arising from their tenancy.

Now obviously the other girls have a guarantor as well, so coming to me would be the final resort as such.

You're just as much the "final resort" as any of the other six guarantors are. If you are the easiest to trace and have the easiest assets to access, then you're the first resort. For the full amount...

There doesn't appear to many landlords who operate single agreements in this area

If you want a "single agreement", then your daughter needs to be renting a single room, not being one of a group renting an entire property.

so we will probably have to go ahead, so is there any way i can protect myself a bit?

Easy answer...? No.

Long answer...? So long as all seven students are upright responsible mature adults, and don't have any friends who might trash the place, and all stick to their studies for the entire year, and the other six have nice respectable upright wealthy parents... You're unlikely to get tapped up.

What could possibly go wrong?