Student guarantor

tacpot12

Given the issue of guaranteeing rent for student accommodation, I don't know why more use isn't made of ESCROW accounts. If all the parents put their child's portion of the rent into an ESCROW account, with a contract that governed when the money could be returned (i.e. when child had paid all the rent that was due under the contract), surely there would be no need for anyone to be a guarantor, and no risk that Parent A would have to pay for Parent B's child.

fewcloudy

moneysaving790 said:

hi all, 
has anyone been asked to sign a guarantor for you son/daughter only to find you are a guarantor for everyone at that house. Very risky and could be costly if you end up paying for strangers defaulting. 

Any advice ????

Yes I have, many times, for my 2 children who went to London to study (a year between them and not living together). Between them I have been guarantor on no less that 8 occasions and counting...

It's been 5/6 years for oldest, and there have been "issues" over that time for both of them, nothing serious, generally made worse if there is an Estate Agent involved rather than being able to speak direct with landlord/lady.  But I can see how a LL/L might choose (or have) to conduct business that way.

Most recently, youngest and two flatmates have all been furloughed since March, or received self-employed grant twice now. Receiving 80% of wages is actually way less than it seems, as it does not include tips they relied on in their jobs. Basically they couldn't pay the rent. Guarantors asked to step up to the plate, but what if they are furloughed/unemployed/redundant...

There will be a great number of guarantors getting a bit twitchy for the Pandemic reason alone, and I suspect quite a few are in for some nasty surprises before this is over..

dimbo61

There are a great number of home owners with mortgages struggling.
People renting from housing associations and council tenants also struggling.
Please do your homework when signing up to be a guarantor.
Check the tenancy agreement carefully, check the deposit has been protected, 
Check to see if the student house is registered as a HMO with a HMO licence if over 3/5 tenants depending on local councils.
Check the details to see if the advert has the EPC and when your child moves in check there is a valid Gas Safe Certificate and EICR certificate for the property.
Try and use University approved providers and accredited landlords like the scheme run by Manchester Student Homes.
On the day they move in read the meters and take photos, Take photos of the rooms and any damage.
Inspect the microwave, fridge freezer, washing machine and tumble dryer.
Have they got PAT stickers ?
Can you spot any dangers ?
Alarm system, smoke alarms, CO alarm, Secure doors and windows.
Get your child to email any faults as soon as they notice them to the Lettings agents or Landlord direct.
I had to be guarantor for both by sons while they attended University.

olgadapolga

tacpot12 said:

olgadapolga said:

My daughter wanted me to be a guarantor for the house she's just moved into, with three "friends" that I don't know (and therefore cannot trust). I told her that I couldn't do that as I don't have a job that would cover her rent and I wasn't prepared to put the security of my home on the line either as I still have three (minor) children living at home.

 She got around the issue by offering four months' rent in advance, plus her share of the deposit.

However, she still isn't talking to me because I refused to be guarantor.

I understand that there are companies that will be guarantor, for a fee of course.

I'm sorry that your daughter has chosen to fall out with you over this. She is young and doesn't appreciate what a serious risk this is. Kids always think their parents over-react, but when you hear about the problems that guarantors suffer, it is not an over-reaction. I would expect that once she has a home that she has bought with the money she earned over many years she will not be any more willing to put it on the line for three strangers than you are. 

Well, I just tell myself that she'll get over it/understand eventually. I did tell her that I was sorry that I couldn't help her and I did explain why, it's not as if I said, "No!" and left it like that; I've always given my reasons for refusing requests. My daughter knows where I am if and when she needs me. I can do no more than that at the moment.

silvercar

Most landlords of student properties require guarantors; if you don't trust your offspring then you can hardly expect anyone else to do so.
If you refuse to act as guarantor, your student child will be left with the choice of living in private halls (often expensive) or finding a property where the landlord doesn't require a guarantor - most likely to be the properties that no one else will touch!