Signing tenancy agreement before guarantor in place

MumOfTwoStudents

My two children are due to move into a joint tenancy student accommodation next week. However, we were advised at 5pm two days ago that one tenant does not have a guarantor. 

They advise that they have been ‘chasing’ daily for months now - but they are only letting us know now. 

All tenants, including this one, has signed the tenancy agreement back in May. But nothing was mentioned about this one tenant having no guarantor. So now they are saying that this tenant can either move in without a guarantor. Or if he ‘doesn’t want to’ the remaining tenants have to cover his rent. 

I get that there’s a joint responsibility here. But. Shouldn’t the tenants have been advised about the fact this tenant did not yet have his guarantor in place (given the ramifications for the remaining tenants if one isn’t found before moving in) before signing or at least shouldn’t all the guarantor agreements have been signed before distributing the tenancy agreements. 

Thanks in advance. 

MumOfTwoStudents

I forgot to mention there are 7 tenants in total for this application. 

theartfullodger

So That's a firm legal contract to provide that accomodation to them.  They can sue for losses if you fail to supply.

What training in being a landlord, please?

MumOfTwoStudents

I’m not the landlord. I’m a parent of two of the tenants. 

I want to know why we weren’t told that one tenant didn’t have a guarantor in place until now and whether it was legal to not tell us or ensure all tenants have this prior to signing tenancy agreement. 

jemima82

Presumably you are a guarantor? What’s the wording of the agreement?

either you’re only guaranteeing your kids’ share (unlikely) or you (and any other guarantors) can be held accountable for any and all outstanding rent.

Either way, I don’t see that one tenant not having a guarantor materially changes your situation.

MumOfTwoStudents

It doesn’t as long as they take up their tenancy and pay their rent. Yes we are liable for any and all outstanding rent.

I’m reasonably certain they haven’t got their deposit either. So my kids can’t move in until they pay their deposit too. If it’s not done straight away then that’s going to be a lot of 300 mile round trips for me to bring stuff back home and forth (rather than moving things within the same city as we planned next week) as their current tenancy is ending and they need to empty their flats. 

It appears that the agents already seem to be letting him get away with leaving the tenancy scot free. Whereas they say we are liable. Seems to be one rule for him and different for us straight away. 

I want my two out. I don’t trust the agent at all after this and I was hoping that the tenancy agreement could be invalid if guarantors weren’t in place for everyone prior to signing. 

theartfullodger

Sounds like agent and landlord don't know what they're doing.  Remember in England a lettings agent requires no qualifications, no training, no criminal records check.  Could be fully staffed by ex-lags from Brixton nick on early release form sentences for fraud and GBH.  Other countries do things better!  Come on England!

Agent works for Landlord, not tenants, certainly not mum or dad if tenants.  

MumOfTwoStudents

It sounds that way to me too. I don’t trust them one bit. They are registered with a professional body so I’ll complain to them once we are in and with the keys. Not sure what resolution I’d be looking for. I guess see what position we are in financially and whose rent and deposit we end up getting chased for. 

I have no idea why they didn’t just withdraw the tenancy when they weren’t getting anywhere emailing this guarantor daily for however long. We should’ve been made aware of this at least a month ago. Instead they are blaming the relationship between the tenants saying they should have known this one was having difficulties. It’s very unethical. 

deadendwaterfall

theartfullodger said:

Sounds like agent and landlord don't know what they're doing.  Remember in England a lettings agent requires no qualifications, no training, no criminal records check.  Could be fully staffed by ex-lags from Brixton nick on early release form sentences for fraud and GBH.  Other countries do things better!  Come on England!

Agent works for Landlord, not tenants, certainly not mum or dad if tenants.  

Which other country's do things better? Don't you just love the laziness and ambiguity in not specifying which countries?

By your definition, North Korea could do it better but we won't know for sure unless you are more specific and less ambiguous. 

theartfullodger

Scotland in terms of regulation of letting agents, for one.  But of course in other aspects of landlord/tenant it's not so good .(I am a landlord in both countries).

I certainly would like to see better regulations and control of letting agents in England. Your views on the question please?

Surely all decent & sensible tenants and landlords would wish to see more available information about, control of and protection against lettings agents in England, or would you disagree, please?

Thanks for your kind thoughts.

saajan_12

MumOfTwoStudents said:

My two children are due to move into a joint tenancy student accommodation next week. However, we were advised at 5pm two days ago that one tenant does not have a guarantor. - okay, so joint and several liability so I hope they know & trust their co-tenants well!

They advise that they have been ‘chasing’ daily for months now - but they are only letting us know now. 

All tenants, including this one, has signed the tenancy agreement back in May. But nothing was mentioned about this one tenant having no guarantor. So now they are saying that this tenant can either move in without a guarantor. - the guarantor really protects the LL, so is the LL happy letting with 7 tenants and 6 guarantors to chase? Even if the 7th guarantor is in place, you could still be chased for the full rent. 
Or if he ‘doesn’t want to’ the remaining tenants have to cover his rent. - Well yes, its not 'his' rent, but they are all liable for 100% of it. So even if he and his guarantor are in place, if they don't pay your kids or any of the other tenants could be charged the shortfall and they would have to chase the non paying one for their unofficial 'share'.   

I get that there’s a joint responsibility here. But. Shouldn’t the tenants have been advised about the fact this tenant did not yet have his guarantor in place (given the ramifications for the remaining tenants if one isn’t found before moving in) before signing or at least shouldn’t all the guarantor agreements have been signed before distributing the tenancy agreements. - no direct responsibility to let you know, and given the co-tenants will be entering into a joing & several contract, the assumption would be they know eachother and communicate. 

Thanks in advance. 

The issue of communication earlier is really just one of customer service / being helpful, not their actual responsibility. At this point, the key is
1. ensuring the LL agrees to the 6 guarantors only and you get a fully signed tenancy agreement
2. ensuring all co tenants and guarantors communicate and agree to split the rent and pay on time (ideally in writing). Then if someone doesn't pay, they can be later sued for their share between the tenants.