Being a guarantor for rent - how risky is this?

FlorayG

Cannotrememberusername said:

Thanks everyone. Really appreciate the advice.

Also, what happens in situations where the house is damaged? Would I be liable for that too? Are we looking beyond the rent at a potential debt of thousands if there’s a fire or she breaks something expensive by accident?

The landlord insures the building so that's covered unless the damage is deliberate in which case yes, the LL can chase you through the courts for compensation. Accidental damage to appliances should be covered by tenant's contents insurance; if it's broken due to wear and tear again that's the LL to provide new. A lot of landlords don't provide anything by way of white goods which would mean there's not much of the LL's ownership to break.
Anyway, in your stated situation I really, really wouldn't do it because if she can't pay the rent at the time there's probably no way she's going to be able to pay you back at a later date either and you could be stuck with that charge for a long time. You could spend the whole of her tenancy with the Sword of Damocles hanging over your head

FlorayG

Has she looked at living in lodgings?  The legalities are less onerous and lots of people do it; I think this might be a better option

400ixl

If she did damage to the fixtures and fittings and either the deposit didn't cover it or she refused to pay, then yes they could come after you. If the place burnt down then unless they could pin some sort of negligence on her then it would be down to the landlords buildings insurance.

Is the place she is looking at for her only, or a shared tenancy with others? Depending on the type of tenancy the contract could leave you open to being responsible for more than just her in some circumstances, but sounds like her own space as you mention a flat.

You say she has already started, so where is she living now, and why the need to change?

How will she be covering her living costs? Will the grant money cover her basic living (rent, utilities, food) or will she be dependent on a job for some of these?

It sounds like she would be better off eoither staying where she is or finding a room to rent where there is no tenancy involved. It does give her a bit more risk that they can be told to leave with quite short notice, but that also applies her side as well and unlikely to need a guarantor and likely cheaper. 

theartfullodger

Depends on how guarantee is worded & in particular if the guarantee is enforceable (ie will get through a court - many are legally unenforceable..) see e.g. if England

https://england.shelter.org.uk/housing_advice/private_renting/guarantors_for_private_renters

New_in_the_fens

i was a guarantor for my daughter. I didn’t put it in place, but I did look at guarantor insurance at the time. Might be worth a look, but I have no idea how good it is, so do your due diligence. 

Tucosalamanca

She will hopefully be receiving a sizeable stipend, which should more than cover rent and expenses.

Has she spoken to the University, is post grad accommodation available?

On-the-coast

I’d do it for trusted family.  I’ve had to do it for my children - there really is no alternative nowadays - this is standard student rental stuff that virtually all landlords do - unlike in the past. 

If it’s single occupancy the risk is lower.  Otoh in the case of joint liability you could always hope the other guarantors are wealthier than you! 

I do wonder how people with no family or close friends cope in these circumstances. 

lincroft1710

It's fairly obvious that you cannot be a guarantor for her as you cannot meet the financial obligation if something goes wrong

silvercar

I would be a guarantor for a close family member.

horsewithnoname

I was guarantor for my partner; if it is just their rent and you trust them to pay, then it’s up to you. If it’s joint and you are potentially liable for random people, then don’t do it!