Being a guarantor for rent - how risky is this?

Marvel1

I wouldn't be one, you can trust them but not if their circumstances change.

secla

Never been a guarantor and never intend to be one, but do they really only look at income to decide if your able to become a guarantor and not expenditure ? You clearly arnt in the position the pay it so it seems a bit pointless signing to say you will cover it

GDB2222

secla said:

Never been a guarantor and never intend to be one, but do they really only look at income to decide if you’re able to become a guarantor and not expenditure ? You clearly arnt in the position the pay it so it seems a bit pointless signing to say you will cover it

The real point of the guarantee is that the tenant can’t just trash the property and do a moonlight flit. At least, not without leaving the guarantor in the doings. So, from the LL's perspective the guarantee implies good faith and fair behaviour on the part of the tenant. 

As a landlord, I’ve never claimed on a guarantee.

GDB2222

theartfullodger said:

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

Shelter doesn’t say much about enforceability. Do you have a better explanation of what might make an agreement unenforceable please? 

silvercar

secla said:

Never been a guarantor and never intend to be one, but do they really only look at income to decide if your able to become a guarantor and not expenditure ? You clearly arnt in the position the pay it so it seems a bit pointless signing to say you will cover it

In my limited experience, guarantor for offspring in student accommodation and subsequent rentals, they only look at income. I guess they assume you’ll re prioritise expenditure if you needed to, and/ or the one you are guaranteeing will be more responsible to protect the guarantor. 

It’s fine saying you will never be one, unless you have kids going to uni. The student accommodation can be iffy at best, you really wouldn’t want your offspring living in the dregs of the choices available to those without guarantors.

Olinda99

GDB2222 said:

theartfullodger said:

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

Shelter doesn’t say much about enforceability. Do you have a better explanation of what might make an agreement unenforceable please? 

one reaon would be if it was not signed as a deed

newsgroupmonkey_

Just as an aside, people may not realise that PhDs aren't like regular students.
There's usually a stipend (like a salary, but it's tax free) attached and guaranteed.

So the likelihood of her sister not paying her rent is highly unlikely.

silvercar

newsgroupmonkey_ said:

Just as an aside, people may not realise that PhDs aren't like regular students.
There's usually a stipend (like a salary, but it's tax free) attached and guaranteed.

So the likelihood of her sister not paying her rent is highly unlikely.

But is it enough to live on? Usually it would require some part time work eg lecturing / marking/ tutoring alongside in order to make ends meet. Also PhD’s can often take longer than the funded 3 years.

Emily_Joy

My suggestion would be either she rents via the university, it might be more expensive but she wouldn't need a guarantor or is looking for a house share, which would be half the price, or for a lodging which wouldn't need a guarantor. Not every landlord asks for a guarantor.

Emily_Joy

silvercar said:

newsgroupmonkey_ said:

Just as an aside, people may not realise that PhDs aren't like regular students.
There's usually a stipend (like a salary, but it's tax free) attached and guaranteed.

So the likelihood of her sister not paying her rent is highly unlikely.

But is it enough to live on? Usually it would require some part time work eg lecturing / marking/ tutoring alongside in order to make ends meet. Also PhD’s can often take longer than the funded 3 years.

It is more than enough to live on modestly - even in London. By "modestly" I mean not to shop in designer outlets spending hundreds on a new Radley bag every year; not to dine out out every other day;  houseshare with other PhD students; and look for savings to be made - e.g. use Santander cycles with year subscription instead of Tube to get to uni.