Can a Company be my tenant’s Guarantor?
9:45 AM, 6th February 2015, 11 years ago
7
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I have a tenant who has just moved into my property. When I agreed to let her have the house, she said that her boss would act as guarantor. I sent her boss the guarantor paperwork to sign and he has asked that the paperwork be addressed to his company and that his name should not appear on any documentation.
My question:
– Can a company act as guarantor?
– Will I be able to chase the company and directors if the tenant does not pay her rent?
Many thanks
Katrina
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Member Since October 2013 - Comments: 48
10:44 AM, 6th February 2015, About 11 years ago
I think the important question is if you need a guarantor, why did you let the tenant move in without one signed up and referenced?
Tenant is in now, you have no leverage in getting a guarantor to sign up be it personal or company.
Member Since July 2013 - Comments: 14
10:53 AM, 6th February 2015, About 11 years ago
Apart from the leverage point made by Sue P – which is well made – I would not want to have a company as guarantor unless I knew that the company was robust. You can check directors and accounts using the web and the Companies House website, but if for example the company is one that is registered by guarantee, the liability of the directors may be extremely limited. If it all goes wrong, then you would have to pursue the company, but if the company goes bankrupt then you would not get much back even if your legal claim was successful. At the very least I would require latest accounts (annual returns plus latest management accounts) to prove that the company was sound. Even then I would be dubious.
Member Since February 2014 - Comments: 50
11:00 AM, 6th February 2015, About 11 years ago
A Company can act as a Guarantor but you also need to get their credit status checked and referenced. Even if Agreement is in name of Company he will still require to sign on the Company’s behalf so his name will appear. I assume it is a small business and if this is the case ensure he is not supporting a clandestine relationship which can cause grief if things go wrong.
Member Since July 2013 - Comments: 305
1:07 PM, 6th February 2015, About 11 years ago
If this guy doesn’t want his name to appear,who’s name will be signing the letter and do they have the authority?
Comments: 51
11:48 PM, 8th February 2015, About 11 years ago
Well dodgy, I’d say. As first posted, a guarantor can’t sign AFTER a tenancy has been granted. ( Aside from having no leverage to insist.
Member Since February 2014 - Comments: 50
7:34 AM, 9th February 2015, About 11 years ago
A guarantor can sign an agreement at any time……if tenants circumstances change for example
Member Since March 2014 - Comments: 143 - Articles: 129
3:53 PM, 10th February 2015, About 11 years ago
A word of warning, companies go bust a lot more than individuals go bankrupt.
If it were me, I’d be wanting a personal guarantor with the means to pay should it come to it.