Is having a guarantor a failsafe?
11:00 AM, 11th January 2022, 4 years ago
7
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Bearing in mind all the issues that can arise, even things as simple as a rent increase meaning it becomes invalid to enforce on the guarantor (never mind rent arrears and damage!), does anyone do their own checking and document issuing for guarantor agreements between parties or do you use a company/other professionals?
Please, can I also ask what are the biggest issues when trying to enforce one as a result of a tenant defaulting in some way?
Many thanks
DSR
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Member Since January 2015 - Comments: 1450 - Articles: 1
12:25 PM, 11th January 2022, About 4 years ago
My guarantor agreement includes any or all rent increases and for all future renewals of the tenant.
Biggest issue is finding the guarantor if the tenancy is renewed several times and you are relying on the initial guarantor and the tenant no longer wants them as guarantor. But see para above.
Member Since October 2013 - Comments: 1311 - Articles: 10
12:27 PM, 11th January 2022, About 4 years ago
Why do you think a Deed of Guarantee becomes invalid if there is a rent increase? You can have wording within the Guarantee that allows for rent increases (within the limits agreed with the Guarantor).
Member Since January 2022 - Comments: 97
1:22 PM, 11th January 2022, About 4 years ago
I had a tenant who had a guarantor, her uncle, lovely honourable chap, he passed on and she did not inform me.
End of tenancy the property was a real mess, roughly £2,500 to get close to back to move in standard, no guarantor, court awarded half, tenant defaulted and took the CCJ.
Moral of the story even a guarantor is not guaranteed 🙁
Member Since May 2014 - Comments: 201
1:32 PM, 11th January 2022, About 4 years ago
Would it not have been possible to claim off the estate?
Member Since September 2018 - Comments: 3538 - Articles: 5
5:26 PM, 11th January 2022, About 4 years ago
Reply to the comment left by Robert Mellors at 11/01/2022 – 12:27
what I mean is, with so many things to think about (like making sure the working is correct given the example of a rent increase), is a rent guarantee really as easy as that to set up yourself? I’ve read stories on here that the courts regard such things in disregard and try and get the guarantor out of any liability if they can. So do you do this yourself or pay someone else to reference the possible guarantor and then go through the process of this put in place? All seems like a lot of trouble and if the tenant/guarantor’s circumstances changes and they don’t tell you there is not a lot you can do without potentially throwing more money to try and get resolution????
Member Since September 2018 - Comments: 3538 - Articles: 5
5:28 PM, 11th January 2022, About 4 years ago
Reply to the comment left by Judith Wordsworth at 11/01/2022 – 12:25
so in that scenario – if you still need a guarantor but the tenant doesn’t want them, (or indeed the guarantor wants to stop themselves) then what?? You have a tenant in situ with no guarantor at all?
Member Since June 2021 - Comments: 12
10:12 AM, 15th January 2022, About 4 years ago
I always find that you can’t even depend on a guarantor because if the tenant is bad, then generally the guarantor will be bad as well. It at least acts as a psychological barrier to default, assuming that you’ve got a moral individual.