Landlord told to act as guarantor in bizarre twist

In a strange situation, a letting agency has asked a landlord to be a guarantor for their own tenants.

This means should the tenants stop paying the rent it will be the landlord who covers their payments.

The PRS redress schemes make it clear in their conduct codes that guarantors are separate to landlords and tenants but don’t exclude a landlord from being the guarantor.

­­­Why don’t you be the guarantor?

Julie Ford, a mediator at PRS Mediation, says during a discussion with a landlord they revealed they were named as a guarantor for their own tenants.

After the tenants failed referencing checks and were unable to get their own guarantor. The agency then told the landlord that they could become the guarantor instead.

Ms Ford says: “This particular high street letting agent said to the landlord you’re a homeowner, you’ve got a great credit score why don’t you be the tenants’ guarantor?”

“You don’t pay your rent, you pay yourself it’s baffling.”

New way for letting agents to fill properties

In the viral video, Ms Ford suggested that using landlords as guarantors for their own tenants may be a new way for some lettings agencies to fill properties when tenants fail referencing and can’t provide a guarantor.

The viral video with all the bizarre details can be seen below.

@julie_fordtv

♬ original sound – Julie Ford TV