It is that time of year – student tenancies are in the news and up and down the country alert parents are saying “it is not fair – if my sons mate doesn’t pay his rent the landlord can come after me!”
Some landlords may feel that having 4 people guaranteeing a joint tenancy for 4 unrelated people is fine, after all, it does give them extra security, but it is a reality that in the lower courts, judges tend to look at the ‘fairness’ of an agreement, not just its legality, and a landlord trying to enforce a large debt against a guarantor in this situation may have difficulty obtaining a court order. I myself have had a judge asking me (in so many words),”do you think this is fair?”.
We have put together a guarantee document that limits an individual guarantor’s responsibility for non-payment of rent to the relevant tenants ‘share’ of the rent. Example – If Mrs Smith is a guarantor on a 4-person joint-tenancy with £10k pa rent, and Smith Junior can show he has paid £2,500 then Mrs Smith has no liability.
This ‘fairness’ can be a major selling point to tenants/guarantors, probably making obtaining a guarantee from parents easier and helping to convey to prospective tenants that the landlord will treat them fairly in other matters too.
I have added some further guidance notes in the comments section below and please feel free to ask further questions by posting comments.
If you would like to acquire a copy of the deed of guarantee referred to in this article then you may purchase a template by completing the form below. The price is £17.99 inclusive of VAT, the proceeds of which will be distributed as follows:-
£4.99 to Tenancy Services
At the request of the author “Chelseas Angels” childrens cancer charity will receive £5
David Price left the latest comment
Comments: 9013 | Readers: 507094
176 comments left in the past 30 days
KATHY MILLER left the latest comment
Comments: 115 | Readers: 4083
115 comments left in the past 30 days
Monty Bodkin left the latest comment
Comments: 93 | Readers: 6937
93 comments left in the past 30 days
Mark Alexander left the latest comment
Comments: 55 | Readers: 5263
55 comments left in the past 30 days
CazT left the latest comment
Comments: 42 | Readers: 2276
42 comments left in the past 30 days