Arrears with guarantor

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    Arrears with guarantor

    If you've got a Tennant who has come into arrears and has no income or assets and the Tennant has a guarantor, what course of action will you take:

    1. Start eviction proceedings, when Tennant has been evicted take the guarantor to court for the debt.
    2. Do not start eviction proceedings and take the guarantor to court whilst Tennant is still in occupation.
    3. Any other courses of action (please detail)

    Thanks in advance for your help, if anyone has been in this situation please let me know how it panned out.

    #2
    1.
    Every time.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      But write calm polite letter to tenant detailing arrears, copy guarantor, also. Might prompt some payment.
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Go straight to the guarantor and get them onside.
        One of the main advantages of guarantors is they can put pressure on a tenant a landlord can't. (Loss of inheritance, gifts, family pressure, backhander etc)

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          #5
          Originally posted by Outlook View Post
          3. Any other courses of action (please detail)
          As soon as there are problems, talk to the guarantor.
          If the guarantor is on your side from the beginning it can prevent major arrears.

          If you do not tell the guarantor until there is significant debt, the guarantor is likely to be hostile and a judge may decide that you have not behaved in the best way (by allowing guarantor's debt to accumulate without notifying guarantor).

          Comment


            #6
            Thanks for your replies. What would you do if, after contacting the guarantor before starting eviction proceedings, the guarantors reply was:

            "Please evict the tenant and establish the full and final amount of debt, if you cannot recover this from the tenant then I will service the debt as is my duty as guarantor. I will not pay any monies until the full and final amount of debt is understood and the tenant is evicted in order to limit my future liabilities."

            Comment


              #7
              Take guarantor at his word - as long as you credit-checked them & they either have a PAYE job or own property.

              His point is probably that until tenant is evicted the total bill won't be known, and he wishes to limit his exposure by getting the little cheat out as soon as possible.

              I'd reply, thanking him for his kind response, confirm you will evict but if he has any way of encouraging tenant to leave early you'll gladly agree to an early surrender to further limit his losses.
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


                #8
                Keep that communication, the guarantor is agreeing to pay and that could be important if they have a change of heart.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment

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