New Tenant - Guarantor reliability?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • alexmclaren
    replied
    That's right, it's the rent insurance I haven't got. But then even if I did I don't think it would be covered anyway for this situation.

    Claymore, regarding the tenant, he has actually exchanged contracts literally the Friday before the lockdown, so he's all ready to go but he's now stuck there. He's in there until the end of May but it could well be that he's stuck in my flat longer than that.

    I've decided to do nothing at the moment and just see how things pan out in the next couple of weeks at least. Needless to say the agent is chomping at the bit to get my to sign these other tenants up.

    Leave a comment:


  • DPT57
    replied
    If your tenant isn't even meant to be moving out till the end of May then I think you've been a little premature in advertising the property. Anything can (and probably now will) happen to prevent this either with your existing tenant or the prospective.

    Leave a comment:


  • Lawcruncher
    replied
    Originally posted by Claymore View Post

    Wouldn't this create other problems? If a Guarantor was added to the tenancy agreement, that would give him/her rights to actually live at the property etc?
    I think the problem is not so much that, but that if the occupying tenant's circumstances change and he needs state benefits he may be denied them on the basis that the non-occupying tenant can afford the rent. Whilst the non-occupying tenant will remain liable a source for paying the rent is cut off which rather goes against the whole idea of a guarantee.

    Leave a comment:


  • amazondean
    replied
    Originally posted by mariner View Post
    OP, why state you have not got required LL insurance if you have?
    I think the OP means he hasn't got guaranteed rent insurance!

    Leave a comment:


  • mariner
    replied
    OP, why state you have not got required LL insurance if you have?

    Leave a comment:


  • MdeB
    replied
    Originally posted by Claymore View Post

    Wouldn't this create other problems? If a Guarantor was added to the tenancy agreement, that would give him/her rights to actually live at the property etc?
    Right: yes.
    Obligation: no.
    And T could exclude them and that would be between T and G and not a problem of the LL.

    If G is a homeowner, then why would they want to live there?

    It comes down to the relationship between T and G.

    Leave a comment:


  • jpkeates
    replied
    Originally posted by Claymore View Post
    Wouldn't this create other problems? If a Guarantor was added to the tenancy agreement, that would give him/her rights to actually live at the property etc?
    If thats actually a problem, yes it would give them that right.
    I think it's only a solution is the guarantor is helping the tenant to pay the rent - because that's better than them being a guarantor, which seems to me to be an agreement what's next to impossible to enforce if the guarantor is really determined not to pay anything.

    Leave a comment:


  • Claymore
    replied
    Originally posted by alexmclaren View Post
    Hi,

    My tenant has just handed his notice in and will be moving out at the end of May.
    Do you know the reason why your tenant is moving out? If your tenant is buying a property and hasn't actually exchanged contracts yet, things might not go to plan. I have read a few pieces on-line indicating that Solicitors are being advised to halt Exchanges for the moment. To me it doesn't sound enforceable legally yet, but who knows what is round the corner at the moment.

    I have a tenant who believes she will Exchange and Complete on 6th April (there is no chain in her purchase and her family are taking care of her removals) - if it does happen, frustrating for me as the place will sit empty. I am respecting the 'don't go out unless absolutely essential'.

    Leave a comment:


  • Claymore
    replied
    Originally posted by jpkeates View Post

    I think that guarantors are only useful to apply pressure on tenants to pay, unless the tenants are very young (including students).
    If the reality is that the guarantors are really helping out in paying the rent, it might be better to add them as tenants.
    Wouldn't this create other problems? If a Guarantor was added to the tenancy agreement, that would give him/her rights to actually live at the property etc?

    Leave a comment:


  • MdeB
    replied
    If the "guarantor" is a family member, then add them as a joint tenant.

    Then no guarantor agreement (of unknown legal standing) is required.

    You can pursue them in the same way as any other tenant should rent not be paid.

    Leave a comment:


  • jpkeates
    replied
    There's a guarantor agreement here - https://forums.landlordzone.co.uk/fo...or-discussion=
    And there's a sticky thread about it and the issues arising on the main page of this forum.

    I think that guarantors are only useful to apply pressure on tenants to pay, unless the tenants are very young (including students).
    If the reality is that the guarantors are really helping out in paying the rent, it might be better to add them as tenants.

    When deciding whether to rent to people, I don't consider the existence of a guarantor as any kind of positive.

    Leave a comment:


  • Snorkerz
    replied
    Originally posted by alexmclaren View Post
    from what you're saying then, it sounds like it may be a legal nightmare if they don't pay. I was under the nieve impression that if there was a guarantor then collecting money in the event the tenants don't pay would be very straightforward and would just go straight into my account in place of the tenants money. So how do you make sure you get a good guarantor agreement? Surely there must be a really good one that can just be duplicated?!
    No, the problems (legally) are multi-fold. Firstly, the courts often feel that a guarantee with an unlimited length and/or value is unfair, as the 'contract' can not be ended by the guarantor, it is the tenant or landlord with that control.

    Also, a 'contract' needs a service to be provided in exchange for something (usually money) - but in this instance you are not giving the guarantor anything for his services, you are giving the tenant the benefit. This can be got round by using a 'deed' instead of a 'contract', but the wording has to be so 'right'.

    Ensure the guarantor has plenty of time to read not just the guarantee document but also the tenancy agreement (as this is what the liability is based on). The deed must include the words "executed as a deed" and it needs to be witnessed.

    Leave a comment:


  • alexmclaren
    replied
    Yes Artfull, I do have LL insurance.

    AmazonDean, my rent is £1200pcm so 2 people living off that isn't a huge amount after bills.

    So Snorkerz, from what you're saying then, it sounds like it may be a legal nightmare if they don't pay. I was under the nieve impression that if there was a guarantor then collecting money in the event the tenants don't pay would be very straightforward and would just go straight into my account in place of the tenants money. So how do you make sure you get a good guarantor agreement? Surely there must be a really good one that can just be duplicated?!

    Leave a comment:


  • Snorkerz
    replied
    How successful you are getting money from the guarantor depends very much on the guarantee agreement you have in place. Many are not worth the paper they are written on. Then, of course, as amazondean says, you have to take it through our (non-existent) court system.

    There is a free guarantor form available here, but I can not vouch for it's validity https://www.landlordzone.co.uk/docum...-c3c462bd-814b

    Leave a comment:


  • theartfullodger
    replied
    Originally posted by alexmclaren View Post
    ...An extra issue is that I have no landlord insurance and I don't think I can get any at the moment.

    ...
    Hope you're just referring to rent guarantee insurance! You MUST have cover for buildings etc etc as a landlord or if the place burns down you'll be liable, no payout, and tenants suing you!

    Leave a comment:

Latest Activity

Collapse

Working...
X