Guarantors and joint tenancies

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    Guarantors and joint tenancies

    The sole tenant of a one-bedroom house has expressed an interest in moving to another of my properties (ie larger) in order to share with her boyfriend, which would naturally involve a new tenancy agreement. Currently her parents are guarantors.

    If she signs a new (joint) agreement with the boyfriend, is there any way of having her parents serve as guarantor again but only covering her 'half'? I suspect that they wouldn't be willing to serve as guarantor for the boyfriend as well (I don't think I would be, in theor shoes!); however I'm unaware of any way of doing this.

    I'd certainly like to keep this tenant as she's been very good - I think if I turn her down she'll probably quit and go elsewhere eventually. I've got various other options - eg maybe the bf's salary will be adequate / maybe his parents could be guarantors / maybe I think she's reliable enough not to need one etc etc - but I'd like to know the answer to the scenario I suggested as one possible solution!

    #2
    I think that if she and her boyfriend are joint tenants, then either or both are responsible for all of the rent. If there is a problem and arrears build up then you could pursue either or both and if that failed you would look to the Guarantor to settle the total debt - so I don't think you could have a Guarantor responsible for just one of the two joint tenants. Even if you could have this, it wouldn't be satisfactory. The Guarantor(s) need to be good for all of the debt.

    Comment


      #3
      This might be a silly question but couldnt you ajust a standard guarentor form to state they are only reponsable for 50% of any rent not paid

      Comment


        #4
        The boyfriend seems to be an unknown quantity but for the landlord protection if it is a joint tenancy then the boyfriend should satisfy financial checks and if necessary guarantors provided for his 50% of a joint AST.

        Surely the larger flat is not twice the rent of the current one and thus justifying the currrent guarantor reduction to be 50%.

        The guarantors of one of my tenants definitely wanted to retain the benefit of the property for their son and continue to guarantee the full rent as the girlfriend relationship was quite a new one.

        As landlord's we were not happy with a casual live in arrangement and so both the guarantor, tenant and landlord agreed that the girlfriend could live at the property under a written licence.

        The licence was prepared by the guarantor's solicitor at the tenant's cost and (after corrections on confusion of the names and designation of the parties to the agreement!) was agreed by the landlord.

        As is not uncommon these days the relationship broke up after a relatively short time because the girlfriend was jealous of the boyfriends relationship with his Xbox. After quitting the property she broke in, causing substantial damage, and took away the Xbox in retribution. Although a police incident report number was issued it was noted as a domestic issue and no crime was recorded. The tenant's insurers were not prepared to make a payout and the guarantor paid for the damage caused to the property.

        Maybe it would be worthwhile talking through these potential issues with your current, fully guaranteed, tenant
        Vic - wicked landlord
        Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
        Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

        Comment


          #5
          A guarantor guarantees not only "the rent" but "other liabilities of the tenant[s]" and it unwise to muck about with a document that if you need to implement at some stage could prove to be worthless. It's to do with "joint & several" liability.
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Paul I think both Eric and myself appreciate the dangers of 'mucking around ' with the guarantor terms of a joint tenancy ageement where the financial responsibilities as far as the landlord are concerned . It is quite clear that the standard arrangements ensure that full deficiency of rent or damages can be recovered from any one tenant or the guarantors of any one tenant.

            It is also obvious that the guarantor arrangement for the original tenancy will become invalid once a new tenancy is granted.

            In the case of the License I mentioned the landlord gave the consent for the license but the guarantors of the original agreement confirmed they would act as guarantors for the new Licensed arrangment also.

            It's interesting to note that our original tenant asked that the Licensee contribute a monthly payment of more than half of the actual rent of the property.

            I remain unsure as to the repossession procedures by the tenant if he/she wished to end the Licence and the Licensee would not leave. Would a Court Order be needed and would it be fast tracked?
            Vic - wicked landlord
            Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
            Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

            Comment


              #7
              Sorted!

              Thanks for the replies. As it happens, my tenant has now told me that she does want to take on the new tenancy, but wants to take do so on in her name only. So no probs with Mummy and Daddy being guarantors again! Good outcome.

              Comment


                #8
                SNAP!!! the guarantors for the daughter probably had the same concerns for her as did the guarantors for the son in my case.

                A good conclusion.

                Not withstanding I still think there is a borderline between the right of the tenant to enjoy the amenity of the rented the property and the creation of a sub-tenancy if the landlord is aware of the boyfriend moving in (and probably contributing to the rent)

                I feel that there could be some complications if the tenant left and the boyfriend remained (or re entered the property of the tenant had vacated it)

                My feeling is that a licence clarifies the position.
                Vic - wicked landlord
                Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
                Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

                Comment


                  #9
                  Originally posted by Ericthelobster View Post
                  Thanks for the replies. As it happens, my tenant has now told me that she does want to take on the new tenancy, but wants to take do so on in her name only. So no probs with Mummy and Daddy being guarantors again! Good outcome.
                  It's better to have a single guarantor rather than two or more as you have an apportionment problem if you are not careful. It's a bit like insuring the same risk with different insurers.
                  The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                  Comment

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