Student Rent Guarantor Question

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

    Student Rent Guarantor Question

    Hi, My son was sharing with 2 other students during the past year. One of the students comes from Dubai and needed a guarantor in the uk which i agreed to with the understanding this would be changed (not relevant to my question but full disclosure). The student was unable to come to the UK for the whole year and unknown to me did not pay any rent for the last 2 terms. On 10 August at 11pm i received an email telling me i have to pay the rent by 13 August. This seems a very short amount of time to look into this and work out a sensible way out. Since that email the student in Dubai has agreed to pay the rent in installments over the next 3 months and the other 2 students (including my son) will give up their deposit to help fund the payments.

    The property manager won't answer the phone to me to discuss this, seems only capable of returning the odd text to my son and has not responded to the offer made by the student owning the rent.

    I am hoping today that she will see sense and have a phone call with me to discuss this. However what would be her next step and how long does this process possibly run for. You can argue about the rights and wrongs of the situation but we are where we are. My view is that the student has agreed to pay the money back, admittedly its not all in one go but the offer is there on the table - i would have thought that given the situation we are all finding ourselves in this seems the most logical way out of this situation? If the property manager chooses to go down the legal route what is the process and how long does it take?

    Also how would it be seen legally that the student has provided a way to clear his debt?

    Thanks for taking the time to read this.

    #2
    Quite possible that guarantor agreement is unenforceable. In your shoes I'd cease communication with agent , carefully re-read agreement and advice on Shelter (the experts) info on guarantees on their website. https://england.shelter.org.uk/housi...rivate_renters

    When a guarantor agreement may be invalid

    Guarantors should be given copies of both the tenancy agreement and the guarantor agreement before they agree to anything.

    All liabilities and the risks involved should be explained to them before they agree to act as your guarantor.

    A debt adviser can check if the guarantor agreement is likely to be enforceable. The agreement may be invalid if your guarantor was forced, pressured or misled into signing.

    & also
    https://forums.landlordzone.co.uk/fo...ncy-guarantees

    Agents unwillingness to communicate smacks that they know they can't enforce.

    Look forward to any news of developments

    Good luck.
    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


      #3
      The person owed money (or their agent) should issue a letter before action, which is sent to all the parties who they claim owe money, detailing the amount and that they will, if it is not paid, may take legal action.
      There's a load of other stuff that should be included, but that's essentially it.
      It's possible that the email is that "letter".

      If the agreement with the landlord was "joint and several", all of the tenants (and potentially all of their guarantors) should be liable for all of the money owed.

      If the deadline passes and no payment is made, the person sending the letter can then commence a legal claim for the money owed.
      That can happen immediately the deadline has expired.

      Given that someone has offered to pay the debt, legal action is pointless and, even if the claim was made, should go nowhere (because of the offer).

      Most guarantor agreements aren't enforceable if you decline to be held to their terms, so that's another option to explore if the agent persists.
      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


        #4
        Basically they are/were hoping that you will/would just pay them the rent owing in a lump sum, without querying anything.

        The short timescale also indicates they were pushing things and hoping you would just pay, without thinking/checking..

        Someone paying a lump sum is easier for them than recovering what's owed in instalments.
        Especially installments from someone who is no longer in the country so it would difficult to enforce any repayment agreement with them if they don't stick to it.

        Your querying things has scuppered their hope, and as the others have said they probably know that they can't enforce the guarantor agreement anyway.
        Check out Artful's suggestions/links.

        Which will be why they are not communicating with you anymore.
        They have fired their blank ammo to try and get an easy payment from you and it didn't work, they know that they can't chase you legally, so they have nothing further to communicate with you.

        PS. Even if they could/can enforce the guarantor agreement, if an offer to pay has been made then it probably absolves any responsibility as guarantor anyway.
        Any agreed repayment plan is not rent, it's a debt repayment so would not be covered by a rent guarantee. Which may be why they have not responded to her offer, they're waiting to see if you will fall for it and pay them.

        Comment


          #5
          Thanks for the comments thats been very helpful. I'll let you know what happens as it might help someone else in the future.

          Comment


            #6
            for completeness i thought i would post the email that was sent to me i have removed names and addresses. As i say since this a plan has been provided to pay all monies in full in the next 3 months.

            Good Evening Mr ******,
            I Hope this email finds you well?
            I hope the below matter can be resolved as a matter of urgency!

            You may not be aware but unfortunately **** is still currently as of today in £4,557.66 of rent arrears for none payment of rent at ****, as you are **** Legally binding Guarantor this sum of monies unless resolved will need to be recovered directly from yourself, may i please suggest that you make contact with **** encouraging him to transfer the balance in full immediately to avoid further actions.
            Please further be advised I have attempted several times to sort this out with **** directly.

            He has made no attempt to clear the over due amount of
            £4,557.66, and has disappointingly only tried to offer a settlement figure, I would like to take this opportunity to clarify that a settlement figure is non-negotiable and the full outstanding amount needs to be paid by 13th August at the latest to avoid this matter being taken to a claims court. Further to this, as the tenancy is joint and severally liable, all the other tenants deposits are in jeopardy and they will not be receiving their deposits back until the arrears is paid in full, as i'm sure you aware regardless of excuses and circumstances the legally binding contract has being broken which in a court of law is not taken lightly.

            I look forward to receiving your response advising when payment will be made, either from yourself as **** Guarantor or directly from ***** himself.

            Comment


              #7
              That's what I call 'politely threatening' nonsense. (or p*ss and wind if you prefer something a bit stronger).

              There is no real substance at all, just vague 'you'll be sorry' mumbling, bluster, and empty threats.
              Full of 'hopes', 'if's', and 'suggestions' - they even ask 'please'.

              Like the repeated use of 'legally binding'.
              When someone repeats a phrase like that it's often because they are not sure it's correct, (or know it isn't), and are hoping that repetition will make you believe it.

              The 13th August date is meaningless other than saying that they may take matters further after that.
              Which also means they may not, they may not be able to.

              They cannot unilaterally decide not to pay back deposits, only the deposit scheme adjudicators can decide if deposits should be used to cover arrears. And then usually only with the agreement of the tenants to use deposits to cover rent arrears.
              (The purpose of a tenancy deposit is to cover damage to the property not unpaid rent, although it can be used to cover unpaid rent).
              Of course if they haven't put the deposits in an approved scheme and issued the prescribed information correctly then they could be in for a big shock.

              Comment


                #8
                While I think the email is basically an attempt to get you to put some pressure on the tenant who hasn't paid.

                But the landlord's most productive route would be to claim the rent from the tenants, all of whom are liable for all of the rent.
                They can sue the guarantor(s) at the same time or afterwards.

                Rent is a very easy debt to prove, it's either owed or it isn't and it's either been paid or it hasn't.
                There's rarely a defence against it being owed.

                And student debt is often underwritten by parents (albeit unofficially).
                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


                  #9
                  Heres the latest email to the lad that hasn't paid.

                  Good Morning ****,

                  As I am sure you are aware we are in the Schooling 6 weeks holidays, this has resulted in holiday leave from the office to facilitate the necessary child care required during this time so our response times are restricted.

                  We have been left with no choice but to make contact with ****’s father as the legally binding guarantor given the unwillingness & failure to make Payment for the Full outstanding balance.

                  We have spoken with & taken legal advice from Solicitors, Letting agent & Deposits schemes who have all assured that there is no doubt yourself & now ***’s father are responsible & liable for the full amount, it is reassuring that you have also accepted the full amount is to be repaid.

                  Your previous actions & numerous excuses to avoid paying the balance & attempts to negotiate & reduce the amount has filled us with great doubt & discouraged from any payment plan options, your proposed payment plan also includes the deposits of all the other joint and severally liable tenants, whilst this is a legally joint tenancy I have great doubts that they will wish to be penalised of their deposits to facilitate & compensate you financial needs.

                  My Suggestion to yourself would be to make contact with each of the other tenants and have them email confirmation to myself confirming in writing they are happy to surrender their deposits to assist you in paying the amount in full, once we have received all individual confirmations we can then hopefully move forward with receiving the remains balance ASAP.

                  Failure to meet the requirements of this will leave us with no option other than to instruct solicitors to proceed with legal action against yourself & Mr ****.

                  Many thank
                  ****

                  Comment


                    #10
                    for the record as we are not stupid we have all given the agreement for him to use the deposits and pay us back separately any way we just didn't tell her. This to me is a jibbering mess but i'm no legal person.

                    Comment


                      #11
                      Reply politely thanking them for their kind communication and requesting a copy of solicitors advice.

                      Suspect good chance there is none, or if any it won't be definite.

                      Sending an email for them is cheap and easy.
                      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


                        #12
                        Originally posted by MJ23 View Post
                        We have spoken with & taken legal advice from Solicitors, Letting agent & Deposits schemes who have all assured that there is no doubt yourself & now ***’s father are responsible & liable for the full amount, it is reassuring that you have also accepted the full amount is to be repaid.
                        This is completely wrong from a legal point of view, so it's unlikely to be the outcome of actual legal advice.

                        The landlord should be advised to recover the debt from the tenants collectively and, if I were the landlord, that's what I would be doing.
                        Once the judgement goes against the tenants (as it would), the amount owed by the tenant in the UAE could be sought from the guarantor.
                        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


                          #13
                          Why did you agree to an unlimited guarantor agreement?

                          Comment


                            #14
                            The management company have now seen sense and have accepted the lads payment plan so assuming he pays up each month problem solved! Thanks very much for all of your help.

                            Comment


                              #15
                              Good to know.
                              Thanks for updating us.
                              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

                              Latest Activity

                              Collapse

                              Working...
                              X