Agony Agent is here to help!
23rd December 2019
Q: What responsibilities does a guarantor have as far as my tenants are concerned?
A: A guarantor will more than likely be a close friend or family member. So, to start with they will have a personal interest in the people in the property, along with any financial implications within their role as guarantor.
A guarantor would be responsible for any and all short comings or non-payments with the rent and damages to the property. So, if your tenants fail to pay, you are fully within your rights to approach the guarantor and furthermore take legal action against them. Now, when they signed the tenancy agreement, or a Guarantor Indemnity, there should have been wording to cover that either the guarantor guarantees the rent proportion for the tenant that s/he is acting for; or the guarantor will guarantee the total rental. The wording is a little more detailed than that, but the nuts and bolts are simply one person’s rent share or the complete rent share.
Should you be renting your property out to students, we would recommend one guarantor per student.
To reiterate, the guarantor has agreed to accept the liabilities on behalf of the tenant/s. Basically, in the event of a tenant being unable to meet their obligations under the Tenancy Agreement, if it is for overdue rent, damage to the property or whatever, the guarantor is legally bound to accept the liabilities on behalf of the tenant. To ensure this is enforceable, MAKE SURE you have the correct wording in place at the start.
If you need any other lettings guidance, please do get in touch.