Guarantor for rent?

Narj

Narj

Narj

Soldato
Joined
19 Feb 2010
Posts
13,254
Location
London
Bit confused...

My sister wants to move but the letting agency are insisting on a guarantor if she wants to move to this new place, despite the fact that month's rent and deposit would be paid up front. She's asked me, but seeing as I have a mortgage of my own, I'm extremely unhappy about taking on any additional liability, no matter how unlikely it is that I'm chased.

I just have visions of her moving out, getting the deposit back (she wont' trash the place), and then 6 months later I get a demand for damages that they've suddenly "discovered"...

Could someone please shed some light on this and also their experiences if possible, I'd really appreciate it? I'm a great believer in not mixing money with family but the plea I'm getting is that none of her bf's family earn enough to be guarantor (must be > 30K apparently....) :confused:

Cheers!
 
I thought guarantor would only be used for paying rent? Deposit is for damage etc? Also they can't "discover" damage - when you leave a property, everything is signed off and you're done. Depends how much you trust your sister being able to pay rent / steady job etc.
 
Sounds a bit weird if she's working full time. Has she been out of work or something?

I thought guarantor was mainly to ensure that there'd be no missed rent payments in the event of unemployment, etc.
 
My parents were my guarontors when I was renting a place while at uni. As far as I know they have not been chashed up for any money as any damage cost was taken out of my security deposit and that was only around £50 which, if you had seen the state of the house, you would be very surprised by.
 
Goksly said:
Also they can't "discover" damage - when you leave a property, everything is signed off and you're done.
Click to expand...

Exactly.

The deposit is held in an independent scheme (the Deposit Protection Service) these days.

The landlord/letting agent has up to 14 days after you vacate in order to return your full deposit, or to lodge a dispute with the Deposit Protection Service (http://www.depositprotection.com/) to retain some or all of the deposit.
 
Just for rent payments. Why not ask your sister if she can get them to accept 3 months up front rent, that gives them a lot more to play with should she become a dodgy payer.
 
She should see if she can get her work to be the guarantor for her rent. I am a landlord and have had tenants do this in the past. Regarding the finding damages bit after she has moved out...
Firstly you should only be liable for say 25% of damages done - check this in the guarantor agreement contract. It maybe more, or less depending on the number of tenants. Secondly, at the end of the tenancy, someone will come round to look at the state of the property and the tenant agrees with this person how much of the deposit will be retained and given back. After the deposit has been returned the landlord cannot claim any more damages against the tenant or landlord. Hope this helps!
 
Morba said:
Just for rent payments. Why not ask your sister if she can get them to accept 3 months up front rent, that gives them a lot more to play with should she become a dodgy payer.
Click to expand...
Thats a lot of money up front? £500 rent becomes a one off payment of £2250 (deposit usually 6 weeks rent + 3 monthly payments)?
 
Goksly said:
Thats a lot of money up front? £500 rent becomes a one off payment of £2250 (deposit usually 6 weeks rent + 3 monthly payments)?
Click to expand...

Yep, but if it saves the need for a guarentor and she cannot get family to help, its an option.
 
PianoBasher said:
My sister wants to move but the letting agency are insisting on a guarantor if she wants to move to this new place, despite the fact that month's rent and deposit would be paid up front.
Click to expand...

Er well, that's completely standard.

It's most likely the reason why the agent is asking for a guarantor is because she's failed credit referencing i.e. she doesn't earn enough money for the place she's chosen.
 
Lysander said:
Er well, that's completely standard.

It's most likely the reason why the agent is asking for a guarantor is because she's failed credit referencing i.e. she doesn't earn enough money for the place she's chosen.
Click to expand...

More to the point, at the moment, most letting agents and homeowners can afford to be picky, and are demanding guarantors for all sorts of things that they never used to.

We've just done what the OP is questioning for my brother in law and his fiancée, but whether you choose to do it or not is up to you. In theory, you are liable for damage etc, but only to the same extent as the tenant, so giving the deposit back then claiming for damage later isn't really an issue.
 
Morba said:
Just for rent payments. Why not ask your sister if she can get them to accept 3 months up front rent, that gives them a lot more to play with should she become a dodgy payer.
Click to expand...

Thanks all,

As for the above, good point! I'll suggest that.

I already said I want to go over the documentation before considering it. I don't think guaranteeing rent would be a problem, her and her bf are unlikely to not pay. I'm a bit worried about how my mortgage lender would react to the extra liability though, seeing as they ask about liabilities on application.

Damages is a bit different though, only her bf works as she's at home with the baby. Actually that's another point... I'm aware of the destructive capabilities of a baby so a bit nervous what with carpets etc.

I'd have thought that the landlord should have their own buildings/contents insurance should a real disaster happen. :confused:

Maybe I'm making a mountain out of a molehill, but I've been stung badly by friends/family with money matters in the past and don't want a repeat performance. You can never predict what's going to happen.
 
landlord will have building insurance, unlikely that they will have contents also, thats for the tenant to sort
 
Morba said:
landlord will have building insurance, unlikely that they will have contents also, thats for the tenant to sort
Click to expand...

I thought that perhaps they might have contents for any appliances, fittings, furnishings provided... But if it's totally unfurnished, then fair enough :)
 
PianoBasher said:
I thought that perhaps they might have contents for any appliances, fittings, furnishings provided... But if it's totally unfurnished, then fair enough :)
Click to expand...

The landlord has to insure his OWN possessions, should there be any. But if the tenant causes damage due to negligence, the tenant has to pay up.
 
There must have been big changes in the last 2 years.. i rented a brand new top floor flat in Sheffield in 2007 with nothing but £100 down as a deposit while it was still been finished and then paid the rest of the deposit when i moved in (so a total months rent as a deposit).. and then the first months rent.. and that was it, the guy didn't even know me.

My girlfriend who works in letting now says that a lot of tenants that come to her nearly all end up having to have guarantors, the deposit is a months rent + £100, then they have to pay the first months rent, then there is a flat fee of £100 for administration AND THEN £100 per person referencing! it must be becoming a really expensive affair to rent property.

When she first told me i was really surprised! and there letting 15 properties a week lol!
 
Last edited:
MaX_PoWah said:
There must have been big changes in the last 2 years.. i rented a brand new top floor flat in Sheffield in 2007 with nothing but £100 down as a deposit while it was still been finished and then paid the rest of the deposit when i moved in (so a total months rent as a deposit).. and then the first months rent.. and that was it, the guy didn't even know me.
Click to expand...

I think that the sudden increase in people renting properties to use as cannabis farms might have something to do with it. I personally know 2 people who rent properties out that have had this happen to them within the last 3 months! :eek: The thing with using an agency is that they're responsible for making sure the place is left in the same state it was before when the last tenants moved in - hence the crazy amount of checks/demands, I reckon.
 
You must log in or register to reply here.
Back
Top Bottom