It’s often a good idea to take a guarantee for a tenant – this is commonly done for example for student tenants and for company lets.
The old Landlord Law Guarantees
On our old Landlord Law site there were two options – using a tenancy agreement with a guarantee included or using the separate guarantee deed.
Although if your guarantor was worried about their liability we did also have a draft ‘guarantor friendly’ version of the guarantee. Most landlords, however, were unhappy about using this as they could end up out of pocket if the person responsible for damage could not be ascertained.
However if you trusted the tenant and guarantor and maybe also if the guarantor flatly refused to sign the standard form, it was useful to have the guarantor friendly option available.
This website Guarantees
On this site, there are now even more options for you:
- All of our tenancy agreement forms now include an option to have a guarantor and guarantee clauses included in the tenancy agreement.
- There is as before the option to create a separate guarantee deed using the Document Generator
- When creating the document generator guarantee you can now opt for the ‘guarantor friendly’ version if you wish.
If there is no guarantor available:
Sometimes you will have a tenant who you would be willing to take a chance on but who has no-one suitable to be a guarantor.
Or maybe they are a foreign student and all potential guarantors live overseas – which you won’t want, as it is very difficult to bring a money claim against someone who is not resident in England and Wales.
In that case there is always the option of using a guarantee company. The only one we are aware of just now is Housing Hand
, but no doubt there are others.
Members will find the Landlord Law Guarantees here