Can anyone help with tenant guarantor agreement please? Quick question

[bialystockandbloom]

I'm renting out a property, and for the first time am doing it myself rather than going through an agent. One of the prospective tenants needs a guarantor, which is fine. I have the tenancy agreement and supplementary guarantor agreement in place.

But do I need to add the name of the guarantor to the tenancy agreement itself? i.e. under the section naming the Parties, does the guarantor need to be listed as well as the Tenants?

Any help appreciated! TIA.

[wowfudge]

Yes - you need to be able to demonstrate the guarantor knows what terms the AST contains, so the date the rent is due, the rent amount and how long the AST is for. If they don't sign the AST they could claim the guarantor agreement is an unfair contract as they don't know what they are being asked to agree to guarantee.

The signatures on all documents should also be witnessed by an independent party or parties who is/are not related to any of the parties. The witness is simply confirming the signature is that of the person signing, nothing more.

As a safeguard I would have all parties - including you - initial every page of the AST and you and the guarantor do the same for the GA. Then nobody can claim they don't know what it contains or that pages have been added or changed.

Ime the GAs I have seen have been a page or two appended to the AST.

[bialystockandbloom]

Thanks wowfudge. I have got the GA appendix drawn up, as a supplement to the AST, but I'm struggling with how/where to include the guarantor bit in the AST itself, iyswim.

Very small detail which I can't find answered anywhere, and don't really want to pay a solicitor to answer a 2 minute question!

[wowfudge]

If you are unsure you can always put a line in above the signature space for the guarantor 'I acknowledge that I have received and read a copy of this AST and the attached GA and that I understand the content thereof' or something to that effect.

Don't forget that you, the tenant and the guarantor will all need fully executed (signed by all parties with signatures dated) copies of the documents for your records. These need to be originals, not photocopies or scanned copies. So you'll need three copies.

[bialystockandbloom]

Thank you so much wow for your help. I think I kind of have it sorted now…

[wowfudge]

If you are asking them to confirm they have read and understood then I would email them the docs to read ahead of the appointment where they sign - if they have any questions you can also clarify them.

Like the username btw.

[BigPawsBrown]

Are they guaranteeing the rent alone or the terms? Ie they will pay if your tenant doesn't pay, but if your tenant burns your house down, or messes it up, will they perform the repairing covenant for you?

[bialystockandbloom]

Yes I am emailing them the AST and GA in advance.

And yes, the GA covers all losses incurred to me through non-observance of the AST: "The Guarantor shall pay and make good to the Landlord on demand all reasonable losses and expenses of the Landlord incurred as a result of default by the Tenant in the performance or observance of the Tenant's covenants under the Tenancy Agreement."

[BigPawsBrown]

You don't want on demand or reasonable in there