Horrified at how many parents guarantee rental agreements without reading

We’re a bit like your parents, especially Mr Maggiethecat aka Captain Catastrophe but we do end up being sensible.

In, let’s say, a group of 5 you have one person defaulting, the other 4 tenants/guarantors would together be liable for the default amount, it wouldn’t rest on one guarantor. Not ideal to have to pay more but at least it’s not the entire owed amount borne by one person.

Blueshoes - I think you are mixing up using a company such as Housing Hands to be the guarantor (but you still co-sign) which a landlord can refuse & the insurance which you are not even allowed to tell the landlord you have.

only my share will pay the outstanding amount (Guarantor Insure won’t) & I chose to take it out to mitigate the risk. OMS were very helpful when we had issues. However as o said before, no one will cover the full amount.

We no longer pass the affordability checks for the area, I am not sure how they work that out when we have paid the same amount of rent for years and obviously a similar amount for the time before that. Never missed a payment, great references.
we have savings that equate to a years rent and that seems to pacify them, which is lucky as we don’t have a guarantor

I can also see this being an issue when dc go to uni. Another unexpected hurdle for generation rent to over come.

I agree with the posters about Guarantor Insurance. It is misleading and nothing like insurance. They are just a service at best but the guarantor is still liable.

Don't buy it. Doubt the landlords will accept it instead of a guarantee either which defeats the purpose.

They pay for costs of negotiation and courts (up to 10,000) but don't actually pay the outstanding debt.

Guarantor Insure are not currently taking on new clients.

Only My Share insures you for up to £10,000. Unlike GI they will pay the outstanding debt you are being chased for on your behalf then they will try & recover that debt through negotiation & the courts.

Guarantor Insure seemed to be more of a legal service but it was a few years ago that I read their terms.

So the insurance is basically a way of suing for the money for lower legal costs? That sounds like stress no one needs.

I had parents like you. Worrying about things that may never happen. Never signed anything. Made my life so hard. Even tried to talk me out of signing for my own DS’s Uni accommodation. I told them to get a life. Like the poster above letting agents vary and contracts vary and IME you sign for your own DC’s liability. Guarantor insurance exists too.

I spoke to DS's estate agent about my concerns and they re worded the contract so I was only guaranteeing his share. I was made to feel as if I was being difficult, both by the estate agent and also DS who had heart set on a specific flatshare. Apparently everyone else's parents just signed it

What insurance? I couldn't find anything.

Yeah dd has had a job change and in theory doesn’t earn enough at the momnet to rent the flat she is renting

so we will probably have to act as guarantors….well dh will, i can’t afford to rent her flat 😀

When dd rented in London she had to have a guarantor if she didn't earn more than 2.5 times the rent.

Is it income related? I was only asked for a guarantor when recently arrived back in the UK so had no rental history, no recent credit history and no probation at work. A couple years later and nobody cares.

Depending on whether you use Guarantor Insure or Only My Share that is what they do anyway.

GI assists in suing the defaulting student and their guarantor. They are more of a legal assistance service from my reading of their full terms and conditions. OMS will pay the debt for you upfront but then you are obliged to co-operate in them suing the defaulting student.

Plus neither offer insurance for the full potential amount.

But what’s the point of suing a person of straw?

Get the insurance if you are concerned about potential liability.

It's not just rent. It's utilities too. One of my son's flatmates didn't pay their part of the electricity bill so they came after him.

I don't think it is always clear that you are guaranteeing everyone's rent. I recently guaranteed the rent for my daughter and it was all done by AI and looked as if I was just guaranteeing her portion. I signed electronically. However, when they sent out the final contract it didn't make that clear and as all the tenants are joint and severally liable, I suspect the guarantors are too.

I know my DD's housemates though and the parents are all professionals and homeowners so hopefully the estate agent would go after them if their DC hadn't paid rent.

You do have the implied right to sue the defaulting student anyway, it's just it can be long and drawn out to get it to court.

To be honest I don’t think a lot have understanding about this or going guarantor for someone, it’s the exact same thing!
thinking someone won’t let you down and will pay their way is a nice thought but you never know what’s around the corner.
the one big question is, can you afford to pay if they don’t, and it should be in red letters across the top of all agreements

We are very reluctant guarantors for my daughter’s flat share in September. We have had drawn up a sub agreement between the guarantors basically agreeing that they will pay their child rent if the child is unable or leaves the accommodation (until a suitable replacement is found). Not sure how it would hold up if needed, but it makes up feel a little less anxious. We’ve also taken out an insurance policy in the event of non payment from one of the other students.

There is student guarantor insurance. It cost about £100 each year. We did this for both years DD was in a shared house at uni.

Definitely try to assert covering just your DC’s portion. I think most agents/landlords will allow this and if not then get guarantors’ insurance.

As the Op said, familiarise yourself with the contract. One Dd had a term abroad mid year and wanted to assign her room but the landlord resisted. We fought this as the contract allowed assignment (not subletting) with consent which can only be reasonably withheld. He tried some lame excuses but eventually backed down, saving us a few thousand quid but I realise that many people would have just sucked it up.

We successfully argued to just guarantee our daughters rent and since we were paying it then it was easy to do. Glad we did as someone moved out and then it wasn't us having to cough up for a person leaving uni.

Same for us.
weve rented for 18 years and still get asked for a guarantor. We are in our 40’s. Luckily we have a years worth in savings so that tends to shut them up. It is ridiculous though and makes me fearful about my kids doing uni and our future

I sent back (more than one) agreement with lots of redlines and change requests as it was far too onerous. I was simply told no changes would be made and if I didn’t want to sign I should look elsewhere.

there’s no choice and they know it