Would you be guarantor in this situation?

[Blanketfull]

DS1, 25yo employed and doing well now after a slowish start. Also has been a spender, although has some savings now.

Split up with GF of 2 years, 8 months ago. She moved away to beautiful place 6.5 hours from here.

They're now back together and for the last 3 months he's been driving there every time he has a few days off. She's also been back here, but doesn't want to move back permanently.

She has accomodation with her job, and he can't stay there, so he books Airbnb when he goes.

He wants to move there and is hoping to find work with the large national organisation he works for, who do have offices locally.

Initially they plan to rent a room in an HMO (£850pm 😮) with a view to buying something if everything goes well. This is a plan I largely support. I'll hate him being so far away, but I can see the appeal, perhaps some concerns about the previous break up and for that reason the renting, as cheaply as possible initially make sense, ultimately I want him to do what makes him happy.

Anyway the HMO want a guarantor. I won't sign anything until I've seen the paperwork but they're telling me worst case I'd be up for 4 month's rent. That's a lot of money but I could find it without having to change my lifestyle.

He accepts he can't go until he's secured at least equivalent work to his current job, but she wants to move in straight away. She's paying £500pm for the room where she works, and he has to pay for accomodation when he visits, so it makes some sense.

But, I'm not completely comfortable paying for her accomodation before he's moved in.

It's not entirely clear why her parents haven't been asked, I don't know anything of their affairs, but outwardly their situation looks very similar to mine.

He says they have more than enough cash to pay the sum in advance, but that's not an option, and I'm not sure I'd recommend it if it was.

Also, for those in the know and before I have the paperwork, does the four months rent cap seem correct?

They don’t all require a guarantor. Not sure where you’ve heard that from? Guarantors are only usually needed if there’s some suggestion that you can’t pay the rent- most commonly students who obviously aren’t FT employed or if you have bad credit so seem like a risk for the landlord.

It sounds like either her salary isn’t enough for her to apply on her own and/or that this landlord is unusual in requiring a guarantor for 2 adults with FT salaries. Still, my advice would be that they need to be patient- start looking for a place only when he has a job offer and if this one landlord is troublesome then find somewhere else. It won’t be the only HMO in the area and once they’re a professional couple with 2 salaries they really shouldn’t have any trouble finding somewhere that doesn’t require a guarantor. If she wants to jump the gun and her Grandma will guarantee it then fine, that’s their business, but don’t involve yourself.

I haven’t heard of a 4 month tenancy agreement but I can see that would be good when sharing a house with strangers. But if your son can also be given 4 months notice would that be a concern?
That could make setting in the area difficult.

If it’s his GF pushing for this then it should be her parents who become guarantor.

I think they are both being rash. They will finally be living in the same town, which moves their relationship forward. Why not live separately for six months? She is living very cheaply and would regret giving that up if they split up again. And it would be good for him to live independently for a while without her calling the shots.

We’re guarantors for our student kids. I think I’d have no problem if it was just him alone. My worry would be, because they split up once, what happens if they split again, and he moves out? You’re then still liable for her rent even though he isn’t living there anymore.

To be fair to the girlfriend, many people do not understand what being a guarantor truly means. If she/the DS believe it means OP is liable for no more than 4 x £850, then it doesn’t seem that much of an ask, especially if she has that in an isa or similar if it were needed. There was a thread on here a little while back where a newly divorced woman was cross none of her friends would do this for her, until the openended and uncontrolled nature of the commitment was explained.

As a PP said, just because a person is earning, doesn’t mean that the LL won’t seek a guarantor unless the person earns pretty well (30x the monthly rent was mentioned, which would be c£25k, but the multiple may be higher). I had a working friend in her 40s - same steady job for many years - who had a lump sum coming for the sale of the FMH but she still needed a guarantor to rent a 3 bed for her and kids, as she needed a place secured ahead of the day she sold the house.

Fwiw, I needed a guarantor until I was in my early 30s. Dh and I were married and both working with good credit history. 😂 It’s not easy to secure a tenancy. While I’ve never lived in an HMO, so I can’t speak to those rules specifically, I think it’s quite typical for young people without years of landlord references and years of employment. My mum happily signed as a guarantor on our first and second tenancies together. I would do it, assuming it all checks out legally, but I would expect them to pay regardless of what happens in their relationship and I think you need to trust that would happen before you agree to anything.

Depending on how much cheaper the rooms are, perhaps they can rent a room each and use one as a bedroom and the other as a lounge type area.

Edited to add that possibly not all the HMOs, eg the cheaper rooms, are wanting a guarantor. Whichever way it is, I'd not be a gaurantor in this situation, if any, to be honest.

It's quite common for a letting agent to ask for a guarantor especially if it's the peoples' first time renting as they have no referral from a previous letting agent or landlord. I had to do it for my daughter a few years back or she couldn't have moved out.

He says they have more than enough cash to pay the sum in advance, but that's not an option, and I'm not sure I'd recommend it if it was.

Get him to give you that money in advance then as a guarantee you won’t be out of pocket at any stage. Then you pay the rent each month or transfer the monthly rent amount back to him to pay. Simple!

Except that we've established there is no sum and the liability is likely to be open ended. If it could be fixed at 4 month's rent, I'd do it without thinking too hard.

Having worked as an estate agent and leasing hmos you want to be super careful because none of the ones we were involved in leasing allowed couples and several times tenants got caught out and were immediately evicted by there landlords and left the guarantor to pick up the rest of the tenancy which was not 4 months and every contract is to the end of tenancy usually.

Please get proper legal advice, I worked in banking in legal, and I saw so many cases where people were bankrupted by acting as guarantor. You want to make sure you’re only guaranteeing your sons part, also that it is limited in liability, which very few guarantees are. Otherwise your liable for all the debt, even longer than 4 months, plus accumulated interest, and costs, which is where the trouble start, once someone gets in debt, the debt gets very large very quickly. Having had the job I had I wouldn’t guarantee anyone.

be very, very careful!

That seems harsh. I've been guarantor for all my kids when they were at uni, for a couple of them in their first rental after uni where I was also guarantor for flat mate. Currently guarantor for GS at uni as his parents wouldn't sign.

Where are they supposed to live if landlord insists on a guarantor? Would you leave your student child sleeping rough.

I think they're asking you because her parents have said no. I would never be anyone's guarantor.

Her parents have apparently now said yes.

I have lots of concerns about this move. I worry he'll government up his good job and taken just any work to move, I worry they'll break up again, I worry that she's much keener on this move than he is etc etc, but he has to leave and make his own mistakes eventually.

I will say that the transition from childhood to adulthood (still ongoing now) has been the hardest phase of parenting for me.

A definite no until ds moves there properly. As others have said until tgrn you are guaranteeing a young woman who you barely know.

What does that mean, after 4 months the tenancy is secured for another 4 months?

I wouldn't do it, tell her to ask her parents.

Just a thought, could ds give your four months rent which you save as a ‘deposit’, so if anything happens, you have the money there (or even two months set aside).

Thats a good point that they could be racking up debt behind your back. Plus if they wreck the joint you could be liable.

Is the tenancy for the whole flat or per person? My son was in one which was per person. Others are per flat, so if one person leaves, you become liable for that cost, even if it’s not your son. Ie. You have to cover the deficiency.

We needed a guarantor whilst short term renting inbetween houses. We were both in our late 30s with good jobs. My mum ended up doing it.

Yes, I think it's the fact that they have no renting track record, rather than their age or financial situation that means the guarantor is required.

I help people find Rentals, 95% of them are from overseas and have no rental record here or credit record. Only 1 has ever failed Referencing and needed a guarantor or to pay rent upfront

So why is our experience that landlords require them?

Saved me typing it. ^ 100% this @Blanketfull

Some do, its more prevalent in certain markets. I have found that where a building or company mostly caters for students they have a blanket policy on it for example even if the applicaant is not a student
I cannot say why your DS has been asked for a Guarantor

An adult of 25 should arrange these things for themselves and not be bankrolled by parents or put them in this risky position. I dont know how your son can ask you to put yourself at risk in this way. Does he have no pride?

It's Ok to say they "should" , but how?

Landlords hold all the cards in many areas.