Can't get a guarantor for student accommodation

[EddyF]

Sorry probably wrong place to post. Has anyone been through this? Niece has been aacepted at a university outside London. Missed out on student accommodation provided by the university so has a few viewings from estate agents. She's just received an email from one confirming the viewing but also states "all students need a guarantor.

There is absolutely no one in the immediate family that can help with this.

Is there a way to get around this issue? rent will be paid by maintenance from SL.

Thanks

I recently signed as guarantor for my student nephew. I was credit checked, I was very careful to check that my liability is limited to my nephew only, and not for the entirety of the rent. It also covers rent only, not damage (to be fair they’ve all paid a hefty deposit) etc.
This rental is through a uni approved landlord scheme though so well regulated. There are some shockers out there though. I remember from my students days out guarantors were signing a joint and several agreement, with as far as I can remember no limitations.

The problem is students are not usually the best tenants, partying, drink, possible drugs, upset neighbours. Let alone damage to the property, I would not let a property to students.

Quite surprised that so many people have signed as guarantor for the whole house. Don't believe the agents when they say that they won't come after you for damage done by other students. Of course they will! My mother (a solicitor) refused to sign for shared liability and the agent told her that she didn't need to as plenty of other parents had signed!

If you ever watch the TV show Can't Pay, We'lll Take It Away, the sheriff's always say things like,

"I would do anything for my kids even lend them thousands of pounds but I would never be a guarantor on a rental property for them"

My son's friends are sharing a "six bedroom" house in our town for uni.

They each pay £500 a month (£3,000 a month).

It is an OK house but if the 'LL wanted to rent it to a family, they would not be able to charge more than £1,000 a month.

Students may be a pain in the area but it is a very profitable market.

The problem is students are not usually the best tenants, partying, drink, possible drugs, upset neighbours. Let alone damage to the property, I would not let a property to students.

Such lazy stereotyping.

Such lazy stereotyping
I agree.

I have just noticed that a whole load of cleaning products and a mop and a bucket have disappeared from my house.

I messaged my son to see if he knew where they were and he has "borrowed" them to help his mates with housework as they "don't want their house to look like a tip".

Only irony is his bedroom here is a tip but at least he has got pride somewhere

I had the same problem as a student, no-one in my family could be my guarantor, as no-one has that kind of money (first in the family to go to uni, all funded on student loans and working part-time around my course) fortunately my landlady was very understanding, and did waive my guarantor-

Can she talk to the landlord about it- explain the situation- this must be a fairly common occurrence?

In one of my close friend's case in the same situation to mine- the university acted as the guarantor- is this something that her university might do?

Good Luck to your Niece

I had the same issue when I was younger as I left an abusive family at 17 so obviously couldn't go and ask them for help.

I was lucky in that I had been saving in order to leave as was able to offer rent up front. Every landlord was different in how much they wanted, ranging from 2-6 months upfront.

It can be hard to do, but you also don't have to pay rent for so many months after to allow you to build savings back up, it's not just s giant deposit.

There are companies that will act as guarantors for students.

There are companies that will act as guarantors for students
I think that most of those companies only act as guarantor in terms of guaranteeing the rent so that it can be paid in installments.

Every UK guarantor company I have ever seem still asks for a parent or someone to co-sign their agreement so that if there is any other cost (eg damage) related to the tenancy then there is someone to go after for it.

ukguarantor.com/terms-and-conditions/

Well I've just check the very standard guarantor agreement I signed for dd and it is for rent and damages CAUSED BY THE TENANT. It also says the landlord agrees to insure property as would be expected by a home owner but excluding contents. So if it burnt down there would be buildings insurance to cover, although the guarantor might be expected to pay the excess. NOT THE WHOLE AMOUNT, so don't scaremonger. Although obviously guarantors should read the small print carefully.

OP has she looked at private halls?

so don't scaremonger

I am not scaremongering

I am warning you to look at what you are signing

I have known parents taken to court for tens or even hundreds of thousands of pounds after signing to be guarantor, and cases where families have had to remortgage, or have even been expected to sell their family homes.

Look at what you are signing.

I have had horrendous cases amongst my former students, for example one house was broken into and burgled. The guarantor (dad) was taken to court for the cost of all repairs, including vandalism to the carpets, replacing windows, etc, as well as the cost of everything that was taken, it came to tens of thousands of pounds. They had the choice of remortgaging their house or selling it.

If the landlord had proper insurance and had notified the insurance company that there were tennants, I'm surprised that the insurance company would be able to refuse to pay if burglars had done the damage and vandalism. I'm also surprised that the landlord could sue the guarantor for the damage too unless the students were negligent e.g. didn't lock the door. I bet that the was more to this story than you have been told.

I'm also surprised that the landlord could sue the guarantor for the damage too unless the students were negligent

as I keep saying CHECK what you are signing!

Some guarantor agreements are unlimited!

In one school we introduced seminars from finance advisers for parents, to warn of this, as the message wasn't getting across, and over and over again, parents were signing to to accept unlimited liability.

Our son started Uni last September. We had to sign as guarantors, both have a very bad credit history. I don’t think it matters as you’re Just promising to pay if the student can’t, but this is very unlikely to happen as student loan is paid at the beginning of every term and rent needs to be paid as soon as the term starts. I don’t think a credit check was done on us, and this was for a private rental done through the uni but not Halls.

Some guarantor agreements are unlimited!

Eg
Is a guarantor only liable for unpaid rent?
In many cases, a guarantee agreement extends to other conditions under the tenancy as well as rent due, for example, any damage caused to the property, or cleaning costs at the end of a tenancy

If you share accommodation with other tenants under one tenancy agreement, that is, a joint tenancy, it’s common for the guarantee to apply to the whole rent and not just your share of it.

Many guarantee agreements for joint tenancies may imply that one guarantor could potentially also have shared liability. In other words, a parent may not only be liable for the rent of just their own child, but the flatmates as well.

You may want to ensure the guarantor’s liability is limited

From: www.glasgowstudent.net/advice/accommodation/guarantors/

Some guarantor agreements are unlimited!

They must be limited to damage/costs that the tennants are responsible for though (either because they did the damage themselves or were negligent in some way which led to the house been damaged by burglars) or they wouldn't be fair contracts and wouldn't stand up in court.

They must be limited to damage/costs that the tennants are responsible for though (either because they did the damage themselves or were negligent in some way which led to the house been damaged by burglars) or they wouldn't be fair contracts and wouldn't stand up in court.

sometimes they do stand up in court

sometimes they don't

If you have signed unlimited liability you my well be taken to court for thousands of pounds, or even more.

It would be up to the court whether to uphold that or not

All sounds a bad trend to me.

I was a student (once!). And also a young person non-student.

I never had to get a "guarantor" in those days. Though there were shared tenancies, where you are responsible for the rent as a whole, even if you are one of several flat-sharers !

People managed, somehow, with trust and common sense, without this constant demand for guarantors.

This seems to be a new, negative trend.

Not everyone can find a guarantor.

Honestly, I'd rather live in a van now rather than having to deal with all this shit constantly. Landlords have so much frigging power its completely ridiculous.

sometimes they do stand up in court

But that would be because the tenant (or other tenants in the house) were deemed responsible. A landlord couldn't sue the guarantor if the tenant wasn't at fault in any way e.g. if an earthquake flattened the house the landlord could not sue.

This seems to be a new, negative trend.

I agree. Parents need to stand together and refuse to sign the shared (practically unlimited) contracts.

Some universities will act as "agents" for private rentals. I doubt they want guarantors.