Horrified at how many parents guarantee rental agreements without reading

[PinkDino33]

This might sound brutal but I am regularly horrified on Mumsnet when I read posts from parents desperately seeking advice because things have gone terribly wrong with the property their child has rented, and they are shocked to discover the full extent of what they and their child are liable for.

Their DS has just found out their flatmate hasn't paid a single month of rent in the 12 months they've lived there.. Does he really have to pay what the other boy owes?

The DD's flatmate is making life hell and her and all the other flatmates want to move out and stop paying... surely this is allowed?

The DS signed up to a house with his friends but now he wants to move back home.. Does he really have to honour this contract and pay the rent for a whole year?!

It's like parents don't really think of a tenancy agreement / guaranteeing a tenancy as being a real contract, and don't know anything about what they've signed.

Is it a joint tenancy agreement? "No idea"
Can you give notice or is it for a fixed period like 12 months? "Don't know"
"I'm going to have a proper read of the contract tonight.."

It's no good properly reading it 6 months after you've signed it!

People seem to think the contract / how it works with the Landlord must be based on fairness.. It's not fair that their child is financially liable because another tenant hasn't paid, so the landlord can't possibly have the right to try and get the money from him. It can't possibly be the case that they've guaranteed the full rent amount and not just their child's - because that would be madness!

Say it's a 6 person property on a 12 month joint agreement with each person paying £750pm.. that's a total rent of £54,000 that you are guaranteeing!!

I say this, not to shame parents but because if there was more awareness of what parents are actually signing this would cease to be the norm amongst estate agents and landlords. You've got tens of thousands of parents every year signing up to these things which no one in their right mind would sign if they actually read and understood the thing!

It's horrible when these things go wrong and you're living with someone who's a nightmare or doesn't pay, so I do sympathise. But if your child is signing up to a tenancy agreement (especially if its a joint agreement and you need to guarantee it!) ask questions, READ the contract, look up terms like 'joint tenancy' online, ask for proper legal advice if you don't understand anything.

Unless you are in Wales you dint get grants fir uni and it’s paid in three instalments, the first instalment is only paid when you enrol, well after you have to make a first rent payment in private housing.

That could be even worse. Under my DC's lease (in Scotland) the tenants could at any time give 2 months' notice to terminate, but it had to be given jointly by all tenants. This is intended to protect tenants in situations like marital breakdown: the spouse who is moving out can't break the lease and leave the other person homeless. But what if student A waltzes off, stops paying rent and can't be contacted or simply refuses to sign? Guarantor of student B could theoretically be on the hook for ever.

My solution: at the outset all the tenants sign a notice to terminate, and give it to me, to deliver to the landlord if the need arose. I thought that was quite creative; DC thought it was bonkers. In the end the letting agent relented and my guarantee was limited to the amount of DC's share.

What's with the capitals??

When my DC was at uni he had got a part time job in M&S and became guarantor for a 4 bed student household.

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

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

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.

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.

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.

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.

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

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.

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.

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.

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

Get the insurance if you are concerned about potential liability.

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.

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.

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

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 😀

What insurance? I couldn't find anything.

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

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.

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

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.

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