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.

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.

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.

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’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.