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Higher education

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Original poster

Rent - Has anyone used student guarantor insurance? Experiences?

16 replies

Sadik · 12/12/2022 18:26

DD is looking at houses for next year, all of which want a guarantor with joint & several liability. Given the shortage of housing, refusing is likely to just leave her homeless. There seem to be a few places offering insurance for around £100, which seems like it might be well worth it IF they're likely to actually pay out. Anyone done this / experiences?

OP posts:
Astrabees · 12/12/2022 18:41

We were caught out when DS2 rented a student house as one of 5 living there. We had no option but to sign joint guarantee. 2 of the students complained about minor defects in the house and refused to pay rent. Their parents did not pay up so the agents threatened to sue us all, we had to pay up as we had no option and we were worried about having a county court judgement against us. If you can insure against this risk I would suggest 100% to get it.

Original poster
Sadik · 12/12/2022 19:53

Yes, it's a group of six & as she's going into 2nd year obviously they don't know each other that well so very keen on the insurance option. I'm just wondering whether they'll actually pay up if needed!

OP posts:
FinallyHere · 12/12/2022 20:15

as she's going into 2nd year obviously they don't know each other that well

I get the issue about needing a guarantor. One way round that is for all of them to pay up front.

Would that be something to consider?

AutumnColours9 · 12/12/2022 22:06

I looked into this but it was more or less rather same as being a guarantor as you still needed a co-signer who was responsible. That was Housing Hand
Even they couldn't answer why this was better than being a guarantor.

Luckily my kids managed to find places they didn't need to have a guarantor or where the majority had guarentours so the landlord wasn't bothered.

MeJane · 12/12/2022 22:10

I'm looking into this right now. It's a very difficult situation as like you say, they hardly know each other. Chances of getting them to pay in advance for a whole year is zero I would say! Where are they going to get six grand from?

I'm quite cross to find myself in this situation really. I told dd to look at private halls as then you are on,y your own students guarantor bit she wouldn't.

Needmoresleep · 13/12/2022 07:13

If you are able to pay up front it is possible to negotiate out of being a guarantor, even if the others are required to be guarantors.

In our case the grandmother was paying (one exemption to the seven year IHT gift rule is paying for education) so we discretely spoke to the landlord and paid up front. Landlords generally like money up front. Lower risk and better cash flow. The tenant is still required to pay a deposit and keep the property in good order.

Original poster
Sadik · 13/12/2022 17:18

"I looked into this but it was more or less rather same as being a guarantor as you still needed a co-signer who was responsible. That was Housing Hand
Even they couldn't answer why this was better than being a guarantor."

What I'm looking at is a bit different. It's straightforward insurance (eg from GuarantorInsure covering the risk of another co-tenant defaulting.

Sadly paying up front not an option!

OP posts:
Original poster
Sadik · 13/12/2022 17:19

"I'm quite cross to find myself in this situation really. I told dd to look at private halls as then you are on,y your own students guarantor bit she wouldn't."
@MeJane it's tricky, I think from a social point of view a house is nicer. Also, it's very much cheaper! Even paying for all bills included.

OP posts:
bowchicawowwow · 13/12/2022 17:24

My DS was in a privately rented shared accommodation for the last two years of uni. I really dug my heels in with regard to the guarantorship as I was worried and couldn't afford to cover any rent other than my DC's. I had a few heated conversations with the letting agent.We were the last to sign the joint tenancy which might have twisted their arm but they eventually agreed that they wouldn't pursue us for anything other than DC's rent. Might be worth holding out for a bit?

RampantIvy · 13/12/2022 19:17

I used Guarantor Insure last year. They are recommended in the WIWIKAU Facebook group and were very helpful. I didn't need to make any claims in the end, but it gave me peace of mind.

FanSpamTastic · 14/12/2022 00:13

I am interested too. I tried to call the firm GuarantorInsure to ask about one point - also sent an email but I have had no response - been waiting 2 weeks now.

@Sadik Another firm who has responded is only my share here.

Comefromaway · 14/12/2022 16:12

AutumnColours9 · 12/12/2022 22:06

I looked into this but it was more or less rather same as being a guarantor as you still needed a co-signer who was responsible. That was Housing Hand
Even they couldn't answer why this was better than being a guarantor.

Luckily my kids managed to find places they didn't need to have a guarantor or where the majority had guarentours so the landlord wasn't bothered.

Housing Hand is different. It acts as a guarantor for those whole families don't pass credit checks or come from abroad.

What OP is talking about is insurance a guarantor can take out for being in a joint and several tenancy. I took it out for dd and almost had to claim but the landlord decided not to pursue things. There are two main companies, Only My Share and Guarantor Insure. Both work slightly differently so be sure to read the terms. I used Only My Share.

Comefromaway · 14/12/2022 16:15

Only My Share were very quick to respond when all of dd's housemates refused to pay their rent due to another tenant harassing them/trashing the place (police were involved & he was eventually sectioned). As I said though the landlord chose not to pursue it so we didn't actually end up having to claim.

Original poster
Sadik · 14/12/2022 19:02

That's really helpful to know @Comefromaway (do you happen live in west Wales by any chance given your username ???) I'll check out Only My Share.

OP posts:
Comefromaway · 14/12/2022 19:29

No, Sadie, my username is the name of my favourite musical theatre show about the planes that landed at Gander Airport in Newfoundland on 9/11

PhotoDad · 14/12/2022 19:41

My DD will start house-hunting in Jan/Feb (on the advice of her uni, who call the shots in her city), so I'm following with interest. Some MNers on another thread have had success with contacting landlords and getting contracts re-written to be individual guarantors rather than "joint and several."

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