Tenant Guarantor Guide for UK Landlords: Legal Forms & Agreements

If you're a landlord, you may require your tenant to have a guarantor in order to secure the property. This is someone who agrees to cover the rent if the tenant is unable to pay. In this article, we'll explain what a tenant guarantor is, how to set up a legal guarantee agreement, and what to look for in a suitable guarantor.

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What makes a good tenant guarantor?

A tenant guarantor is someone who agrees to cover the rent if the tenant is unable to pay. Ideally, they should be a homeowner with a good credit rating. They should also be willing and able to cover the full amount of rent if necessary.

How do you set up a legal tenant guarantee agreement?

To set up a legal tenant guarantee agreement, you'll need to draw up a contract between the landlord and the tenant. This contract should state that the tenant is responsible for paying the rent, and that the guarantor will cover the rent if the tenant is unable to pay. The contract should also specify how long the agreement will last for.

A tenant guarantor is typically a parent or close friend of the tenant who agrees to cover the rent if the tenant is unable to pay. The guarantor will be responsible for paying any outstanding rent if the tenant defaults on their payments.

Get a Professionally drafted Guarantor pack now (the legal forms and letters)

To set up a legal guarantee agreement, you'll need to prepare some paper work. First, you'll need to draft a guarantor agreement. This should outline the terms of the agreement, including the amount of rent that the guarantor is responsible for paying. You'll also need to have the tenant and guarantor sign the agreement.

Once you have the signed agreement, you'll need to register it with the tenant's local authority. This will ensure that the guarantor is legally obligated to pay the rent if the tenant defaults on their payments.

When choosing a tenant guarantor, you should look for someone who is financially stable and has a good credit history. You should also make sure that they understand their obligations under the agreement.

Does the guarantor have to be in the UK?

No, the guarantor does not have to be in the UK. However, they must be willing and able to pay the rent if necessary.  Enforcing a breach of guarantee agreement through the Courts is problematic if their assets are in New Zealand!

What if the tenant can't find a guarantor?

If the tenant is unable to find a guarantor, you may require them to pay a higher deposit or increase the amount of rent they pay in advance. This will help to offset any risk associated with renting to the tenant.

Get a Professionally drafted Guarantor pack now (the legal forms and letters)

When do guarantors go wrong?

Guarantors typically go wrong when the tenant defaults on their rent payments. If this happens, the guarantor will be responsible for paying any outstanding rent. This can put a strain on the relationship between the tenant and guarantor.

To avoid this, it's important to make sure that both the tenant and guarantor understand their obligations under the agreement. The tenant should also be aware of their responsibility to pay the rent on time. It is a breach of contract claim.

How does a landlord sue a guarantor for rent arrears in the county court?

If the tenant has defaulted on their rent payments, the landlord can sue the guarantor for any outstanding rent. This is known as a breach of contract claim.

To sue the guarantor, the landlord will need to prepare a claim form and send it to the court. The form must be accompanied by a copy of the tenancy agreement and any other relevant paperwork.

The court will then decide whether or not to grant the landlord's claim. If the claim is successful, the court will order the guarantor to pay the outstanding rent.

Get a Professionally drafted Guarantor pack now (the legal forms and letters)

What happens if a landlord guarantor does not pay the meony the tenant owes?

If a landlord guarantor does not pay the money the tenant owes, the tenant may take legal action against the guarantor. This could result in a court order requiring the guarantor to pay the outstanding rent.