Tenant Guarantor Form

What is a Tenant Guarantor Form?

A Guarantor form acts as a legal piece of insurance to protect the landlord against rental loss, damages and any ensuing legal fees that can be incurred by your tenant.

A “Guarantor” is typically a friend or family member of the tenant and has agreed to vouch for the tenant and accept the liabilities on behalf of the tenant. The Guarantor form is a legal contract enforcing the agreement. Essentially, in the event of a tenant being unable to meet their obligations under the tenancy agreement, whether it is for overdue rent, damage to the property or whatever, the Guarantor is legally bound to accept the liabilities on behalf of the tenant.

Putting a Guarantor agreement in place is extremely common as it provides a thick layer of security for landlords at no real extra cost.

The guarantor form is NOT a substitute for an Assured Shorthold Tenancy Agreement; it should always be a supplement to the tenancy agreement.

Why do I need a guarantor?

You don’t actually need one; it’s not a legal requirement, it’s completely optional. However, I wouldn’t advise to go without one because it provides that extra security. If there’s one thing I’ve learned from being a landlord, it’s that you can never be too careful; even the most reliable seeming tenants can fall into arrears.

When and who signs the guarantor form?

The landlord, Guarantor and witness of the Guarantor needs to sign the contract. The landlord should ensure that the Guarantor agreement is signed and witnessed before the tenancy agreement is signed.

What if my tenant falls into arrears?

If your tenant owes rent or needs to cover any other costs, then that’s when you chase the guarantor for the money. If the guarantor fails to make payment, then you can legally take the guarantor to court. On that note, always make sure that the guarantor has sufficient collateral before allowing them to be the guarantor. A lot of landlords hold a strict screening process for acceptable guarantors e.g. a good job and owning a property are common prerequisites.

In the past I have had to chase a guarantor because my tenant fell 2 months in arrears with her rent payment. Eventually, I ended up evicting the tenant. However, having a Guarantor in place saved me from losing 2 months worth of rent.

How does a Guarantor stop being a Guarantor?

If the tenancy is for a fixed term (e.g 14th May 2007 – 14th May 2008), then the guarantee applies for the whole of the term and is not revocable during that term. If the Tenancy Agreement becomes periodic, then the guarantor will STILL be the guarantor. However, when the fixed term is over and becomes periodic, the guarantor can opt out of the deal by writing to the landlord to terminate the agreement. This is perfectly legal and has been tested in court. The guarantor should give “reasonable” written notice that he/she no longer wishes to be bound by the terms of the deed of guarantee (beyond the fixed term).

A fixed term contract is when two dates are specific in the Tenancy Agreement, in which the tenant has rights to live in the property. The agreement becomes periodic when the agreement expires, but tenant and landlord have agreed to continue the tenancy without signing new contracts. In that case, the previous contract rolls over and becomes periodic.

Note, the guarantee will be automatically canceled if the tenant signs a new tenancy agreement with the tenant, or if the terms of the existing tenancy agreement are changed E.g. if the rent is increased. In this case the landlord will need the guarantor to sign a new guarantee form. The Guarantor can only be held responsible for the tenants liability under the terms of the tenancy agreement the tenant has seen and agreed to. If these terms are changed, they have to approve this before they can be held liable under it.

Types of Guarantor Forms

The guarantor form is commonly found as part of the Tenancy Agreement Form, but I prefer keeping them separate. There really is no difference legally.

Referencing Guarantors

Referencing Tenants should be standard practice for all landlord/letting agents, but it’s also important to reference the guarantor as well. There is no point in having a guarantor that wouldn’t be able to cover unpaid rent.

Attention! If you're new here, you may want to subscribe to my RSS feed so you're notified of all new blog entries.

Talk / 160 Comments left so far

Maya wrote this on 2010-04-05 14:07:54 It says nothing of what i am liable for. It was just address and work details. I am going to go to the letting agents when my cousin goes to sign the tenancy agreement and get written clarification. I would just want to make sure i am not bound indefinately. 131

Nick wrote this on 2010-04-05 14:21:00 If it says nothing about what you are liable for, then you can't be liable for anything! If, literally, all it has your address and work details, with no mention of you agreeing to be guarantor for a tenancy for a particular person at a particular flat, then I still think it's just a credit check form.
If you ask the agency, they might remember they've not actually got a guarantee agreement for this tenancy yet. 132

Nick wrote this on 2010-04-05 17:24:51 Credit check forms don't require bank/work details.
Every personal one I've filled in has asked for precisely that. 133

Dee wrote this on 2010-04-06 17:57:41 I have a renter who signed a rental agreement Nov 27, 2007 with no end date and an soon to be ex-husband as the guarantor since she is going to school full time. He is now asking to be taken off as the guarantorship because he was under the impression it was only for 1 year. My renter and I were under the impression it was for the term of the rental. Do I need to take him off or can I hold him to it since no dates were entered on the rental agreement? 134

Nick wrote this on 2010-04-06 18:31:35 Are you wanting to behave decently, or to act on the letter of your legal rights?
I say you take him off, and decide if you still need a guarantor for your tenant - has she missed any payments in 2 years and 4 months she has been there? 135

Dee wrote this on 2010-04-06 18:47:03 Both, my tenant has been late once because the guarantor bounced a check. Im affraid if he is taken off he will go to court to have money owed to her, child support/alimony/rent, lowered and she wont be able to pay. I have not had to go to him for rent so Im not sure if I should drop him from the agreement or hold him to it. What is the difference between behaving decently and my legal rights? 136

Nick wrote this on 2010-04-06 19:03:40 Ah, so he is the source of her income, as well as being her guarantor? And they have been separated, with him paying maintenance AND being the guarantor, all the time she has been your tenant?
Is it a market rent?
What does the guarantor agreement actually say? 137

Dee wrote this on 2010-04-06 19:49:13 He is somewhat a sourse of her income. Full time student part time job. He agreed to pay her rent and signed to guarantee unconditionally the "guarantee unconditionally to landlord prompt payment of rent" when they serperated and has been paying since. It is market rent 138

Nick wrote this on 2010-04-06 20:46:09 That seems rather different to a generic guarantee agreement!
If he's the source of the rent money, then I would have thought that if you let him go you'll either want a new guarantor, or you'll terminate the tenancy.

Do you know if there's a maintenance agreement that commits him to paying her rent? 139

Dee wrote this on 2010-04-06 21:06:06 I will see what it states in the divorce papers. They are probably more binding. Thank you for all your help. 140

kary wrote this on 2010-04-08 13:25:54 ive just paid an estate agent an £150 handling fee for them to do reference and credit checks for us, they told me that i would need a guarantor, which my brother said he was happy to do for me, but hes afraid he is not earning enough money, does he have to be earning a certain amount to be a guarantor?? 141

Jools wrote this on 2010-04-09 15:48:17 He has to earn enough to cover the rent/ potential arrears. No fixed calculation you can do here I'm afraid.

Jools 142

Ash wrote this on 2010-04-17 09:11:03 Hi there,

I'm in a bit of a pickle. I'm about to start renting a flat with my boyfriend - who has rented for over 2 years already with no problems and earns considerably more than me. I can afford to pay my own share of the rent BUT...

My parents are confused as to why I need to have a guarantor as he has his mum acting as his. They're being very cautious as they unfortunately have a bad credit history. Can my boyfriend be my guarantor? Can we get away with having only one guarantor? My boyfriend is taking the flat out in his name as I am only going to be there 4 days a week. Please help! We have to get this sorted asap! Thanks x 143

Nick wrote this on 2010-04-17 09:30:12 If your boyfriend is the only named tenant, and you are just an adult with leave to occupy, I can't see why the landlord would need a guarantee from you.
I think your landlord is either trying it on, or is a hopeless amateur - I suggest you find a different one, otherwise you might have further grief from him. 144

Nick wrote this on 2010-04-17 10:08:18 they unfortunately have a bad credit history.
In which case they probably wouldn't be accepted as guarantors anyway. 145

jules wrote this on 2010-04-23 21:19:48 I have found a house that I am willing to rent (privately) its not in fantastic condition but I am desperate to move to be near a sick relative. I have been in council housing for many years and been on housing benefit, all my payments have been made without a problem. I have already paid a very large deposit to move into this house but they say I need a guarantor, I have nobody to ask and I cannot afford to pay any more towards the deposit.

any advice? 146

Nick wrote this on 2010-04-25 10:52:11 If you think your credit rating is good enough that the landlord is being unreasonable, then find another place to rent with a more reasonable landlord.
If you think your credit rating is poor, so the landlord is being reasonable, and you can't find a guarantor and you can't find the cash for a bigger deposit, then you'll have to either stay in coubncil accommodation or stay with family for friends until you improve your credit status. 147

Paul wrote this on 2010-05-06 10:04:56 I have just signed a new short term tennancy agreement,and had a guarantor for this first period.
Does my guarantor continue with this, there is no mention of his name in the new agreement and he has not been required to sign a new agreement. 148

Neil wrote this on 2010-05-24 12:40:47 Hi Landlord - like someone else on this thread, I've written to my brother's landlord requesting termination of my guarantee - the original fixed term ended last July, I then received a note saying the original term had been extended 12 months and I did not need to renew the guarantee as the original applied (which strikes me as dodgy ground to start off with). That 12 months expires this coming July. The landlords have written back saying I have no option to exit. I'd appreciate it if you could give any pointers on this legal case of yours where reasonable notice was accepted by the courts. Any indefinite guarantee seems improbable to be legal, so I must have an option to exit at some point past the initial twelve months. 149

tel wrote this on 2010-05-29 13:12:41 i dont no wot to do i found a house to rent payed all the money for deposit and admin fees found a guarantor but have just found yes his working but hasent got a fixed address does this mean i cant use him he is all i have as my mum just passed away im on benifits so will pay rent by hb ive sold everything i own and its looks like im gonna lose the money as i cant found a guarantor i need some advice please 150

jasmine167 wrote this on 2010-06-05 09:13:54 hi i was just wondering if anyone could help me; my daughter is in student accommodation at the moment she asked me to sign a guarentor form which was fine, but i never in the end actualy signed it she gave the landlord my adress and contact details and they were suposed to post the form for me to sign but that never happened.

my daughter is currently sueing the landlord becuase the house was built without planning permission and a multiple occupuncy was not applied for (something he has already been taken to court and fined £2000 for) all 12 of her housemates decided to stop paying rent, move out and wait to hear back from the lawyer.

i receieved a letter this morning saying i was liable as a guarentor. am i actualy liable becuase nothing was signed or witnesses?

thanks in advance 151

katie wrote this on 2010-06-06 21:10:04 Is it only home owners who can be guarantors? Or can someone with their own business but not own property be a guarantor?

Katie 152

Rachel wrote this on 2010-07-02 10:39:04 A friend who is on housing benefit due to disability/ long term illness is currently househunting. She has asked me to be a guarantor. For various reasons, namely I value the friendship and I don't have buckets of cash - I'm not willing do to this. However, I was interested in the insurance as if it is about a £100 for the year, I would be happy to pay for that. Any details? 153

Alex wrote this on 2010-07-05 08:58:48 I have signed as guarantor for my soon to be ex wife. Am i allowed by law to have a key to the property?? 154

Gary wrote this on 2010-07-05 14:23:49 I have been asked to be a guarantor for my kids mum. Having spoken to the letting agents (who said it wasn't a big deal to be a guarantor) they have no real T & Cs for me to look at, I explained my concern as to what exactly my liabilities would be and the agent said I would be liable for one months rent if she defaulted, and the Insurance would cover the rest.

Any advice would be greatly received.... 155

CAM wrote this on 2010-07-05 17:50:59 Please help
My daughter has ended her contract in writing with a letting agent and I was the garantor.
Two weeks before her moving out date she has changed her mind and wants to stay in the proprty.
and advised the letting agent of this, they said she could stay at the property but I wish to be realesed of the garantor resonsabilitis, can I be realised I she has terminated the origional contract.

Please help 156

Martin wrote this on 2010-07-07 16:24:05 Hello

I have read through the blog and seen some very good advice being given.

I have been asked to act as a guarantor to my cousin who is moving due to work. She is a teacher and wants to move in with 2 frinds who also teach in the same city.

The liability under the tenancy agreement is "jointly and severally" and I understand what this means to the tenants but am not keen on having the same level for myself - as i wish to guarantee my cousin and not the other 2 sharers.

The agent has inlcuded a section in the agreement relating to the guarantors liablilty and this is also "jointly and severally".

Everything seems in order and the agent has discussed the issues clearly with me but is adamant that the liability for gurantors has to be joint and several - beacuse this is the tenant's liability.

I was hoping to find out if this is case and if not can I use a guarantor's agreement - as mentioned in numerous posts above - to limit the level of my liability to any loss or dmamage caused by my cousin.

Any advice hugely appreciated. 157

Moses wrote this on 2010-08-13 17:47:26 I agreed with my son to stand as guarantor for his rent but I unfortunately I was admitted before the agreement was executed. My son then forged my signature and presented it to the Estate agent who ignorantly accepted it. My son defaulted and the landlord got judgement against him. A charging order notice was given but my son and I did not attend the court. The judge gave judgement and Final Charging was issued against my property and registered with land registry. I am appealing for court to set aside the Charging order on the ground that although I consented I was going to sign it but
1. I fell ill and was admitted in the hospital
2. that my son forged my signature and
3. that the guarantee letter was not witnessed as required by law.
Can I succeed succeed to set the Final Charging Order aside even though I failed to appear in court for Interim Order and also ignored summons for final charging order? 158

Julie wrote this on 2010-08-22 18:29:51 Hi I acted as guarantor for a friend who asked for some repairs to be done in the house she was renting. she has now since been evicted because the landlady preferred to get rid rather than do the repairs. The agents changed hands about 6 months ago and I didnt sign a new agreement. I have since gone through a marriage breakup and lost my house which was a condition of the guarantor (being a homeowner) The agent has now approached me saying there is approx 2-3K's work of work needed in the property including replacing carpets that were over 10 years old and redecorating. When I lost my own home the last thing on my mind was removing myself from the agent :-( is there anything I can do as I am a undischarged bankrupt. The origional agent didn't do a credit search, if they did they would have seen I was 3 months behind in my mortgage. I am also currently unable to work due to disability.
There are 3 guarantors in total, and only one of which fulfills the requirements now as set out by the agent. 159

robgambino wrote this on 2010-08-31 11:35:04 I have been living in a property for almost 2 years. I had a previous guaruntor who was a close friend (he would never have pulled out) Unfortunatley he passed away and I was asked to provide another guaruntor, hmm like i keep a spare just incase... I was issued with an eviction notice and then a neighbour said they would stand for us :-) we was then safe to remain, however due to personal reasons the guaruntor now wishes to pull out effective immediately, I am on an assured shorthold tennancy and it has not been renewed since we moved into the property, please anyone where do we stand?

many thanks please reply asap 160

Please leave a comment

Click here to cancel reply.

*Name

*Email Address

*Your comment

Notify me via email when someone else leaves a comment