What is a Landlord Guarantee?
A landlord guarantee is a form of protection for landlords which provides them with a way to recover rent arrears and other liabilities if their tenant defaults or fails to meet their obligations. The guarantee is typically provided by a third party guarantor, such as a family member or a friend of the tenant. This third party agrees to take on the responsibility of ensuring that the tenant pays their rent and other liabilities to the landlord in full, should they fail to do so.
What is a guarantor liable for in tenancies in the UK?
In the UK, a tenant’s guarantor is liable for all of the tenant’s liabilities, including rent arrears, damages to the property and any other charges that the tenant is liable for. The guarantor is also responsible for any legal costs incurred by the landlord in enforcing the tenancy agreement.
How do you pick a good guarantor?
When choosing a guarantor for your tenant, it is important to pick someone who is financially stable and has a good credit history. The guarantor should also be aware of the risks and responsibilities they are taking on. It is important to ensure that the guarantor understands the obligations they are taking on and is willing to accept the responsibility.
What are the main things that go into a guarantee letter?
A guarantee letter should include the following information:
• The name, address and contact details of the guarantor
• The name, address and contact details of the tenant
• The amount of the guarantee
• The duration of the guarantee
• The conditions of the guarantee
• The obligations of the guarantor
• The consequences of a breach of the guarantee
If a Guarantor does not pay up what can a Landlord do about it legally and how?
If a guarantor does not pay up when the tenant defaults, the landlord can take legal action to recover the arrears. This can include taking the guarantor to court to obtain a judgment and then taking steps to enforce the judgment.