There are two types of guarantees. The first is the one that can be included in the lease through additional clauses. In this case, the guarantor would sign the lease in the same way as the tenant. The recovery of rents and losses incurred after a tenant violates a lease is, of course, a priority for landlords. Landlords should therefore always remember to maintain security, especially with student tenants. Since the increase in layoffs leads to an increase in the number of tenants who cannot afford to pay their rent, landlords may have rent guarantee insurance with a premium, but a useful tool for them is to get a guarantee. A guarantor is a person who agrees to pay rent or damages associated with a tenancy if the tenant is unable to pay. Usually, this is a family member or a close personal friend of the tenant. As a rule, they will also be owners in the UK. To ensure that the guarantor is legally obliged to guarantee the terms of the rental, the NEAT provides for two separate guarantee acts, depending on the amount of rent guaranteed by the guarantor. We can provide you with warranty forms and/or revise your rental agreement so that landlords are protected and documents are up to date.

We have experience in successfully prosecuting claims against guarantors in Yorkshire County Court and beyond. If you need help, please contact Gareth Archer or Lynne Branchflower. Landlords should keep an eye on the duration of a guarantee and be aware that if a rental term changes or a new tenancy is concluded, the guarantee automatically ends and the landlord must look for a new guarantee. In order to properly execute a guarantee document, it must be signed by the guarantor in the presence of a witness. This witness must also sign the document. The guarantor must receive a copy of the lease (attach to the deed) so that he is aware of the responsibilities it covers. Ideally, the guarantor signs the deed in the presence of the owner/agent. The second type of guarantee is that of a guarantee certificate. Yes, this would include a separate document (as if the owners don`t already have enough to do), but this is the method we suggest.

Overall, it is simpler and clearer and effectively sets out the guarantor`s obligations. Normally, the deed of guarantee would be unlimited, so the guarantor guarantees the entire rent and all damages under the lease. If the guarantor is not willing to extend the compensation until now (e.g. B in student dormitories, a parent may not want to guarantee the payment of rent by tenants other than his child), it is possible to have a limited guarantee that could, for example, guarantee part of the rent, but with unlimited liability for other violations. You must ensure that this document is signed and attested before signing the lease. In most rentals, the guarantor will not be needed, as most tenants pay their rent on time and leave the property in good condition when they leave. However, by getting a guarantor, landlords can have the peace of mind that if their tenant defaults on their obligations, they will be able to make up for their losses later. It is worth considering whether the guarantor would be able to pay the tenants` liability in the event of a breach. Therefore, guarantor checks should be performed, as you would with a potential tenant. The landlord should check whether the guarantor has assets to settle a liability, and a search in the land register can be done inexpensively to confirm whether or not the guarantor owns his home. .