In a recent NLA newsletter it was stated that it was "not advisable for landlords to include the guarantor’s details on the tenancy agreement. This could cause mistakes and confusion – the guarantor is not party to the tenancy. The following sequencing is best:
Reference prospective tenant
Reference prospective guarantor
Guarantor agreement signed by guarantor (guarantor must have sight of the tenancy before it is signed by the tenant).
Tenancy agreement signed by landlord and tenant"
The article goes on to say that landlords should “Send the guarantor a ‘letter of guarantee’ for signing with a covering letter. The letter should also contain an explanation of what the guarantor is liable for, such as rent arrears and damage. It should also include a description of the guarantor’s liability, as in the case of a jointly and severally liable tenant this could extend beyond the individual’s rental liability”.
As OR do the opposite to this ie the guarantor details are in the tenancy agreement, a ‘letter of guarantee’ is not sent to the guarantor and the guarantor does not see the tenancy agreement before the tenant signs it. I am concerned that if a dispute went to court the judge may find the OR process to be unfair,
Your (OpenRent) comments would be appreciated.