Hi guys my tenants employment acted as guarantor for him. He is on a 6 month tenancy which we are letting rolling over . However he has informed me he has left that employment for a new employer! As the previous company signed as guarantor and the 6 months is now ending and it is rolling over and he has left that employer are they still liable as a guarantor ? There is nothing in the contract to say it was only while he was employed by them it was the standard guarantor agreement via the tenancy. Many thanks
They are probably still liable, but it will depend on many factors. Guarantor agreements are notoriously difficult to get right and often unenforceable, which is why I never use them.
Just wondering if you can explain a bit why this is? My son is looking to move out into rented accommodation and I guess I will be nominated for Guarantor-ship. (I never used them either when signing tenants so do not know much about them.)
Guarantee agreements have to be signed and executed as a deed to really carry any weight. The guarantor needs to be advised to take legal advice and given time to do so. They also have to have a copy of the tenancy agreement in advance and time to read it. If the guarantee is to go beyond the initial fixed term or has any specific requirements then these need to be drawn to the guarantors sttention. Missing out any of these steps can render it unenfirceable. Many such agreements are out there now and practically useless.
If you are being asked to sign one for a house share, make sure its a limited guarantee for your child only or you will be guaranteeing the rent of everyone in the house.