I have been asked to act as a guarantor by a friend. She is looking to rent a property. There will be 5 other people in the property for a total of 6. We do not know the 5 other people.
OpenRent sent me the email asking me to activate my guarantor status. In the email, it says I will be “jointly and severally liable for the tenancy along with all tenants”. Just want to confirm if this means what I think it means? Which is to say, that if one of the random other 5 people stop paying I am on the hook for their rent too, not just my one friend? Because I can afford to be a guarantor for one person (my friend), but not if it means I am at the mercy of these other people who I don’t know.
If the tenants are signing one tenancy agreement in their joint names, then yes, you are responsible for all, because in reality each of them is individually responsible for all.
If your friend is signing a single room only tenancy agreement in only their own name, with shared access to the communal spaces within the house, then you are signing as guarantor for them only.
Thank you. I’m still a little bit confused. My friend would be signing a tenancy for a single room with shared access to communal areas. However, as mentioned in the quote, it says I am “jointly liable” which leads me to believe it would be the former, even though we do not know these other people. Very concerning lol
The guarantor agreement for a single room is a limited agreement
For a house it’s an unlimited agreement
You need to read it carefully
It will specify what you are liable for and who you are liable for
If you are liable for the house don’t sign
If you are not sure get legal advice
Nicholas17, could you tell us whether each tenant has their own tenancy contract or whether its a single tenancy for the whole group.
If its the latter then yes, you would be liable for the arrears of any and all tenants. It is possible to sign a limited guarantor agreement even in these circumstances, but Im not sure whether Openrent offer that.
If its the former, then you would only be liable for any rent arrears of your own relative, although you would be liable for any damage to the property along with the other guarantors.
Guarantors are strong urged to take legal advice on the terms of the agreement before commiting to it.
Hi, I believe that each tenant will have their own contract. They aren’t joining at the same time and my friend doesn’t know these other people. I suppose this is a good question for me to ask the landlord to be certain but my friend certainly isn’t signing a contract with the help of any other tenants.
She has also asked the landlord by text who has told her I’m only liable to my friend which is reassuring.
You will be liable for damage in communal area
Limited liability means liability for rent to tenant but joint and several for everything else
Read contract carefully
Some landlords either dont understand proper tenancy practise or fudge it, so its possible that this is a joint tenancy where nobody has met before and all are asked to sign/arrive at different times. Its definitely worth finding this out. The landlords word about limited liability is not the same as a legal guarantee
I’m afraid to say that the fact that you are reassured by a text from someone who you have no knowledge of reveals a level of naivety that I’d be wary of.
This single signature could cost you thousands of pounds. By law, as a guarantor you should be given a copy of the entire tenancy agreement to read through. Get that and read every word. Even better, get a solicitor to look it over. If you’re worried about the cost of the solicitor, ask your friend if they would cover that or even split it with you. After all, you’re doing them a very sizeable favour if you do agree.
And if you’re worried about the cost of a solicitor, imagine how you’ll feel if you get a court summons to pay thousands because the tenancy goes horribly wrong.
Any parent will have done this for their uni kids, as I have. If the agreement is only in your friend’s name then you are only a guarantor for that person and their specific rent payment. In terms of the communal areas and damage you will have some liability.
As mentioned by someone if you are really worried then get advice. You can use just answer and speak with a property solicitor on a free trial or for 50 quid a month.
You could ask to amend the contract if needed as long as is in line with statute. Or check out the other guarantors who will have also been referenced checked
That means you will be jointly and severally liable for “the tenancy” along it all tenants NAMED on the tenancy agreement that you sign.
You are not liable for any failures to pay rent or or damage caused by tenants other not named on that agreement
You should read that agreement carefully.
Being a guarantor means you are liable to cover all the financial obligations that a tenant has not just rent arrears. It can include damage caused too.
So if the agreement names other joint tenants you are usually liable for them too.
BUt if they have their own tenancy agreement you are usually not ..
Thanks for the replies all. In the end I changed my mind and told my friend I didn’t want to be the guarantor. I think I probably was misunderstanding the contract and I doubt I would be held liable for the other renters. But my gut was telling me something and I think saying no was the right call