Third party paying rent?

What’s the deal if a third party agreed to pay the rent?

Let’s say a mum and kids move into the property, mum by herself would not pass the affordability check but grandparents (i.e. the mum’s parents and kids’ grandparents) agree to pay the rent or top up what she can afford, and they pass all the necessary referencing checks?

The grandparents are not tenants as they are not living in the property and they are not guarantors as they are actually paying the rent every month. What kind of contracts are needed?

The contract is in the Tenants name but you will need a solid guarantors agreement
Not being disrespectful , but a guarantor’s responsibility is void if they pass away ( you can’t claim from their estate)

I would advise you to take specialist legal advice as I think you will need a contract drawn up specifically for this scenario

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You could make the grandparents joint tenants so that they are legally liable for the rent. However, I would not recommend doing what you suggest. Never take a tenant who you know can’t afford the rent from their own resources.


If you do this, you will suffer in the future, Look for someone who can afford the rent

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If the grandparents pass away you would need to go to court to get your property back if the tenancy is in their name
The actual tenants can’t just walk out
It would be a litigious nightmare
Are the actual tenants classed as sub tenants etc etc


You talk about your mum and the child’s grandparents, how old are your parents?
Somehow I get the feeling that they are younger than some of the other commenters are presuming and consequently the advise might differ.
I hear the concerns left by others, but the bank of mum and dad is one that is often relied on.
An 18 year old could for instance easily have parents in there late 30’s.