I am guarantor for a tenant who has now been in an open rent property for over 12 mths, no payment issues, always ob time and no change in circumstances but now the tenancy is up for renewal I am being asked to act as guarantor again. This is not an issue but why is it necessary when the tenants now have 12 mths history and from a payment perspective have proven affordability. Any insight would be appreciated.
Landlord hedging their bets. You can decline if you wish
Circumstances can change. If you decline it may impact landlords opinion on renewal next time.
If you decline then the tenant will more than likely be going
Thanks Jason, but I didnt think that was possible anymore with recent changes in legislation. I thought the tenant was protected from being evicted for no reason.
Is that not correct?
No. The changes you are on about are yet to be passed as law. It may well be years before this happens, if it ever does. When it was in news recently that was its second reading in House of Commons.
Thanks but anyones circumstances could change, if mine change then the security I provide is impacted. I also thought that recent legislation meant that a tenant, who is paying, has done nothing wrong and complied with the AST cannot be evicted.
Is that not the case?
Ok thanks again. I’ll keep an eye on that, I dont mind acting as guarantor again this time but dont want to be on the hook indefinitely.
My understanding is that even with a ‘tenancy renewal’, you are still guarantor unless the landlord says otherwise. You as guarantor cannot just decide to no longer be a guarantor, so the fact that the landlord is ‘asking you to be a guarantor again’ suggests the landlord doesn’t fully understand what a guarantor is.
With regards to security, for me as a landlord, it’s more that if the tenant doesn’t pay for whatever reason, I then have the tenant AND the guarantor to pursue for the rent, so I’m more likely to be paid. Additionally, the fact that a guarantor is in place is often what keeps tenants focussed on paying rent as they don’t want their guarantor to see them as someone that doesn’t pay their bills.
It may also be something to do with any rent guarantee insurance the landlord might have. If the tenant needed a guarantor to pass referencing, the landlord might only be covered by their insurance if the guarantor remains.
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