Will they still be guarantors?

Landlord Discussion
1

Hi,

It’s looking like only 2 out of 3 of my tenants guarantors will pass referencing (one of the tenants didn’t pass either).

My question is, I know I now can’t get rent insurance but, legally, do all the guarantors on the contract still have to act as guarantors?

Thanks.

2

3 unrelated tenants? You got a HMO license?

3

You don’t need one in Brighton and Hove for 3 tenants now.

4

You would still have to abide by the HMO Management Regulations

5

I’m aware of that. My question is not about HMO!

6

I’d be interested in the answers to this one on the premise that no-one apart from the OP and the guarantors actually know the terms of the deal they signed - including the clauses on interpretation.

7

I don’t understand the question. No one ‘has’ to do anything until the rental/ guarantor agreement is signed. Are they happy to sign?

8

If you’re intending to have them as joint tenants, (assuming you can persuade them all to be liable for each others debts when one of them hasn’t even passed referencing), then each tenant is liable for the whole rent and if one defaults, you can demand the shortfall from the others. I wouldn’t recommend this though. Likewise with the guarantors. Unless you are using limited guarantee agreements, (where they just guarantee the rent of one tenant), then each guarantor is underwriting the whole rent.

9

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