Are you thing of acting as a Guarantor for a Tenant for someone. If you are going to do this you need to remember several things
1. Family members and friends say that they wont let you down and they will pay the rent etc but they can let you down, and not only let you down but then do a runner.
2. When signing as a Guarantor remember that your situation may change. You could be in a great job at the time that you guaranteed a tenant, but by the time you are the called upon to fulfil the obligations of the person you have guaranteed your situation could be totally different, you could be in a less well paid job or even unemployed.
3. If you are going to act as a Guarantor, and especially if you are guaranteeing tenants check regularly on the property being rented. Remember if THEY damage the property and do a runner YOU WILL be paying the landlord for any unpaid rent and the repairs to be done to the property.
4. Make sure that an inventory is done at the beginning of the tenancy and ask for a copy. TAKE PHOTOGRAPHS/VIDEO OF THE PROPERTY PRIOR TO TENANTS MOVING IN. You also want a copy of the Inventory taken at the end of the tenancy.
5. Keep a gentle eye on the people you are Guaranteeing, if you can see they are getting into financial difficulty be aware that that could impact on you.
6. Regularly visit the property (at least once a month?) to check that the property is being kept in good condition.
6. Check with the landlord/agent that the rent is paid each month and ask to be informed the moment there appears to be a problem.
7. Check the Guarantee Agreement very carefully, if it does not specifically state that you are only Guaranteeing a person for a set period of time i.e. a year, when the Tenancy is renewed so will your Guarantee and so will your obligations as a Guarantor. You can inform the Tenant and the Agent you are only acting as a Guarantor for a year (make sure that that is stated in the agreement) also back that up with a letter/e-mail to both the tenant, landlord and the agent.
8. When the Tenant moves out make sure that they have paid the last month's rent and the deposit will cover any damage that maybe over and above wear and tear at the premises.
Its great to help people but remember YOU COULD end up with a Judgment against you, and IF YOU OWN your own property the ultimate result of that could be an ORDER FOR SALE ON YOUR PROPERTY to pay the outstanding monies owed by the tenant YOU guaranteed due to their not paying the rent or damaging the rented property.
Please share this if you think it will help anyone
No comments:
Post a Comment