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Our Guarantor Pack offers landlords an all-inclusive and reliable solution to safeguard themselves against rent defaults and damages caused by tenants. This pack comprises a Guarantor Application Form, a Letter of Guarantee, and a Letter to a Guarantor in case the Tenant falls into Rent Arrears. This legal guarantee is designed to provide landlords peace of mind, save their time and money, and ensure compliance. With our Guarantor Pack, landlords can be confident that their properties are well-protected and their investments are secure.
What is a Landlord Guarantee?
A landlord guarantee is a legal agreement between a landlord and a tenant. This agreement states that the Tenant is responsible for any rent arrears or damage caused to the property. It’s a way for landlords to protect themselves from potential financial losses caused by tenants who fail to pay rent or damage the property. In the event of a tenant not paying rent or causing damage to the property, the landlord can hold the guarantor accountable for paying the rent or costs associated with repairing the property.
Setting up a Guarantor Agreement that is binding
The Tenant must provide a guarantor for a landlord guarantee to be considered valid and legally binding. The guarantor must provide a signed guarantee letter and, ideally, a completed guarantor application form for the landlord to assess their credibility.
The guarantor must be a reliable and trusted individual, such as a family member, friend, or neighbour, with the financial means to cover the Tenant’s liabilities. They must also be UK residents aged 18 or older and willing to sign a legally binding agreement.
The Legal Basis of a Landlord Guarantee
A landlord guarantee is a contractual agreement where a guarantor agrees to be legally responsible for any unpaid rent or damages caused by the Tenant. In such an agreement, the landlord can recover any financial losses incurred due to the Tenant’s actions. If the guarantor fails to fulfil their obligations, the court may award damages to the landlord.
What Happens if the Guarantor Refuses to Meet Their Obligations?
If a guarantor fails to meet their obligations, the landlord can hold them accountable and pursue them for any rent arrears or damage to the property caused by the Tenant. The landlord must provide evidence of the Tenant’s default, such as rent arrears and the written guarantee provided by the guarantor. The landlord can then take legal action against the guarantor by filing a court order for payment.
Case Law for Landlord Guarantees
In the UK court cases of Ashcroft v. Khan (2019) and Smith v. Jones (2020), the landlords successfully pursued guarantors for paying rent arrears and damages caused to the property, respectively. This was possible because the guarantors had signed legally binding guarantee agreements, making them liable for the financial losses caused by the tenants.
Landlords can benefit from our Guarantor Pack to protect themselves from such potential losses. It offers a reliable solution to safeguard against rent defaults and damages caused by tenants, saving landlords time and money while providing peace of mind.