Now you may be looking at this form sceptically, but Tenant Guarantor forms are an incredible way of ensuring that you never lose out on your property investment.
In simple terms this form can act as a legal piece of insurance for you to use to save yourself against rental loss, damages and any ensuing legal fees that can be incurred during their time as your tenant.
All that you need to do to make these work is get your tenant to get a guarantor to vouch for their character and their ability to make payments.
By doing so, should your tenant ever fail to fulfil part of their agreement - in particular paying their rent - their guarantor is legally obliged to cover the cost.
With this information in mind, it is important that you get them to fill one of these in. As soon as they do, their guarantor is then too legally bound to you, the property and the tenant too.
Download a Tenant Guarantor form now or alternatively keep on reading to find out more.
Saying all this, the Tenant Guarantor Form should not be used as an alternative to getting an Assured Shorthold Agreement. You need one of these too. This guarantor form should only act as a supplement to your agreement.
Why have a Guarantor?
The answer to the question is simple: peace of mind.
If for example you ever have a tenant who has a below average credit status, but has got someone who is willing to vouch for them (as a guarantor), should there ever come a time when they can’t, you won’t lose out.
Why? Because of their guarantor.
Saying this, you should always make sure you do all the regular credit checks before you make a tenancy agreement with them. And this counts for the guarantor too.
It is all good them vouching for their friend or family member, but if they themselves cannot cover the costs should something go wrong, then you will still be at a loss.
How to deal with the Guarantor form?
When it comes to the signing itself, everyone needs to be present: yourself as the landlord, the guarantor and a witness for the guarantor. Once you have got this form signed, you can then proceed to the signing of the assured tenancy agreement.
Now as we said before, should your tenant ever fall into arrears, their guarantor is bound to make up this money.
However should the guarantor then fail to make these payments themselves you can take the guarantor to court.
This may look extreme, but sometimes it cannot be avoided.
All you can do, to prevent this scenario ever playing out is make sure before you sign the guarantor form, that they have got the collateral to cope with this outcome.
One way to check that both your tenant and their guarantor is reliable is to put them through a screening process first. Look at their background, their job and their own housing situation. It may take some extra time, but it will be well worth it in the long run.
How long does the form/guarantee last?
Essentially as long as the tenancy agreement lasts. So if your tenant is under contract from the 1 June 2009 to the 31st May 2010, their guarantor is under obligation to cover them throughout this entire time.
This guarantee can even be extended if their tenancy agreement becomes periodic.
If it does, their guarantor will still be their guarantor.
But if the fixed term is over and becomes periodic, their guarantor does have the choice of opt out of the deal by writing to you asking to terminate the agreement.
Saying this, they should provide you with a legitimate and reasonable reason for doing so.
It is undeniable that Tenant Guarantor forms are an incredibly valuable tool when establishing your property investments.
However, if you are still any doubt about the benefits of this form, why not attend one of our FREE 2 hour taster sessions and let our team prove to you, the true versatility of this essential form. It may look like any other form, but a Tenant Guarantor could potentially save you thousands of pounds.
Contact us today on 01908 309274.