Tag Archives: Rent Guarantee

09Jan 2012

Rental Property Advice: What is the Role of a Guarantor?

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By Craig Smith

The majority of letting agents in England, including ourselves, usually insist that a tenant is referenced before proceeding with a tenancy. This usually includes a credit check and background checks on the prospective tenant in order to confirm their identity and credit history.

Who are the Referencing Company?

Different agents use different referencing companies to carry out the checks and some are more in depth than others. This doesn’t necessarily mean that, by having a tenant referenced, you are guaranteed a good tenant. Everybody’s circumstances are different and can change at almost any time, whether that is 10 years down the line or 10 days into the tenancy!

Poor Credit Equals Bad Tenant?

Similarly, it is not always the case that if someone may have poor credit that they won’t be good tenants and look after the home. With the aid of a guarantor, a tenant can proceed with an application for a tenancy with the Landlord knowing they have an additional ‘safeguard’ should the tenancy go wrong.

What Does a Guarantor do?

Provided the tenant pays the rent on time (and in full!) and looks after the property, the answer is nothing! But perhaps the best way of describing the responsibilities of a guarantor is that they have the same responsibilities as the tenant but without being able to actually live at the home. This does not just include and rent arrears but also and damages or costs should the tenant fail to cover them. For example, if a tenant is not contactable at the end of a tenancy but with damages to the property. The guarantor can also be used during the tenancy if a tenant fails to pay the rent on time.

A common misconception if the length of time that a guarantor is in place for. Most Assured Shorthold Tenancy Agreements are for 6 or 12 months or maybe more and guarantors can often believe that they would only be responsible for the initial term of the tenancy. However, unless agreed otherwise with a Landlord, the guarantor could remain in place for the full length of the tenancy, whether it lasted 6 months or 6 years!

If you are about to stand as guarantor for a tenancy you should be absolutely certain that you are in a position to do so. You should also seek advice if you are unsure of any of your responsibilities before signing any agreements! 

11Mar 2011

Property Insurance: Is it Necessary?

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By Craig Smith

These days, there seems to be an insurance package for just about anything. Is it possible to have too little, or even too much insurance?

Advice for Tenants: Accidental Damage

Insurance isn’t just something for Landlords to consider, Tenants can also take out protection against damage to the Landlords goods. Whilst this might not seem very relevant renting an unfurnished property, don’t forget that the carpets, curtains and any other fixings still belong to the Landlord and are classed as their goods. It only takes the click of a finger to spill something over the carpet and the cost of replacement could be very costly. Insurance can be taken for accidental damage where Tenants would only need to pay the excess.

Landlord Advice

The obvious insurance that springs to mind for Landlords is buildings & contents. In the event of a major fire of flood, for instance, a homeowner could be left with nothing but an unsafe, uninhabitable pile of bricks. It is also important to make sure the goods are valued correctly, there isn’t much point in having insurance to cover £10,000 of items if they are actually worth £15,000!

Rent Guarantee Insurance

Landlords can also take out insurance to protect themselves against loss of rent. This might not seem necessary with a good, steady tenant but what happens if the tenant suddenly finds themselves out of work? With no money coming in, they would have no way of paying the rent. And, although there may be a deposit held, this may not be enough to cover a number of months rent owing.

What can Castle Estates do?

Castle Estates work in association with an independent insurance brokers who can provide quote for the above services. More information is available on our website or by contacting us directly.