HMO Assured Shorthold Tenancy Agreement Guarantee and Indemnity
This HMO Assured Shorthold Tenancy Agreement Guarantee and Indemnity is a simple one page document in which a Guarantor promises to pay the rent if the Tenant fails to do so and to compensate the Landlord for any loss caused by the Tenant’s breach of the terms of the tenancy agreement.
It also includes an indemnity which is a separate obligation to the guarantee, which provides greater protection for the Landlord. An indemnity obliges the Guarantor to compensate the Landlord for loss or damage and is not dependent on the tenant’s obligations being enforceable.
Landlords are likely to ask for a Guarantor if the Tenant does not have a satisfactory credit history or references.
The proposed form of AST agreement should be annexed to the Guarantee so that all parties know what the extent of the Guarantor’s liability is.
Under the Tenant Fees Act 2019 (affects England only) and the Renting Homes (Fees etc.) (Wales) Act 2019 (affects Wales only) landlords and/or letting agents are prohibited from charging any fees associated with requesting a guarantor to a tenancy caught by these acts (this includes referencing fees and administration fees).
This Assured Shorthold Tenancy Agreement Guarantee and Indemnity is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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