Deed of Guarantee: Student Tenancy Agreement (Joint Tenants)

This Deed of Guarantee: Student Tenancy Agreement (Joint Tenants) should be used where a guarantor agrees to cover the student tenant's obligations under the tenancy agreement. 

The Deed creates a legally binding commitment from a guarantor to meet certain obligations of the tenant if the tenant fails to do so.  This can provide a landlord with an additional source of financial protection where a tenant does not meet their obligations under the tenancy. 

When Should A Landlord Ask For A Guarantor?

For landlords, a guarantor can provide an important additional layer of protection where there are concerns about a tenant's income, employment, financial circumstances or ability to meet their obligations under the tenancy, especially student tenants.

A landlord may therefore choose to require a suitable guarantor as a condition of granting a tenancy. Please note, a guarantor does not replace tenant referencing or other landlord checks.

This Guarantee should be used where the Tenancy Agreement names more than one person as the Tenant (i.e., there is a “joint tenancy”). If there is only one tenant, the Guarantee (Single) should be used instead.

In a joint tenancy, all the tenants are “jointly and individually” liable to pay the rent and observe the covenants in the Tenancy Agreement. This means that the entire rent could, in theory, be demanded from one tenant. Consequently, a parent who enters into a Guarantee is guaranteeing the performance of all the tenants, not just their own offspring. Guaranteeing a student joint tenancy is therefore potentially a risky undertaking. 

What Does This Template Cover?

The Deed is designed to guarantee the tenant's obligations under the relevant tenancy agreement. The guarantor agrees that the tenant will:

• Pay the rent lawfully due (including a lawful rent increase);
• Pay other sums lawfully due under the tenancy agreement; and 
• Comply with the tenant's obligations and covenants contained in the tenancy agreement

The Deed also contains an indemnity, which provides an additional contractual protection for the landlord in respect of losses and reasonable and proportionate costs and expenses properly incurred as a direct consequence of the tenant's failure to comply with their obligations.

The Deed is drafted so that the guarantor's obligations continue for the duration of the tenancy.

The Deed been drafted to take account of the Renters' Rights Act and amendments to the Housing Act 1988. In particular, it includes provisions addressing the statutory restrictions on guarantor liability following the death of a tenant.  

Signing The Deed

Please note that the document must be properly executed as a Deed. The guarantor should sign the Deed in the physical presence of their witness, and the witness should then sign the document. The witness should be an independent adult. The landlord and guarantor should not sign in advance and then ask someone to witness the signature afterwards. The witnessing should take place at the time of signing. 

It is important that a copy of the proposed Tenancy Agreement be attached to the Guarantee so that it is absolutely clear what the Guarantor is committing to.

Under the Tenant Fees Act 2019 landlords and/or letting agents in England 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 Deed of Guarantee: Student Tenancy Agreement (Joint Tenants) 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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