Student Tenancy Agreement Guarantee and Indemnity (Joint Tenants)
This Student Tenancy Agreement Guarantee and Indemnity (Joint Tenants) is a simple one-page document in which a guarantor (usually a parent) promises to pay the rent if the student tenants fail to do so. The parent also agrees to compensate the landlord for any loss caused by the students breaching 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.
It is usual for landlords to ask for parental guarantees when they let property to students. 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. However, if the students and their parents are sensible and reasonable, a joint tenancy should not cause too many problems.
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).
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.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Student Tenancy Agreement Guarantee and Indemnity (Joint Tenants) is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.