Too many cooks -and the need for a voice of reason
Landlords will be well aware that having a guarantor is good practice to safeguard against rent arrears. But when they get involved in arguments about why rent arrears should not be owed, this can leave landlords having to fight their battle on more than one front. What can you do if a guarantor refuses to pay?
Dean’s story
Dean had two student tenants in a property that was let for a 12-month fixed term. At the end of their first term the tenants moved out – one tenant was pregnant and the couple left their university course to move in with relatives.
Dean had done all the right things in terms of referencing his tenants, and had arranged for one of the tenant’s parents to act as guarantors. The tenants had not given notice before leaving, and Dean had pointed out to them that they were liable for the rent until the end of the fixed term. However, what seemed a relatively straightforward scenario proved a difficult one to resolve.
Reasons not to pay
The tenants had advised that they had no income and no means to pay. Meanwhile, the guarantors considered any claim against the tenants was unreasonable, as they were a young couple with no income who were expecting a child. In short, both tenants and guarantor were not open to paying anything. Dean felt strongly that none of this was his fault, and that he was owed the rent claimed.
At this stage Dean had a couple of options. He could have started legal proceedings and chased the rent arrears through the courts. But this would take time and money that Dean could ill afford. Understandably, writing the debt off was too much for Dean and he informed the tenants and guarantors of his intention to involve the Property Redress Scheme tenancy mediation service to come to a solution.
We’re here to help everyone
After agreeing to mediation, it came to light that Dean had in fact relet the property two months after the tenants had left. We were able to explain to Dean that it was not possible to claim rent until the end of the fixed term of the tenancy once the property had been relet. We were also able to explain to both the tenants and the guarantors that they were liable for rent having left without notice, but that Dean could only claim unpaid rent up to the date the property had been relet. This was a welcome relief to them, having been assuming that they were facing a claim for significantly more.
As a result of mediation, the guarantors offered slightly less than the balance of rent to the date the property was relet, payable in a single lump sum, and Dean accepted that this was the best solution.
Why you should use mediation
Evicting tenants and chasing rent arrears through the court takes time and money. What’s more, the courts will expect you to try and resolve matters before using the courts. The Property Redress scheme tenancy mediation can resolve the situation amicably:
- It’s quick – we typically reach an agreement in 10 to 15 working days
- It works – tenants work with us once they realise we’re not just on the landlord’s side
- It saves you time, money and stress – we find fast practical solutions without incurring expensive court proceedings
Call 0203 907 1857 to find out more or start your mediation.
