Guarantor Fees

housing, landlord, tenant
Jun 07 | 2021
 

Guarantor Fees

The introduction of the Tenant Fees Act in 2019 aimed to reduce the costs that tenants face at the outset of a tenancy agreement, by banning letting fees and introducing a cap on deposits. But it did little to stop a landlord requesting, in some cases, up to twelve months rent upfront. The requirement for a tenant to provide a guarantor can be an insurmountable barrier to securing a property if they do not know anyone who fits the guarantor criteria; a problem more common with international tenants. More recently through Covid-19, as many tenants’ incomes are becoming less-secure, some landlords are looking to reduce the perceived risk by requiring a larger up-front payment. Even for many with guarantors, this requirement is becoming more common. However, in many cases, securing many months rent upfront will not prevent a landlord from facing further rent arrears, property damage or eviction issues, nor will it protect a tenant from eviction or disrepair disputes. We understand that it can be daunting to enter the rental market as a landlord and to want to protect an investment and we understand as a tenant that there might be concerns about fees, hidden costs, or financial demands from a landlord. At Newbold, we can assist both Landlords and Tenants to guide them through these difficulties or concerns and provide insight and direction to reach a resolution. If you would like to discuss guarantor fees with us or any other matter, please call our dedicated team on 0330 123 1131 or visit our dedicated Landlord and Tenant pages for further information.   Louise McGowan - Graduate Solicitor - Property Litigation
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