FOR LANDLORDS & AGENTS
GUARANTOR TRUST provides a robust rent guarantee backed by funds held in trust. Here's everything you need to know about how our service works for you.
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FREQUENTLY ASKED QUESTIONS
Common questions from landlords and letting agents about our guarantee service.
How much does the guarantee cover?
We will provide a guarantee by reference to the rent and based on the cash amount a tenant or their family member has deposited in trust. The guarantee will specify the amount that our trustee will indemnify.
Can we be a beneficiary of the trust?
No. Under current legislation we take the view that this could fall foul of rules preventing "advance rent" from being deposited with third parties. As a landlord you are protected contractually under the guarantee, which is triggered if you follow a simple process in the event of a tenant's rent falling into arrears.
Is the guarantee secured?
No. Under current legislation we take the view that it would not be safe for a landlord to take a legal charge over money held in the trust. However our trustee will confirm that it holds sufficient money to cover the guarantee.
Is there any additional comfort you can give us?
Yes of course. We can provide a letter from our bank / an independent firm of accountants verifying that our trustee holds sufficient money to be "good for" the guarantee.
WHAT HAPPENS IF A TENANT DOESN'T PAY RENT WHEN IT'S DUE?
There's a simple process that you'll need to follow. You can repeat this process more than once if necessary (of course we hope it isn't), and our trustee will reimburse you. The maximum total reimbursement that our trustee will pay is the amount specified on the guarantee.
Send written demand to tenant
Send a written demand to the tenant stating the arrears and stipulating that the payments must be brought up to date. Keep a copy of this correspondence.
Wait 21 days
Allow the tenant 21 days from the date of your written demand to bring payments up to date.
Email us with copy of demand
If the tenant does not pay all the arrears due within 21 days, email us attaching a copy of your demand to the tenant.
Complete declaration form
We will make enquiries with the tenant and provide you with a declaration form to complete and return to us, in order to "call in" the guarantee.
Trustee reimburses you
Our trustee will reimburse the arrears up to the maximum amount specified on the guarantee.
WHAT HAPPENS WHEN A TENANCY ENDS?
When we receive notice from you or a tenant that a tenancy is ended we will ask you to sign and return a "release form" which brings our trustee's obligations as guarantor to an end.
Assuming there are no arrears that could trigger you claiming on the guarantee, we would ask that you return the signed release form promptly.
If there are arrears, please notify us promptly so that we can maintain the guarantee and retain the necessary funds in the trust.
If we do not hear back from you within 14 days of contacting you at the end of a tenancy, the terms of the guarantee allow us to interpret your silence as consent to release the guarantee. It is therefore very important that you tell us promptly if there remains any rent owing to you.
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Have questions about how Guarantor Trust works for landlords and letting agents? We're here to help.
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