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Liability on the Guarantor Agreement

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Iíve suggested my guarantors sign the recommended guarantor agreement provided on the RLA site (thanks for that, btw!). As one of the guarantors is a solicitor and two of the prospective tenants are trainee lawyers, theyíre being pickier over the contract that Iíd expected.

The three guarantors for the three prospective tenants are unwilling to take on unlimited liability for damages. Theyíve requested that they are removed from any liability and that the tenants instead take out an insurance policy in case of any damages and lodge this with me.

I can see their point Ė no one guarantor wants to be responsible for all damages to the flat Ė but then again, I donít want to be out of pocket and am concerned that using an insurance policy could prove complicated later on down the line. I obviously have landlordís insurance myself, so am wondering what happens if thereís a crossover of policies. And what if damages were made to something that wasnít covered by the policy?

Iíd like to know if anyone has been in a similar situation before and what your recommendation is. Apologies if this is a fairly basic question, but as a new landlord, Iím keen to get things right from the start!

Thanks for your help.

08/10/2012 00:00

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