Tenants Services - Tenant Guarantee Scheme

The Tenant Guarantee Scheme is a new scheme which enables a Tenant to move into a property without the need of a deposit.

It also covers Landlords with respect of problems that may ensue from a problem tenancy.

Please Read Below for a more in depth explanation of this scheme :-

Anybody wishing to rent private accommodation can apply via Just4Let to join the Tenant Guarantee Scheme. We make various checks. Tenants who can provide assurances of their good standing are entered into the scheme database and issued with a confidential unique membership number. The database includes a photograph and personal details. This information can only be accessed using a unique membership number.
Only tenants with exemplary credit histories and references are accepted into the Tenant Guarantee Scheme and given membership. Those who default on payment of rent or their membership subscription, or who cause damage to property which is not made good (other than normal wear and tear) are removed from the scheme.
Joining the scheme and paying a small monthly subscription fee means tenants are able to provide landlords with a rental guarantee of up to three month’s outstanding rent plus accidental damage insurance for landlord’s contents equal to one month’s rent. Landlords will also be covered for up to £1,000 legal costs should they need to bring possession proceedings. At the start of new tenancies landlords can register their interest in this cover and later, should they need to do so, make claims against the scheme for any losses covered by the scheme.
In the case of joint tenancies (except married couples), each tenant must be a member of the Tenant Guarantee Scheme for the rental guarantee and insurance cover to be available.
Landlords who accept tenants on the basis of their tenant Guarantee Scheme membership and the guarantee and insurance cover this brings and who do not therefore require deposits are exempt from the requirement to participate in a tenancy deposit protection scheme.
Just4Let is an affiliate member of this scheme and retain the sole rights to sign up tenants within Cardiff, Barry and the Vale of Glamorgan. This means that along with the assurance of cover for your property without the need to take a deposit and have to place this within one of the other methods, all tenants will have to approach Just4Let to join the scheme, thus increasing the opportunities of us being able to show, and let your property.

Here is a sample of the Rent Guarantee

The Guarantor confirms, subject to the terms and conditions as set out below, that during the period as stated in the Guarantee Schedule, to provide the services and benefits contained herein.

Some words and phrases in the GUARANTEE and Schedule have specific meanings. Such meanings will attach where words and phrases appear in bold. The meanings are given below.

Administrator Letcare Limited
Agent The intermediary of a Landlord
Any One Claim A Claim including any appeal against a judgement or award consequent upon the same original cause(s) event(s) or circumstance(s) arising from the same Claim.
Claim Any incident for which a Landlord/Agent may call upon this Guarantee within the terms and conditions of this Guarantee for non-payment of the rent due to a Landlord/Agent by the Tenant, up to the maximum amount as set out in the Schedule. Only one claim shall be deemed to have arisen from any incident related by time and cause.
Excess The first amount of any claim as shown in the Schedule from any one incident.
Full Referencing Procedure The procedure carried out by General & Commercial Global Services Limited in order to assess the acceptability of an applicant for a tenancy for the purpose of this Guarantee.
Guarantee The terms, conditions and benefits of this Guarantee issued by the Guarantor providing the benefits as specified in the Schedule for the period specified and any endorsements attached or issued thereto.
Landlord A person or company named in the Schedule as the Landlord who enters into a Tenancy agreement with a Tenant.
Loss of Rent Rent arrears owed to the Landlord of the Property by the Tenant under a Tenancy Agreement provided such rent arrears occur during the Period of Guarantee and shall be calculated on a pro-rata basis from the date of
the first missed payment to the date when full and vacant possession of the Property has been gained or if not so gained during the Period of Guarantee then to the expiration of the Period of Guarantee, whichever shall be the earlier.
Monthly Benefit The amount paid each month by the Guarantor to the Landlord or Agent equivalent to the Rent as set out in the Schedule, in the event of a successful Claim.
Period of Guarantee The Period, as stated in the Schedule for which this Guarantee is valid.
Professional Advisers The solicitor or appropriate qualified person, firm or company appointed under the terms and conditions of this Guarantee.
Professional Costs The costs in respect of a Claim under the terms and conditions of this Guarantee for unrecoverable fees, costs and disbursements reasonably and necessarily incurred by the Professional Adviser and the costs incurred by a third party for which the Landlord/Agent may be liable by order of a court or by agreement with the Guarantor.
Property A residential Property located within the Territorial Limits at the address advised to the Guarantor which has been let to a Tenant under a Tenancy Agreement for residential purposes only and so named on the Schedule as the Property.
Relevant Payment The amount paid as set out in the Schedule for the Rent Guarantee.
Guarantor General & Commercial Global Services Limited.
Rent The amount payable under the Tenancy Agreement as stated in the Schedule.
Schedule The document containing specific details of the Guarantee, issued to the Landlord/Agent in conjunction with this Guarantee Start Date means the date of commencement of the Tenancy to which the Guarantee applies.
Tenancy means an Assured Shorthold Tenancy as defined in the Housing Act 1988 or the Housing Act 1996 or the 2004 Housing Act and corresponding legislation in Scotland and Northern Ireland, and any amending legislation or a
tenancy of the Property granted by the Landlord as a resident landlord or a tenancy of the Property granted by the Landlord by signed contract other than by means of an Assured Shorthold Tenancy (where an Assured Short hold Tenancy can not be applied) but legally binding for a period no greater than six months. The tenancy being for residential purposes only.
Tenant any person or company who has been referenced by General & Commercial Global Services Limited’s Full Referencing Procedure and who has been accepted under that procedure and entered into a Tenancy Agreement in
connection with a Property during the Period of Guarantee and been named in the Schedule as the Tenant.
Territorial Limits England, Scotland and Wales.

For a Landlord/Agent to be eligible for this Guarantee:
(i) The Tenant must be at least 18 years of age
(ii) The Landlord, or the Managing Agent acting on his behalf, must ensure that the following procedures are adhered to.
The Landlord must:
(a) Not allow a Tenant into possession of the Property other than on the basis of an already completed written Tenancy agreement duly signed by all parties;
(b) Ensure that all necessary statutory pre-grant notices are served personally in the correct form on the Tenant prior to the granting of the Tenancy;
(c) Ensure that, prior to the granting of any Tenancy the Tenant has been accepted under General & Commercial Global Services Limited’s Full Referencing Procedure and has complied with any conditions attached thereto.
(d) Not enter into a Tenancy agreement where the General & Commercial Global Services Limited’s Full Referencing Procedure requires a person to stand surety for the Tenant unless such a person complies with condition (c) above and has been legally assigned to the Tenancy agreement;
(e) Not allow any Tenant into occupation until the first month’s full Rent payment has been paid in cash or payment has cleared in the Landlord’s or Managing Agent’s bank account.
For cover to continue under the Guarantee, the Landlord or Agent acting on their behalf must:
(i) Keep clear up to date records, correspondence and accounts.
If during a Period of Guarantee a Claim arises, the Landlord/Agent will provide to the Guarantor indemnity for fees not otherwise recoverable for Professional Costs incurred in the pursuit or defence of civil claims up to the maximum amount as stated in the Schedule.

The Guarantee will not cover any claim:
(a) Where there is an insufficient Prospect of Success;
(b) Where a Claim had commenced or occurred before the Period of Guarantee;
(c) Where the Tenancy commenced before the Period of Guarantee began and the Claim occurs within 90 days of the Start Date;
(d) Where at or prior to the start of the Period of Guarantee the Landlord/Agent in the reasonable judgement of the Guarantor should have realised that the claim might occur;
(e) Where the Landlord/Agent fails to promptly provide evidence or information reasonably required by the Guarantor or the Administrator to establish whether support can be provided for a Claim under the Guarantee;
(f) Where the Landlord/Agent or anyone acting on behalf of the Landlord / Agent is responsible for anything which in the reasonable opinion of the Guarantor prejudices either the Landlord/Agent or the Guarantor’s Prospect of Success in the prosecution, defence or settlement of the proceedings;
(g) Where the Landlord/Agent acts without the consent of the Guarantor or contrary to or in a manner different from the advice of the Guarantor or the Professional Adviser
(h) Where the Landlord/Agent has failed to adhere to the eligibility criteria and terms of cover specified in the Guarantee
(i) Any Claim which is false, fraudulent or arises from any deliberate criminal act or omission of the Landlord/Agent;
(j) Unless the Administrator is promptly notified by the sending of a fully completed claim form, giving a full and truthful account of the facts of the claim, to be received by the Administrator, no later than 31 days after the Claim occurs.
(k) Arising from war, riot, radioactive contamination, nuclear accidents and similar risks;
(l) Where the amount in dispute is less than equal to one months rent;
(m) Arising from:
(i) Subsidence or mining or quarrying activities;
(ii) The compulsory purchase, placing of restrictions or any other action by any government, public or local authority;
(iii) Planning law including the Town and Country Planning Legislation;
(iv) The construction of or structural alteration to buildings or parts of buildings;
(v) Libel or slander or malicious falsehood;
(n) For an application for a Judicial Review or for an appeal unless the Guarantor has given their prior written consent to such costs being incurred;
(o) Falling within the jurisdiction of a Rent Assessment Committee, the Lands Tribunal or the Leasehold Valuation
Tribunal;
(p) Relating to the payment or non payment of service charges as defined in the Landlord and Tenant Act 1985 (as amended); or
(q) For damages, interest, fines or other penalties.
(r) Arising in connection where the terms and conditions of the Tenancy Agreement are in dispute by either party other than for the non-payment of rent.
(i) No expenditure will be made or reimbursed for Professional Costs which are:
(a) Incurred in avoidable correspondence;
(b) Incurred prior to written confirmation from the Guarantor that the claim has been accepted;
(c) In excess of £1,000;
(d) In excess of those for which the Guarantor has given its prior approval in accordance with the terms and conditions of the Guarantee
(e) Recoverable from a court, tribunal or elsewhere; or
(f) Incurred in respect of any claim where the Landlord/Agent is, or but for the existence of this Landlord/Agent would be, entitled to indemnity under any other Guarantee or insurance policy.
(ii) The Guarantor will not be liable for any Excess specified in the Schedule.
(i) Monthly Benefit will be paid by the Guarantor in respect of arrears of Rent owed on a Property by the Tenant to the Landlord/Agent, for up to 3 months or until vacant possession has been gained, whichever happens soonest, subject to the following:
(a) Such arrears occur during the Period of Guarantee and subsequent claim is made during the Period of Guarantee
(b) A claim is promptly notified to the Administrator by the sending of a fully-completed claim form, giving a full and truthful account of the facts of the claim, no later than 31 days after the Claim occurs, and the Professional Adviser decides that there is sufficient Prospect of Success to gain vacant possession of the Property or recover unpaid Rent;
(c) Action is taken promptly to gain vacant possession of the Property or recover unpaid Rent, unless the only reason for not taking action is that the Professional Adviser advises that the expected costs incurred will be more than any money recovered;
(d) The Guarantor has the right at any time under subrogation to pursue Proceedings against the Tenant
Benefit will be paid as stipulated above at a rate of 1/30th of the Monthly Benefit for each continuous day that Rent is in arrears or that vacant possession benefit is payable. The Monthly Benefit will be paid monthly in arrears and will only be paid if the terms and conditions of the Guarantee are met.

The Guarantee will not cover:
(i) Any claim which would be excluded under the Legal Representation section of this Guarantee;
(ii) Rent once the Property is deemed to be vacant,
(iii) Any Claim which is not subject to the implementation of legal proceedings to evict the tenant;
(iv) Rent once the Period of Guarantee has expired.
(v) Any interest on Rent arrears

The Guarantor shall not be liable for more than:
(i) The limit as stated in the Schedule
(ii) 3 months arrears of Rent in total.

The Landlord/Agent shall notify the Guarantor as soon as they become aware of any alteration in the Tenancy or theTenants circumstances which may materially affect the Guarantee.

The Landlord/Agent may be required to pay an additional premium to the Guarantor.
(i) If Rent is overdue the Tenant must be contacted in writing within 7 days requesting payment. If Rent remains overdue within a further 7 days, the Tenant must be contacted in writing again.
(ii) Where the Landlord/Agent becomes aware of a potential Claim under any part of the Guarantee, the Landlord/Agent shall notify the Administrator promptly by sending a fully-completed Claim Form, giving a full and truthful account of the facts of the claim, to be received by the Administrator, no later than 31 days after the Claim occurs, and shall comply with any advice given as to the future conduct of the claim.
(iii) The Landlord/Agent must provide all documentary evidence requested by the Guarantor in the event a claim is made.

If at any time during the claims procedure, the Professional Adviser considers that the Landlord/Agent’s prospects of success in the Proceedings do not warrant continuing with the Proceedings, or that the interests of the Landlord/Agent can be better achieved by other means, the Guarantor shall then be under no further liability to make any payments or bear any costs incured by the Landlord/Agent in respect of the case. The Guarantor shall provide the Landlord/Agent with a written explanation of their decision. If the Landlord/Agent disagrees with this decision.
(i) The Guarantor may make its own enquiries and investigate any claim and may, subject to the approval of the Landlord/Agent (which shall not be unreasonably withheld), attempt to reach a settlement of the Proceedings.
(ii) In any claim where the appointment of a Professional Adviser is appropriate, a Professional Adviser will be nominated to act for the Landlord/Agent by the Guarantor.
(iii) The Professional Adviser must promptly inform the Guarantor of:
(a) Their professional opinion as to the prospects of success of the Guarantee’s Proceedings; and
(b) An estimate of the total costs likely to be incurred in the Proceedings with details of their charging rates.
(iv) The Landlord/Agent must immediately on the appointment of the Professional Adviser pay any Excess shown in the Schedule to the Professional Adviser.
(v) The Professional Adviser must keep the Guarantor fully and promptly informed on the progress of the case, of any change in their opinion of the prospects of success and their estimate of costs during the Proceedings.
(vi) The Guarantor will only meet the Professional Costs:
(a) Which have been agreed in advance by the Guarantor as to both amount and purpose; and
(b) While prospects of success in the Proceedings remain reasonable.
(vii) The Guarantor reserves the right to take over and conduct the Proceedings in the name of the Landlord/Agent at any time.
If the Landlord/Agent withdraws from or discontinues the Proceedings without the prior agreement of the Professional
Adviser then any Professional Costs incurred and third party costs will become the responsibility of and payable by the
Landlord/Agent.
(i) The Landlord/Agent will co-operate with the Guarantor/Administrator at all times and reply promptly to any correspondence connected with the claim.
(ii) The Landlord/Agent shall give promptly to the Professional Adviser all information requested and will meet with them whenever requested.
(iii) The Landlord/Agent or the Professional Adviser must notify the Guarantor should a conflict of interest arise between the Landlord/Agent and the Guarantor.
(iv) The Landlord/Agent shall provide all evidence or information required by the Guarantor and the Professional Adviser and shall keep them fully and continually informed of all developments relating to the Proceedings.
(v) The Landlord/Agent shall, if so requested by the Guarantor, instruct the Professional Adviser to submit his bill of costs for taxation by the court or certification by the appropriate professional body.
(vi) The Landlord/Agent shall whenever reasonably possible attempt to recover costs from a third party and shall instruct the Professional Adviser accordingly.
(vii) The Landlord/Agent will attend any court hearing if required to do so by the appointed Professional Adviser.
(i) The Guarantor shall have direct access to the Professional Adviser at all times. The Guarantor shall be entitled to obtain from the Professional Adviser any information, relating to the Proceedings, whether or not privileged, and the Landlord/Agent shall, if so requested, immediately give any instructions to the
Professional Adviser, which may be required for this purpose. The Guarantor shall be notified immediately in writing by the Landlord/Agent or the Professional Adviser of any offer made. If the Guarantor considers the outcome of the Proceedings to be equally or less favourable to the Landlord/Agent than the offer, the Guarantor shall have no liability in respect of any further Professional Costs.
(i) The Guarantor may cancel this Guarantee at any time by giving 14 days notice in writing.
The Guarantee will terminate on the earliest of the following events:
(i) The end of the Period of Guarantee
(ii) Failure of the Landlord/Agent to pay the Relevant Payment when due; or
(iii) Cancellation of the Guarantee.
Notification of a Claim will not be accepted for any Claim occurring after termination of the Guarantee.
(i) If the Landlord/Agent does not adhere to the terms of the Guarantee, they will not be entitled to any benefit under the Guarantee.
(ii) If the Landlord/Agent gave false or misleading information when they applied for Guarantee the Guarantee will end. The Guarantor will not pay any benefit and make no refund of any amount paid and reserves the right to take whatever legal action required.
(iii) The contract between the Landlord/Agent and the Guarantor is made up of the Guarantee, the Schedule, any endorsement and any other information provided by the Landlord/Agent.
(iv) The Guarantor shall not be bound by any agreement to which they are not a party.
(v) The rights under this Guarantee are not transferable.
(vi) The benefit cannot be paid to anyone else or in any way other than as described in the Guarantee.
(vii) All notices and communications sent or received by the Guarantor will be considered to have been duly sent or received.
(viii) The Guarantor is not bound to give notice when the Guarantee becomes due for renewal.

(ix) This Guarantee will be governed by English Law.

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