How guarantid supported a good tenant who defaulted on her rent during the coronavirus crisis
Updated: Mar 9
The coronavirus pandemic has been harrowing for many people, not least because of its impact upon jobs and the economy. This is something we at guarantid have observed first-hand.
One of our tenants unfortunately lost her job during the crisis. She had been working in hospitality and found herself without employment for the first time in her life. What’s more, she was not receiving financial support from the governments at the time.
As a result, the tenant was unable to pay her rent. Thankfully, she had used guarantid as her guarantor, and we were able to find a solution quickly.
Resolving rent issues within 10 days
We were initially emailed by the tenant’s rental agency, who informed us that she had defaulted on her rent. Our guarantor agreement says that a tenant’s agency can come to us any time this happens.
“Although our business was created to help with these situations, it’s quite rare that one of our tenants defaults on rent” says Richard Reinhaus, Operations Analyst at guarantid. “This is largely due to our careful vetting of tenants. But when defaults do happen, we work to solve the problem as quickly as possible”.
After confirming that the tenant had defaulted on her rent, we transferred the outstanding amount to her agency within 10 days.
Understanding the tenant’s situation
The next step for guarantid was to arrange for repayment of the funds from the tenant. Although we pay any defaulted rent payments on behalf of the tenant, they are obliged to pay us back in turn.
However, in this situation, we knew that the tenant would not be able to pay us back immediately. What’s more, the tenant was, understandably, experiencing significant stress from being in a difficult situation.
The tenant co-operated fully and accepted her responsibility to pay her debt, so to make things easier for the tenant, we agreed that she could pay us back in instalments over 10 months. This would allow the tenant, who is now receiving a small income, to repay the debt while having money left over for basic living costs.
A fair ending for everyone
With help from guarantid, all the parties involved got a fair resolution. The agency received their rent, and we were able to take some pressure off the tenant at a difficult time.
Given that the tenant had paid her first six months of rent with no problems, we have every confidence that she will fulfil her repayment agreement with us.
“If the same tenant needed to use guarantid again, we would still welcome her application and give her a fair assessment”, says Reinhaus. “Even the best tenants can have bad luck sometimes, and our goal is to never turn a good tenant down when they need a guarantor.”
Visit this page to learn more about how guarantid works for tenants