The Letting Centre

Company director guarantees own tenancy agreement

Question: 328
I am in the process of setting up a company tenancy agreement on behalf of one of my landlords. He wants a guarantee agreement to be set up as well. The tenancy agreement will be signed by the managing director of the company who will also be occupying the property. He wants to provide the guarantee for the landlord. Can he sign both the tenancy agreement and the guarantee?
Answer:
The managing director will be signing the tenancy agreement in his capacity as an officer of the company and will, as such, bind the company to the tenancy agreement. It will continue to be a tenancy excluded from the provisions of the Housing Act 1988, as amended, if he occupies the property for the better performance of his employment with the company. He can sign the guarantor agreement in his personal capacity, as distinct from his role as an officer of the company. In effect, he is personally guaranteeing the debts and other obligations taken on in the tenancy agreement by the company.
References:	Pages:	Hyperlinks:
Letting Update Journal	April 2001 page 12	letting-update-journal.html
Letting Handbook	Chapter 9	letting-handbook-and-factsheets.html

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