Rent arrears protection service Only My Share has issued a stark warning to parents, after a rising number of claims has seen its loss ratio increase by 350% over the past year. The company is hoping that parents can learn from its experience in order to protect themselves financially, particularly in the face of pandemic-driven government support beginning to fall away.

Under a joint and several clause, the tenant is liable for a housemate’s rent if that housemate doesn’t pay. This applies regardless of whether the tenants even know each other. Students looking to live in houses in multiple occupation (HMOs) and any parents who sign up as their guarantors therefore need to be on the lookout as they are also legally liable.

Only My Share, which is part of the Housing Hand family, is an insurance-backed guarantee service that prevents individuals from being liable for their housemates’ rent, for a fixed cost of £99 per year for protection of up to £10,000. With the guarantee in place, if a landlord demands rent that another housemate owes, Only My Share steps in and makes the payment.

With so many students defaulting on their rent in the past year, Only My Share has come to the rescue time and again – hence the company’s 350% loss ratio increase. Relationship Manager Edmund Fulford comments:

“It’s been an expensive year for Only My Share, but the pandemic has also shown the strength and solidity of the brand. There’s a definite sense now that if we can get through everything that the pandemic has thrown at us then we can survive any challenges that the future may hold.”