When it comes to tenant referencing many people are unable to pass on their own, however, they can still rent property by using a guarantor. It doesn’t matter who can be a guarantor for renting a property, as they are a third party person connected to the tenant who can be either a friend, parent or close relative, that agrees to pay the rent to the landlord on your behalf if for whatever reason you are unable to pay it.
How do you reference a guarantor?
Guarantors are required to undergo the same background checks as the tenant they are representing, so that landlords can be satisfied that they are able to pay the rent. These checks will be similar to those used in tenant referencing, such as credit checks etc, to learn more about what tenant referencing involves click here.
Do landlords accept guarantors?
Landlords are comfortable with allowing tenants to use guarantors as they know that either way the rent owed to them will still get paid and they are able to take legal action against the guarantor as well, should this be necessary. For this reason many landlords tend to only accept guarantors who are living in the UK, as this will make it easier for them to carry out legal action should this be required. If for any reason a tenant is unable to produce a guarantor living in the UK, then they do have an option to pay more rent in advance as a security for the landlord.
How much money do you need to earn to be a guarantor?
Usually guarantors are expected to be making at least three times the annual rent price of the property in order to be accepted by the letting agent or private landlord. This amount is higher than that expected of the tenants because guarantors also have their own financial responsibilities and obligations to meet, as well as being able to fund the tenant should they default on the rent.
Can students use guarantors?
Students living away from home for the first time will need a guarantor in order to secure a rented property. This is because they won’t have a previous landlord’s reference and will otherwise fail the tenant referencing process. As student accommodation is usually shared, it is important for guarantors to make sure how much of the rent they will be accountable for.
Often the guarantor will have to be able to afford the whole amount of the rent and not just the guarantee’s portion and the same will apply to any damage caused to the property.
Guarantors should double check the tenancy agreement thoroughly and discuss any clauses that are unclear directly with the landlord or letting agency, before they sign. Once the agreement has been signed, it is a legally binding contract and the guarantor will have no choice but to follow the terms and conditions. However, if your landlord is open to negotiation, it is always worth asking if the guarantor can just be responsible for their guarantee’s share of the rent and any damage caused.
When does the guarantor’s responsibility end?
For the most part, guarantee agreements are usually open-ended and will refer to their tenancy agreement. This is because tenants have the right to renew their tenancy agreement with their landlords and for the guarantor this means their responsibility can also be renewed beyond a fixed term and rent increases will also be taken into account.
A guarantor’s responsibility ends when either the tenant hands in their notice to their landlord, the landlord and tenant mutually agree to end the tenancy agreement or the property comes under a possession order by the courts.