When does a guarantor’s legal responsibility start and end?

In order to secure a rental unit, you may need a “guarantor.” A guarantor, often a parent or other close family, pledges to cover the rent in the event the renter fails to do so. When renting out a home, a landlord may demand a guarantor who agrees to be financially responsible for any rent that is late or any damage to the property. Please note that landlords have the right to sue guarantors for nonpayment of guaranteed rent. 

Well, whilst we are not scaring you to not be a guarantor there are certain facts that you just need to know. If there is a case in which you wish to terminate the obligation as a guarantor for someone, we are here to tell you when such responsibility starts and ends.

The guarantor’s responsibilities will commence on the day of the lease signing. In terms of when the guarantor’s liability will come to an end, the assurance agreement, dependent on how it is constructed, will most probably be open-ended. Yet, the contract may stipulate that the guarantor will continue to be accountable if the lease is prolonged beyond the original period of six or twelve months. However, Guarantors are sometimes misinformed about the duration of the tenancy guarantee, expecting that it stops at the conclusion of the stipulated period of the rental so it is best to make terms clear with the renter you are guaranteeing for to avoid lawsuits.

Who may act as a guarantor?

If someone is willing to stand as a guarantor, they can. The likelihood of a guarantor being authorised increases if they meet the following criteria: good salary; solid credit history; no bankruptcies or Court Case judgements; existing homeownership; and UK residence. It is common practice for the guarantor to be a close personal friend or family member of the renter.