Reasons to Use a Guarantor on a Lease
You might not have good credit. You might be self-employed. Maybe you have a low income and you need to move house in a rush. There are several reasons why a guarantor could be useful to people, but it is a risk, both to them and to you, and to your relationship.
It is much easier for tenants to get a lease if they have a guarantor, and there are companies, and people who do it as a business. It is far simpler for landlords to take legal action against a UK resident, hence a guarantor who resides in the UK is preferred. If you are an international student or otherwise travelling from afar, you may run into difficulties as a result of this. Without a UK-based guarantor, you may be required to make larger up-front rent payments. There is an increased risk on the landlord to missed payments, or to tenants leaving before their contract expires.
A rental agreement should be straightforward: the renter agrees to pay rent on a monthly basis and to pay for any damages. However, as many landlords have discovered through experience, many renters who seem to be responsible fail to pay their full rent or are somehow financially irresponsible.
Reasons to Use a Guarantor on a Lease?
1. If the renter has poor credit or no credit as all.
2. There is no rental history. Landlords want renters with a track record of being dependable tenants who can make on-time payments and keep their rental units in decent condition.
3. Perceived inability to satisfy qualifying standards but able to pay rent commitments.
4. The renter’s job history is untrustworthy.
5. A lack of sufficient finances or a stable source of revenue. Many landlords may require formal documents to indicate that you can shoulder the load of yearly rent expenditures and then some.
Landlords have valid reasons for requiring a guarantor if there is something unfavourable about the renter. Thus, if you are a renter who is having difficulty renting a house despite having adequate income to meet rent payments, you may want to consider using a guarantor service in the UK. These are the kind of businesses that may help you out to avoid making large up-front payments for rent, because these businesses often cover the whole duration of the lease.
