Renting: What Is a Guarantor?
It is stressful enough to look for a new property. Tenants do not need the extra burden of interviews, references, deposits, and running around chasing the best flat or house in the perfect location for their lifestyle. The process can be intimidating, so there is often a need for some support.
A tenant needs support, but a landlord also needs that support to make sure that their property, their main asset in their life, is looked after, paid for and protected. This can come from insurances, references and finding the best tenants, but it can also come with a tenant offering a guarantor. It is highly competitive, so only the best applicants will win their dream home!
When it comes to being a viable tenant, there are a few standards that you must meet that you may not be able to do by yourself. Some landlords and agencies need a guarantor before offering you a rental agreement.
When you might need a Guarantor for renting?
- If you have a low or no credit record in the UK, one may be required.
- You are a student or you are leasing for the very first time
- Are out of work or have a limited income
- Migrant to the UK from another country
- Leaving a relationship and setting up on your own for the first time in a while
In the event that the renter is unable to pay the rent, the guarantor will be held accountable for the payment. They will also be liable for any property damage. If a guarantor fails to pay unpaid rent or damage fees, they may face legal action. This is why choosing a guarantor is such an important choice. Many landlords may ask for a guarantee to ensure that the rent is paid for the duration of the lease if you are unable to.
Some of the most common guarantor criteria are:
1. The rental Guarantor must be based in the United Kingdom. This is a pretty regular condition, and it is usually because the landlord wishes to fully analyse the Guarantor’s financial credentials and to minimise the possible legal problems of bringing a claim against the Guarantor.
2. In many cases, the guarantor must be able to show that they are capable of meeting the commitments they are accepting. From a landlord’s point of view, there is little point in having a Guarantor who can’t pay for things.
3. A parent or family member does not have to be the guarantor. It may be anybody who is willing to act as a guarantor and matches the standards set by the landlord or agency.
Finding a guarantor can put a tenant head and shoulders above the competition for the flat or the house that they want. It is an extra safety cushion for the landlords, and they will all appreciate it, especially if it is offered rather than requested.
