Table of Contents
A guarantor is someone who agrees to pay your rent if you don’t pay it, for example a parent or close relative. If you don’t pay your landlord what you owe them, they can ask your guarantor to pay instead. The agreement sets out the guarantor’s legal obligations.
Why is a guarantor needed to rent?
The main reason landlords might require you to have a rent guarantor is because they feel there is a risk you might not pay your rent, on time and in full. Because of this, student tenants are typically required to provide a guarantor. Where a credit check result isn’t as strong as the landlord would like.
Does a guarantor have to pay the rent?
A guarantor (usually a parent or guardian) will agree to take joint responsibility for the rent for the property if the tenant fails to. Guarantors are required to pay any rent arrears (if the tenant does not pay) and for any damages costing more than the deposit.
Can anyone be a guarantor for renting?
It can be anyone who is prepared to be the Guarantor and who meets the criteria required by the landlord or agent. In the case of most students it does tend to be a parent or family member, because they are the most likely to accept the substantial financial commitments of being a rent guarantor.
What do landlords look for in a guarantor?
A rent guarantor is a person or a company that will vouch for your rent payments, bills, taxes and damage done to the property during the tenancy period. The guarantor is legally bound to cover all these debts and any other the tenant has accumulated in relation to their landlord.
Do all landlords require a guarantor?
Most landlords and letting agents require tenants to have a Guarantor in order to qualify as a suitable tenant. Some tenants – for one reason or another – can’t arrange a Guarantor. The reality is, a guarantor is a prerequisite for every sensible landlord, and rightly so.
How can I rent without a guarantor?
You may be able to persuade your landlord to waive the need for a guarantor by offering them a larger deposit or 6 months’ rent in advance. This may give them the greater sense of security they are looking for. However, neither option is ideal and you may not have the money to make such a suggestion.
How long does a rent guarantor last?
How long a guarantor agreement lasts. There’s no general rule about how long a guarantor agreement lasts. It depends on what’s agreed between the landlord and the guarantor. Your guarantor should speak to the landlord if they don’t want their liability to continue beyond the end of a fixed term tenancy.
What happens if guarantor Cannot pay rent?
In the event that your guarantor is able to technically pay, but decides not to when they have been called upon to do so, then they are breaking the contract that they signed to with the lender and borrower. If no payment is made, the lender has the legal right to start a court order in order to retrieve the debt.
Is it safe to be a guarantor?
Almost anyone can be a guarantor. It is advisable to only by a guarantor for someone you trust, and you think you can trust with their money. You will need to be over 21 years old, be financially stable and have a good credit history to be a guarantor.
Does being a guarantor for rent affect your credit?
While inquiries generally cause the credit score to drop, the damage is negligible. Acting as a guarantor won’t appear on your credit report itself, but the inquiry from the landlord will appear on the report. “A prospective lender will ask for an explanation and how much the rent is,” Ulzheimer says.
Can a guarantor be unemployed?
Not everyone needs a guarantor. Reasons you may be asked to provide a guarantor include: being unemployed. having recently started work.
Does being a guarantor affect credit?
When you become a guarantor, if the borrower maintains the payments, there will be no effect on your Credit Report or Credit Score. This will be recorded at all relevant Credit Reference Agencies and will mean that the person you are opting be a guarantor for could affect your ability to get credit in the future.
How long do guarantor checks take?
Goodlord Referencing aims to complete your reference within 2-3 business days. The process can often take longer if information from your application is missing. You can log into your Goodlord account at any stage to check the progress of your reference and see what may be causing a delay.
How much do you have to earn to be a guarantor?
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.
Can you remove yourself as a guarantor?
Can a guarantor stop being a guarantor? Sadly no. The reason that you cannot be removed from the loan agreement is because the person who guarantees a loan plays a huge role in the application process.
Can a guarantor end a tenancy?
The guarantor has no right to end the tenancy, so they should consider an agreement that is limited to an initial fixed term. Guarantors should be given a copy of the tenancy agreement, which can be checked for rent review clauses. It may be possible to negotiate a payment of rent in advance instead of a guarantee.
