A guarantor for rent is a person who agrees to be financially responsible for rent payments if the tenant is unable to make them. This type of arrangement may be used when the tenant has poor credit or no rental history, making it difficult to rent an apartment on their own. The guarantor typically has good credit and a steady income, which makes them a more attractive candidate for landlords.
In some cases, the guarantor may be required to pay rent directly to the landlord if the tenant is not able to do so. This can be a financial burden for the guarantor, so it is important to be sure that you can make rent payments on time before agreeing to this type of arrangement.
If the tenant is unable to make rent payments and the guarantor is forced to step in, the landlord may raise the rent amount to cover the additional costs. This can be a hardship for the tenant, so it is important to consider all options before signing a lease with a rent guarantor.
Who can be a rent guarantor
A guarantor can be anyone who is over the age of 18 and has a stable income and good credit score. They don’t necessarily have to be a homeowner, but they must be able to cover the rent if the person they’re vouching for can’t.
If you’re having trouble finding someone to be your guarantor, you could try contacting a guarantor company. These companies offer their services to both tenants and landlords and will act as your guarantor for a fee.
What does a guarantor have to do?
The rent guarantor usually has to sign a contract with the landlord or property management company, and they may be responsible for paying the rent for a set period. In some cases, the rent guarantor may also be responsible for damages to the property.
What does a guarantor need to provide?
They’ll need to provide proof of their identity, like a passport or UK driving license. They’ll also have to pass credit checks, which look at their past borrowing behavior and indicates how financially stable they are. If they’re retired, they’ll need to provide wage slips or proof of income.
How to get a guarantor for renting
If you’re having trouble finding someone to be your guarantor, don’t worry – there are a few other things you can do.
You could try a guarantor company like UK Guarantor or Housing Hand. These companies will act as a guarantor for you, but you will have to pay a fee, typically around £300 a year.
Another option is to offer to pay a portion of the rent upfront. By doing this, you’re removing a large element of ‘risk’ and reassuring the landlord that you’re financially stable.
Remember that you can always speak to your parents or a close relative about being your guarantor. They may be happy to help!
When do I need a guarantor to rent?
The answer to this question depends on the rental company’s policy. Some companies may require a guarantor for all rentals, while others may only require one for rentals that are above a certain price point or for rentals that are longer in duration.
A guarantor is typically required when the rent amount is high in comparison to the tenant’s income. For example, if the tenant’s monthly income is $1,000 but their rent costs $2,000 per month, the guarantor would be responsible for making up the difference if the tenant falls behind on their rent payments.
Who needs a guarantor to rent?
If you’re a student or young professional renting for the first time, you may be required to have a guarantor. You’re also more likely to need a guarantor if you’re unemployed or have a low income. If you’re moving to the UK from overseas, you may also need a guarantor.
How long are guarantors liable for?
There is no definitive answer to this question as it can vary depending on the specific arrangement between the guarantor and the party they are guaranteeing. In some cases, the guarantor may be liable indefinitely, while in others there may be a specific period or event that triggers the end of their liability.
It is important to review the terms of any guarantee agreement carefully to understand exactly what is expected of the guarantor.