What is a guarantor for rent?

When You Might Need a Guarantor

Tenants might need a guarantor if they have concerns about their ability to consistently pay rent throughout a tenancy. Situations that might necessitate a guarantor include starting a new job, having an uncertain income, being a student, or earning a low income. Landlords might also require a guarantor if a tenant has a poor credit history or has recently moved to the UK.

Who Can Be a Guarantor for Rent?

Suitable guarantors are usually close friends, parents, or other relatives, but this is not a strict requirement. Landlords typically prefer guarantors who have a solid credit history, reside in the UK, own property, and have a stable income or significant savings. It’s unlikely that retired individuals or those living abroad would be acceptable guarantors. Potential guarantors will usually have to pass a credit check to ensure their financial reliability.

What Does a Guarantor Agreement Cover?

A guarantor agreement outlines the responsibilities and liabilities of the guarantor, primarily covering rent arrears and property damage costs. It specifies who the guarantee applies to, usually all named tenants in the tenancy agreement, and the duration of the guarantor’s obligation, which typically matches the length of the tenancy. However, there is no fixed rule regarding the duration of a guarantor agreement.

Rights and Responsibilities of Guarantors

Guarantors are obligated to cover any unpaid rent or property damage costs incurred by the tenant during the period covered by the guarantor agreement. They should receive copies of both the guarantor agreement and the tenancy agreement before signing. It’s crucial that guarantors are not coerced or misled into signing the agreement. If tenancy terms change, such as a rent increase, the guarantor agreement might become invalid unless specified otherwise or the guarantor consents to the changes.

Claims Against Guarantors

Landlords can make claims against guarantors if tenants fail to pay rent or cause property damage and do not compensate the landlord. If a guarantor fails to fulfil their obligations, the landlord can seek a county court judgment (CCJ) against both the tenant and the guarantor.

Let Haybrook help

We hope this guide on rental guarantors has been helpful. For further assistance or to find your next rental property, contact your local Haybrook branch. Our team is ready to support you with expert advice and guidance.