There are many hoops to jump through before you will get your hands on the keys to your new rental property, and a credit check is just one of the necessary aspects of the renting process. Although the majority of these investigations are passed with flying colours, a landlord may request further measures, such as a guarantor, to be put in place for peace of mind. Read on as we explain what a guarantor is and what it means to be one…
From a renting perspective, a guarantor is an individual who agrees to pay the rent for a tenant if they fail to pay it on time and in full. It is a legally binding agreement so it is important to only agree to be a guarantor for someone you trust, such as a close relative. With this said, not everybody is eligible to be a guarantor as there are particular requirements that need to be met in order for a person to qualify. For example, a guarantor should:
- Be a UK resident
- Be over the age of 21 years old
- Have a positive credit history
Whilst it is not essential to be a homeowner, this can add additional credibility to any renting application. Essentially, the role of a guarantor is to provide peace of mind for the letting agency or landlord where there may be concerns that a potential tenant may not pay their rent. As such, students, first-time private renters, individuals with a low income or those with a poor credit history may be required to provide a guarantor in order to proceed with a rental application.
As a guarantor, you will be subject to a credit check in the same way that the tenant was in order to ascertain your financial capability to cover the rent. As such, when the tenant fails to pay the rent, the landlord or letting agency will turn to you for the payment instead. Although most agreements stipulate that a guarantor is only liable for unpaid rent, it is important to read the fine print as some liabilities may extend to damage inflicted on the property too.
Agreeing to be a guarantor is not a decision that a person should make lightly as it involves a liability for a tenants rent should they find themselves unable to pay the fee or simply refuse to cover it. Here at Empanda Properties, we look at every letting application with an open mind, however a guarantor is often necessary for first-time renters so it is important to prepare for this possibility. To find out more information, get in contact with the best letting agency Altrincham has to offer today.