There are times and circumstances where it may be necessary for a tenant or group of tenants to have a guarantor. This is because without a suitable income, track record of employment or reliable financial “Blueprint” it is unclear how a tenant might be able to meet the rental payments they contract to make.
So a guarantor is a representative of a tenant, a relative or friend for example, who agrees to co-sign a tenancy agreement and becomes jointly and severally liable for any tenant obligations. This means that if a person who has a guarantor doesn’t pay their rent, the guarantor would be expected to do so. Guarantors are only required in an event that a tenant or one of a group of tenants cannot provide an acceptable financial reference.
To be a guarantor on behalf of a tenant a person must be:
If the person you propose as a guarantor meets these criteria then we will regard them as an applicant guarantor and we will then check their financial referencing in the same way as would be the case if they were applying to be a tenant.
We then ask the Guarantor to sign the Deed of Guarantee at which point they take on all the obligations assigned within the tenancy agreement. This means that the Guarantor would have to pay the full monthly rent should any of the named tenants fail to pay.
The Guarantor will remain associated with the tenancy agreement for the full duration of the tenancy and for any renewed terms unless the tenants are re-referenced satisfactorily and an agreement is made that they can be removed from the tenancy and their obligations associated with it.
Usually, a guarantor is sought in the cases of shared student accommodation and sometimes where sharing professional tenants’ who don’t know each other, take a property together. The important thing to remember is that tenancy agreements of this type are jointly and severally liable which means you need to be confident about anyone with whom you plan to share. It is not possible to modify the terms of our tenancy agreement to alleviate this liability by limiting the liability of a guarantor to just one proposed tenant.
For more information about Guarantors just call us and we can provide you with everything you need.