A tenant’s family member or friend who meets certain eligibility criteria can be a guarantor for them. When renting a place, landlords often require tenants to provide a guarantor who can be held responsible for paying rent or damages if the tenant fails to do so.
A guarantor is a person who agrees to take on the financial responsibility for a tenant’s obligations under a lease. Not everyone can be a guarantor, as certain criteria must be met. Typically, a guarantor must be over 18 years of age, have a good credit history, stable income, and own property.
Additionally, some landlords may require that the guarantor lives in the same country or city as the tenant. We will delve further into who can be a guarantor for a tenant.
Understanding The Role Of A Guarantor In Rentals
Definition Of A Guarantor
A guarantor is a person who agrees to take responsibility for ensuring that a tenant upholds their rental agreement.
This means that in the event that the tenant is unable to meet their rental requirements, the guarantor will step in to cover the costs.
The guarantor could be anyone, such as a friend or family member.
Why A Landlord Requires A Guarantor
A landlord would typically require a guarantor for a range of reasons, including if a tenant has a poor credit history or if the tenant has no rental history.
As a result of these factors, the landlord may consider the tenant as a high risk as they may become unable to pay their rent.
In such cases, a landlord may require a guarantor to provide a level of security and assurance that rent will be paid.
How A Guarantor Protects A Landlord’s Interest
By having a guarantor, landlords can protect their interests and ensure that they are not left with unpaid rent.
In the event that the tenant cannot pay the rent, the guarantor becomes liable for the payment.
Having a guarantor can provide landlords with peace of mind, knowing that they have a reliable safety net in place.
Qualifying As A Guarantor For A Tenant
Who Can Be A Guarantor For A Tenant
Have you found the perfect rental property, but don’t meet the landlord’s criteria for being a tenant?
Fortunately, if you have a guarantor, you may still be able to rent the property. But who can be a guarantor for a tenant?
Let’s delve into the qualifications someone needs to become a guarantor so that you can be sure that you or someone you know meets the requirements.
Income Requirements For A Guarantor
To be a guarantor for a tenant, you need to have a stable income source. The landlord needs assurance that if the tenant is unable to pay rent, the guarantor can step in and make the payments that the tenant cannot.
Therefore, potential guarantors will need to earn at least 30 times the monthly rent amount, whether that be through wages, a pension, or another verifiable income source.
An income assessment is done by the landlord or letting agent before accepting the tenant and guarantor.
If the guarantor’s income isn’t enough to cover the rent, or if they have a history of debt, they may not be eligible to become a guarantor.
Credit Score Requirements For A Guarantor
A guarantor with a good credit history is also a necessity when becoming a guarantor for a tenant. The landlord or letting agent will look for someone with a positive credit report and a history of timely payments.
A good credit score shows the landlord that the guarantor is financially responsible and trustworthy.
The landlord may check the guarantor’s credit score to determine whether they meet the requirements. If the potential guarantor has a poor credit score, they may not be eligible to be a guarantor.
Legal Requirements For Becoming A Guarantor
A guarantor needs to be at least 18 years old, a UK resident, and have a good credit history.
They must also be willing to be legally liable for the tenant’s rent and any property damage or other costs that may incur.
Before becoming a guarantor, an individual must read and sign a legal document. This document outlines a guarantor’s responsibilities and risks, including the obligation to pay the tenant’s rent if they are unable to do so.
Alternatives To A Guarantor For Tenants Who Don’t Qualify
Not everyone can qualify to be a tenant’s guarantor. In such cases, there are alternatives available that can help a tenant secure their rental property.
- Pay a larger deposit: If you can’t find a guarantor, you may be able to pay a larger deposit as a form of security for landlords. This will reduce the risk of you defaulting on your rent payments.
- Offer a rent advance: Some landlords may accept a rent advance payment, where you pay the first few months’ rent in advance to prove your financial stability.
- Rent guarantor scheme: If you can’t find someone to be your guarantor, you may be able to get a rent guarantor scheme. These schemes are often offered by local councils or charities. They act as a guarantor for tenants who can’t find one, with the tenant paying a small fee.
Having a guarantor can be beneficial for tenants who do not meet the landlord’s requirements for renting a property.
As a guarantor, one needs to have a stable income source, a good credit score, and the willingness to be legally responsible for the tenant’s rent and other costs.
If a guarantor isn’t an option, there are alternatives like paying a larger deposit or joining a rent guarantor scheme.
Frequently Asked Questions For Who Can Be A Guarantor For A Tenant
What Is A Guarantor And Why Is One Needed?
A guarantor is responsible for paying the tenant’s rent if they can’t. Learn more about why one is needed.
Can A Family Member Be A Guarantor For A Tenant?
Yes, family members can act as guarantors for tenants. Find out the requirements and limitations.
Do Guarantors Need To Have Good Credit?
Yes, guarantors must have good enough credit to qualify. Discover how credit scores can affect the process.
What Happens If The Guarantor Can’t Pay?
If the guarantor can’t pay, they will be responsible for any outstanding balance. Learn about the consequences.
Conclusion
As we wrap up this discussion on who can be a guarantor for a tenant, it is clear that being a guarantor is a significant responsibility that requires careful consideration.
Ideally, a guarantor should be someone with a stable income, a good credit history, and a strong relationship with the tenant.
They should also be willing to take on the financial burden if the tenant is unable to meet their rent obligations.
It’s crucial to keep in mind that being a guarantor can have its risks, and it’s essential to understand the legal and financial obligations before agreeing to be one.
Ultimately, finding a reliable and trustworthy guarantor can make all the difference in securing a rental property.
As a tenant, it’s essential to communicate openly with your potential guarantor and ensure that they fully understand their role and responsibilities.
With the right support, securing a rental property can be a smooth and stress-free experience.
Reference: https://www.citizensadvice.org.uk/housing/renting-a-home/using-a-guarantor/