As a new tenant, you might come across many phrases you don’t know about. The good news is that we’re here to help at Intus Lettings. In this blog, we’re answering the question, what is a guarantor?
The process for new tenants
Whether you’ve been a tenant before or it’s your first time, it’s good to familiarise yourself with the process. Usually you will decide on a budget, how much space you need and your desired location before you start the search. This helps you ensure that you are moving into a property that you would like.
When you find a property that fits your criteria, you should contact the letting agent to organise a viewing. Read our blog on what to look for when viewing a rental property.
It’s a good idea to read the property description in detail and come up with some questions you might like to ask the letting agent or whoever is showing you around the property.
Moving in with the right person or people is very important. Read our blog on finding the perfect flatmate, which offers plenty of tips to make life easier for you.
When you successfully organise to live in a property, you will receive a tenancy agreement. Rental agreements outline your rental payments, rules you must follow and more. You will be required to sign this document and keep a copy of it. You may notice that the rental agreement asks for a ‘rent guarantor’.
What is a guarantor?
If you notice that your tenancy agreement is asking for a guarantor then there is no need to panic. This is quite common practice when it comes to letting a property.
A guarantor is a person who will be responsible for paying your monthly rent if you cannot. Having a guarantor offers the landlord more protection as it means they will not miss out on rental payments if you cannot complete them.
Who has to provide a guarantor?
It completely depends on your personal circumstances whether or not you will be expected to provide a guarantor. Here are some common scenarios where a guarantor may be requested.
- Students
- Those moving from overseas
- First time renters
- Those with a low income
- Those with bad credit history
- Those who are unable to provide references from a previous landlord
- Those who have become bankrupt or have CCJs against them – this could be due to failing to complete a loan agreement
Who should I choose as my guarantor?
It’s common for tenants to select a parent or family member to be their guarantor. However, a landlord may request that an eligibility check be completed on them too. This is likely to be a credit check and means that the landlord can be confident that they will be covered if you cannot pay.
The check may assess the guarantor’s credit history and financial stability to ensure that they can be legally responsible if the tenant falls behind on payments. For someone to act as a guarantor, they must have sufficient income and a good credit file.
Read our blog on: what are rental checks? This involves checking references and your credit record. If you have good credit history, you are more likely to be accepted.
Usually, your landlord will only accept a guarantor if they are living in the UK. Otherwise, it opens the door to more issues that could arise from unpaid rent.
What happens if my guarantor cannot pay?
If you are unable to pay your rent, you must communicate your financial situation with your landlord as soon as possible. If you have a guarantor, then they will be expected to take financial responsibility and pay the rent.
If they also cannot pay the rent then the landlord can take them to court. In some cases, a guarantor can also be responsible for other fees, such as the cost of repairing damage to the property. The rules of the guarantor loan will be outlined in the guarantor agreement.
At Intus Lettings, we’re here to help you with the entire renting process. Contact us to find your next rental property.
