Guarantor's Explained

Guarantor’s Explained

What is a guarantor? 
A guarantor for renting is someone that agrees to pay the rent should the tenant be unable to afford to.

Who can be a guarantor? 
A guarantor must be over the age of 18 and will be subject to referencing so generally they need to have a good credit history and an income that exceeds that of the rental affordability criteria. Due to the responsibility that comes with being a guarantor it is typical for this to be a relative or close friend of the tenant.

When would someone need a guarantor?
There are lots of instances where a guarantor would be beneficial for a rental application, essentially it is in any situation where an applicant’s ability to pay the rent could be doubted by the referencing company or landlord. Examples of where we have made use of a guarantor in the past include; where an applicant is recently self employed and does not have a year accounts to prove income, where an applicant is on a zero hour contract and therefore has no guaranteed income, where an applicant has a poor credit history or is renting for the first time so has no previous landlord reference.

Summary 
Overall, being a guarantor is a very generous offering and for an applicant, it goes a long way to aid in their search for a property (particularly in the current market where it can be very competitive). However, for the guarantor, it can be a huge undertaking, one that could have major legal and financial implications if rental payments are not met which is why we advise anyone considering it to this give this careful consideration beforehand.