If you are planning to rent a property, there is a chance that you may be asked to provide a guarantor. A guarantor is someone who agrees to take on your rent payments if you are unable to pay them yourself. In order to formalize this agreement, you will need to sign a guarantor tenancy agreement.
What is a Guarantor Tenancy Agreement?
A guarantor tenancy agreement is a legal contract that outlines the responsibilities of the guarantor in the event that the tenant is unable to pay the rent. The agreement is typically signed by the tenant, the landlord and the guarantor.
The agreement outlines the duties of the guarantor, including the amount of rent that they will be responsible for, the duration of the tenancy agreement, and the circumstances under which the landlord can ask the guarantor to pay the rent.
Why Do I Need a Guarantor?
There are several reasons why a landlord may require a guarantor:
– Lack of credit history: If you have not rented before or have a poor credit history, a landlord may be hesitant to rent to you without a guarantor.
– Lack of income: If you are a student or have recently started a new job, your income may not be enough to cover the rent. In this case, a guarantor can provide assurance to the landlord that the rent will be paid, even if you are unable to cover it.
– Non-UK resident: If you are a foreign national, a landlord may require a guarantor to ensure that you do not leave the country without paying your rent.
How Do I Choose a Guarantor?
Your guarantor should be someone who trusts you and is willing to take on the responsibility of paying your rent if necessary. Typically, a guarantor is a family member or close friend.
Your guarantor should also meet the following criteria:
– Be over 18 years old
– Be a UK resident
– Have a good credit history
– Have sufficient income to cover the rent if necessary
It is important to note that your landlord may have specific requirements for your guarantor, so be sure to check with them before asking someone to take on this responsibility.
If you are planning to rent a property and require a guarantor, it is important to understand the legal requirements of a guarantor tenancy agreement. This agreement outlines the responsibilities of the guarantor and ensures that the rent will be paid even if you are unable to cover it.
When choosing a guarantor, be sure to choose someone who is willing and able to take on this responsibility and meets the requirements set out by your landlord. With the right support, you can secure the rental property you need and avoid any potential financial difficulties down the line.