What is a guarantor?
Posted on 20th September 2021 at 11:22
If you plan to take a property on rent in the UK you will need to find a resident guarantor. What is the need for a guarantor and what they do? A guarantor stands surety to pay any rent arrears due if the tenant defaults although there is more to being a guarantor.
What is a UK Guarantor responsible for?
In layman’s terms, a guarantor in the UK agrees to be responsible for any loan or credit an individual might take. In the case of a rent guarantor, they take the responsibility to cover the rent dues if a tenant is not able to make payments. In certain instances, the guarantor also agrees to pay for any damages to property as part of their rental guarantor responsibility.
When does one require a UK Rent Guarantor?
Many landlords insist on having a rent guarantor being part of a rental agreement deal when they decide to let out their property. This is a common practice adopted by almost all UK landlords to ensure that the tenant they intend to rent their property will not default in their payments or to cover property damages. This does not in any way indicate a lack of trust or is a judgment of the tenant’s financial status in any way. It just serves as security and for peace of mind for the landlord.
Who is eligible to become a Rent Guarantor?
The challenge is to find a person that is willing to become a guarantor for a property in the UK when planning to rent a property in the country. There are numerous guidelines that a guarantor must meet to qualify for the position like:
Have a very good credit history
Must be a resident of the UK
Falls within the ages of 18 – 75
Have the financial resources to pay the rental dues
Some of the advantages of opting for a professional rent guarantor service:
When you plan to rent a property in the UK, a letting agent will want to ensure your financial means before they show you any property. In such a situation, you need to be able to furnish a rental guarantor as surety.
In cases where a tenant is unable to offer a rental guarantor, the property owner might want a cumulative sum of rent paid in advance. This could range anywhere between 6 -12 months. Although, there are certain instances when despite paying a lump sum of rent in advance, the property owner might still insist on having a local rental guarantor secure the rented property. As terms and conditions vary between accommodations providers you need to check upfront.
The fact is to invest a large sum of money in advance as rent could leave the tenant in a difficult spot. If there is any emergency, damage, or the property faces repossession it could pose an issue. Plus, if there is maintenance work to be carried out it could leave the tenant in a weaker position to bargain with the property owner. Using a professional rental guarantor service will help any prospective tenants to be protected from such risks.
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