What Is A Guarantor?

September 1, 2022

There are several reasons why a tenant might need a guarantor, and the request can be made by either the landlord or the letting agent handling the tenancy. If you’ve been asked to provide a guarantor or to be one but aren’t sure what they are or what they do, you’ve come to the right place.

This post will share with you all you need to know.

Before we get into the specifics of guarantors and what is expected of them, let’s start with the most basic of all questions…What exactly is a guarantor?

What Is A Guarantor?

A guarantor is, as one might imagine, someone who is willing to guarantee that the rent will be paid if the tenant fails to do so. However, guarantors do not have to be individuals (though they frequently are…hello, parents), as rent can also be guaranteed by a company, charity, or organisation.

Having a guarantor in place effectively provides landlords with a safety net in the event that the tenant fails to pay rent. Being a guarantor is a legally binding contract, thus, individuals accepting the duty must have complete trust in the person they are backing.

When might a tenant require a guarantor in order to rent?

As we mentioned in the introduction, there are a few reasons why a tenant may be required to obtain a rent guarantor. The following are the most common:

If you are renting for the first time or have no previous landlord references
If you are new to the UK
If you are out of work
If you have a limited income
If you have a poor credit history (or none at all)

What is the guarantor responsible for?

The guarantor is obviously liable for unpaid rent, but some tenancy agreements may go beyond that. Depending on the terms of their contract, some landlords may demand the guarantor to be the tenant’s financial support system for other restrictions, such as any damage done to the property.

Because each tenancy agreement is different, the only way to be certain of your liability as a guarantor is to read the contract carefully before signing anything.

Who can act as a guarantor?

As we stated in the ‘What is a guarantor?’ section above, a guarantor might be either an individual or a company, charity, or organisation. In actuality, there are no legislative limitations for who can or cannot perform the function; it is more up to the landlord or letting agent’s judgement and who they believe appropriate based on their own criteria.

However, there are a few points on which almost all landlords will agree:

Guarantor must be based in the UK – While this is not a legal requirement, practically all landlords will prefer that the guarantor be based in the UK. This is primarily for convenience, as financial records will be easier to inspect, but it also makes it easier for the landlord to take legal action if necessary.
Must be able to demonstrate financial stability – It goes without saying that the guarantor must have adequate financial clout to cover any scenario. This is frequently shown by the guarantor being a UK homeowner, although it can be demonstrated in other ways as long as they satisfy the landlord.
The guarantor is willing to submit to background checks – It’s one thing for a guarantor to declare they can cover all fees, but it’s unlikely that a landlord will take their word for it. Checks will be run, and we’ll look at what they’re likely to be in the following section.

What types of checks might a guarantor expect?

In a nutshell, a guarantor can expect to have the same checks conducted on them as any tenant.

While the specific checks may differ from landlord to landlord, guarantors can expect their credit history, employment records, and whether or not they have any CCJs against their name or have recently been declared bankrupt to be scrutinised.

A Land Registry Ownership of Property check may also be performed on homeowners.

Can my landlord get in touch with my guarantor?

Yes, but only if you fall behind on your payments. Your landlord should not contact your guarantor for other reasons, such as noise nuisance, which will likely relieve individuals who have their parents listed as guarantors!

What if the guarantor becomes ill or loses their job?

We all know that life is full of surprises, and guarantors are no exception. So, what happens if the worst occurs? Unfortunately, the liability remains with the guarantor. They would still be required to cover the charges they agreed to bear when signing up as a guarantor.

Even extremities like bankruptcy and death may not exonerate them. Those who file for bankruptcy may discover that the landlord is listed as a creditor, and the debt may be recovered from the guarantor’s estate if they die.

In summary, deciding to be a guarantor for rent is no laughing matter and should be handled seriously.

Rooms in Kent can assist you regardless of your position on the renting fence, whether as a tenant or a landlord. We’ve been in business since 2011, so we know a thing or two about the local houseshare market.

Trust is as vital for tenants as it is for landlords, and our longevity allows you to rent or let with confidence through us. We are also completely accredited, having been approved by all of the industry’s major governing bodies, including:

Our boutique approach to co-living also allows us to provide you with the respect you deserve…at Rooms in Kent, you are never just a number. Communication is essential to our ongoing success, and our expert lettings team will be with you every step of the way.

by Rooms in Kent