A guarantor is someone who will take responsibility for the tenant’s obligations, including paying rent, if the tenant is unable to fulfil their obligation.
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A guarantor is generally required if a prospective tenant fails their referencing checks. If questions have been raised over the affordability or the tenant has been in arrears before then a guarantor is your insurance policy against any tenant default. They will act as a tenant support and are normally a parent or family member.
The guarantor must be referenced and the following checks are carried out:
- ID and proof or address
- Home ownership check
- Full credit history search
- Rent affordability calculation
It is very common for the guarantor to remain on the tenancy for as long as the tenancy lasts. A guarantor cannot remove themselves from a tenancy agreement, this must be done by the landlord or agent only when a contract is renewed.
If a tenant finishes a fixed term contract and continues as a periodic (month to month) contract then the guarantor will still remain in place, this does not change.
Not only guarantors are responsible for any default on rent but they are also legally bound to accept any other liabilities made by the tenant such as damages if there has been no resolution with the tenants.
Once all checks have been made and approved the guarantor MUST sign the tenancy agreement alongside the tenants.
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