Guarantor Information from homes4u – A Guarantor is someone who promises to meet the terms of the tenancy, such as paying rent, if the tenant can’t or won’t.
When a Landlord agrees to accept a tenant into his or her property, they are taking a risk that the tenant will pay the rent for the duration of the tenancy period, look after the property, and move-out when agreed. They understandably want to takes steps to minimise the risk they are taking. For tenants who are in full-time employment, it is usual to perform credit referencing to check affordability. However, this is not suitable for some tenants, such as students, and in those cases, we ask for a Guarantor. When a landlord hands over the keys to their property, one of their most important assets, they are risking more than just loss of rent. A Guarantor is one way of a prospective tenant demonstrating their suitability and securing the property.
All guarantors must have sufficient earnings, through wages, self-employment, pension or investment capital to cover the tenants rental commitment
1). Have a UK credit file and be based in the UK
2). Have no adverse credit
3). We cannot accept benefits or savings as part of a Guarantor’s affordability.
If you are acting as a guarantor where the Tenants have opted for a Zero Deposit, you will need to undergo referencing to ensure you are in a position meet the tenants obligations under the tenancy should they fail to do so. Some Landlords will also require guarantor referencing as additional security.
No, unfortunately not, as you are not bound by UK law and court process. In the event that a tenant cannot provide a Guarantor, a landlord will usually request advanced rent for the period of the tenancy as an alternative.
If you head over to our Secure a Home page you will find sample copies of the tenancy agreement under ‘Information, forms and sample agreement’
The Deed and its contents are not subject to negotiation or change. We are happy to answer any queries you may have.
Download Sample Deed of Guarantee – Click here
The tenancy is a joint and several Assured Shorthold Agreement. A full guide is available on our website. What it means is that all of the tenants on the agreement are joint and severally liable for the whole property, and all of the rent. This means it is not possible to guarantee a specified share of the rent for an individual on that agreement, as they are responsible together for all of the rent. This is a standard type of agreement, and used by most agents and landlords.
It is standard that initially a letter will be sent to that tenant as a reminder. Following on from that, contact will continue through telephone, email and post. If after repeated efforts, the rent remains in arrears, that tenant’s guarantor will be contacted and asked to pay. Should the rent remain outstanding, all of the tenants will be notified, as they are all jointly responsible.
If the rent remains in arrears, it is up to the individual landlord as to the course of action that they take. If the property is in arrears for over two months, they may decide to launch repossession proceedings via the courts. They could launch proceedings to recover any losses via the small claims courts. According to the terms of the tenancy, they can also deduct any outstanding arrears at the end of the tenancy from the tenancy deposit. In the majority of cases the Landlord will make efforts to recover rent from the individual concerned, however, it is within their rights to ask any or all of the tenants and their guarantors to pay an outstanding balance.
Check out our website for our online guide to securing a property. There is information on tenancy agreements, repair responsibilities and deposit regulations, as well as info on retainer payments and standing orders, and downloadable forms and example tenancy agreement.