Being a landlord is not an easy job, and it comes with several responsibilities. One of these responsibilities is finding the right tenant for your property. In some cases, you may require a guarantor to ensure that you have a reliable backup plan in case the tenant is unable to meet their rental obligations.

This guide is designed to help landlords understand who can be a guarantor and the requirements for the role.

Who can be a Guarantor?

A guarantor is typically someone who agrees to take financial responsibility for a tenant if they are unable to pay rent or any other financial obligations related to the tenancy agreement. In the UK, a guarantor can be:

• A Parent or Guardian: Parents or guardians are often the first choice for tenants when looking for a guarantor. They are usually reliable and have a vested interest in ensuring that the tenant is financially responsible.
• A Relative or Friend: If a parent or guardian is not an option, a relative or friend may be a suitable choice. However, it’s important to ensure that they are financially stable and have a good credit history, which you can see by carrying out a reference check. 
• A Professional Guarantor: Professional guarantors are becoming an increasingly popular option. They are typically companies that provide financial backing to tenants who may not meet the financial requirements of the tenancy agreement. However, this service does come with a fee.

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Requirements for a Guarantor

Once you’ve identified a potential guarantor, it’s important to ensure that they meet the following requirements:

• UK Resident: The guarantor must be a UK resident and have a permanent address in the UK.
• Good Credit History: The guarantor must have a good credit history and be able to demonstrate that they have the financial means to take on the responsibility.
• Stable Income: The guarantor must have a stable income and be able to demonstrate that they can meet the financial obligations of the tenancy agreement. Their earnings will also need to be UK based.
• Willingness to Take Responsibility: The guarantor must be willing to take on the responsibility of the tenant’s rent share and understand the financial implications of the role.

FAQs

1. Is it necessary to have a guarantor for every tenant?

No, it’s not necessary to have a guarantor for every tenant. It’s typically only required if the tenant is unable to meet the financial requirements of the tenancy agreement.

2. Can a tenant act as their own guarantor?

No, a tenant cannot act as their own guarantor. The purpose of a guarantor is to provide financial backing to the tenant in case they are unable to meet their financial obligations.

3. What happens if the guarantor fails to meet their obligations?

If the guarantor fails to meet their obligations, the landlord may take legal action to recover the outstanding debt.

Conclusion

In conclusion, finding the right tenant for your property is essential as a landlord, and having a guarantor can provide additional peace of mind. When selecting a guarantor, it’s important to ensure that they meet the requirements and are willing to take on the responsibility.

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