This three-minute read explains the role of rent guarantors.
When a landlord has a niggle of anxiety over whether a prospective tenant will pay their rent, there is a way they can help protect their investment.
A landlord can ask a tenant to provide a guarantor to ‘guarantee the tenancy’.
Guarantors are often family members or close friends – and a little bit like a human safety net.
If the tenant can’t (or won’t) pay what they owe the landlord, the guarantor has to stump up the cash – or face the landlord in court.
Extent of liability
As with so much in the lettings game, it all depends on the terms of the contract.
While some agreements only cover unpaid rent, others will also cover things like damage to the property.
An agreement should clearly state what is covered and outline the circumstances under which the contract will end.
This is important. If the guarantor has a change of heart mid-tenancy, they can’t simply walk away from their commitment. The agreement is legally binding.
When to use a guarantor
It comes down to the landlord’s discretion, but often a guarantor is used when a tenant:
For more information on any aspect of renting out a property, contact us here at IMS Lettings Solutions.
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