When letting a property, rent reliability is a top concern for landlords. Enter the guarantor—a third party who can provide an extra layer of protection, especially when tenants don't meet your usual affordability criteria.
A guarantor is often a parent, relative, or close friend who agrees to cover rent or damages if the tenant is unable to. This arrangement gives landlords peace of mind, particularly when renting to students, first-time renters, or those with irregular income.
Guarantors are invaluable in situations where tenants have limited credit history or lower income. Their presence adds financial security and reduces the risk of arrears. Moreover, it opens up your property to a wider pool of applicants who might otherwise struggle to meet requirements.
The ideal guarantor should have a strong financial position—typically a homeowner with a stable income. It's crucial to reference them thoroughly, just as you would a tenant. If you're using a tenancy agreement, include a separate guarantor deed outlining their responsibilities in full.
A guarantor agreement must be signed as a deed, and all parties should understand what they’re committing to. Some landlords choose to limit the guarantor’s responsibility to rent only, while others extend it to cover damages and legal costs. Ensure it's clearly written and legally sound.
In the event of missed rent or breach of agreement, landlords can legally pursue the guarantor for payment—making it a valuable back-up plan.
Used correctly, a guarantor can be a powerful safety net, offering landlords added confidence while helping responsible tenants secure a home. If you're considering this option, we at Bond Residential are here to guide you through the process with expert advice and support.
Book a Valuation
Or call us today on
01245 500599