What is a guarantor? Guarantor
A Guarantor isn’t legally required and it is ultimately down to the Landlord if he/she requires one to be in place for the tenancy to go ahead. However, most Landlords and Letting Agents do require one for extra security, especially when dealing with student lets.
What is a Guarantor?
A Guarantor is someone who agrees to guarantee a Tenant’s ability to pay rent, along with any further payments required from damage that the Tenant might cause.
Should the Tenant default on rent payments and/or fail to pay for any damage caused to the property, the Landlord may proceed against both the Tenant and the Guarantor for payment to be made.
A Guarantor Form is a legal contract stating that the Guarantor accepts responsibility of any monies owed to the Landlord that the Tenant has defaulted on. In this case, the Guarantor will take liability of the debt, and can be held liable in the court of law.
A guarantor contract will typically come in two different forms. Commonly, the guarantor form is included in the Tenancy Agreement, however it can also be written up in a separate document.
1. Guarantor in Tenancy Agreements
The Tenancy Agreement may contain additional clause(s) that deal with the Guarantor and set out the liability of the Guarantor. If this is the case, all the parties involved in the tenancy, including the Gurantor, will need to sign the Tenancy Agreement.
2. Guarantor as a separate document
In this case, there is separate legal contract between the Landlord and the Guarantor, setting out the terms and conditions, such as what the Guarantor will be liable for. It is important to be aware of the following:
- The document containing the guarantee must make specific reference to the Tenant and the Tenancy Agreement between both the Landlord and the Tenant.
- The Landlord should provide a copy of the Tenancy Agreement to the Guarantor so he/she is aware of the provisions that are contained in the agreement.
- The separate guarantee form must be signed by the Guarantor, the Landlord and an independent witness.
- If at any point a new Tenancy Agreement is created between the tenant and landlord, then Landlord will need to obtain a new Guarantee from the Guarantor.
Here’s an example template of a guarantor form so you know what you might be asked to sign
The Landlord will want to be confident that the guarantor can cover any monies owed and so the guarantor may also be required to supply proof of identity such as a passport or driving licence, along with a utility bill or bank statement.
Please be aware that if you are paying rent by direct debt on behalf of a tenant this does not amount to a garantee and will still have to fill out a garantor form. Cheques are differnt as they are a better instrument of promise that can be sued on.
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