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What Does Being a Guarantor Mean?

From time to time, a tenant is required to have a guarantor in order to secure a tenancy.

There are many reasons as to why, some of those are;

  1. They are on full or part housing benefit.
  2. Their credit score is low due to missed payments on a bill such as a mobile bill.
  3. They hav a CCJ (county court judgement) awarded against them.
  4. They are in a zero hours contract employment.
  5. They have only been employed in their current job for less than six months.

The Guarantor’s obligations are to ensure the tenant does not breach the tenancy agreement. It would be extremely reasonable to say; no guarantor goes into this expecting to pay someone else’s rent or other breaches of the tenancy such as damage to the property. They guarantee the person because they believe, they would never put them into a situation where this would happen.

A Guarantor often believes that they can change their mind at a later date. This unfortunately is not true unless the other party (landlord) agrees, the guarantor is responsible for the period of the tenancy or whatever is within the agreement you have signed.

Each agent is different in their requirements for passing a Guarantor. At Move On we go through the same stringent referencing as the tenant and in addition we insist they have to be a home owner. (the guarantor wouldn't be worth much as a form of insurance if they themselves were unemployed or not financially able to support the rent.)

This gives my clients complete peace of mind, that in the event of a guarantor not paying, then a charge can be put against the house.

If in the event a tenant puts their Guarantor in this position, then once they have vacated you can assess the total losses and damage to the property. If the Guarantor refuses to pay (which to be fair the majority do) you will need to bring a claim against them through the courts. A scenario I assure you we have not as yet gone down as to be fair, most Guarantor’s appreciate it is the tenant who has put them in this situation and not the landlord.

LANDLORDS – MAKE SURE YOU HAVE A GUARANTOR WHO CAN PAY!

GUARANTORS – UNDERSTAND THE FULL IMPLICATIONS OF GUARANTEEING SOMEONE!

 

Have a good week!

Sharon

IF YOU ARE LOOKING TO RENT, BUY, SELL OR INVEST, THEN REMEMBER MOVE ON SALES AND LETTINGS FOR ALL YOUR PROPERTY NEEDS.

If you would like a friendly, no obligation chat regarding any property matter, then please Email sharon@moveon.biz or telephone 01202 711169. .

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