Guarantor
A guarantor is a person or organisation that agrees to be legally responsible for a tenant’s obligations under a tenancy agreement, usually by signing a guarantor agreement or deed of guarantee. If the tenant fails to pay rent or causes other losses covered by the guarantee, for example certain damage or legal costs, the landlord can pursue the guarantor for the money.
Guarantors are often required where the tenant has limited credit history or income, such as students, young renters, people on benefits, or those moving from overseas. A guarantor is usually expected to be UK-based, over 18 and able to show sufficient income or assets. The guarantee may be limited, for example to rent only, or to a fixed term, or open-ended. The contract wording is crucial.
For renters and guarantors, it is important to understand that a guarantee can create joint and several liability, meaning the landlord can pursue either the tenant or the guarantor or both for the full amount owed. A guarantor should always see the tenancy agreement and take advice if unsure, as they may be committing to significant, long-lasting financial risk.
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