What is a Guarantor?
A guarantor is someone who agrees to pay the rent or cover any damages related to a tenancy if the tenant is unable to pay. A guarantor is typically a family member or close personal friend of the tenant, often a homeowner in the UK. The guarantor’s financial stability is important, as they must be able to meet these obligations if the tenant defaults. The guarantor's responsibilities should be clearly outlined in a formal agreement, which may include unpaid rent, property damages, and other costs like legal fees. By securing a guarantor, landlords can have peace of mind that if their tenant does breach their obligations they will be able to recoup their losses later on.
How do I get a Guarantor?
Typically, an ideal guarantor will be a UK-based homeowner with sufficient income to cover the rent as well as their own mortgage. Without meeting these financial requirements, it may be challenging to recover any damages or unpaid rent if the tenant defaults. To reduce risk, it is highly recommended that landlords ensure the guarantor is fully credit-checked and referenced. This helps confirm the guarantor’s ability to meet their obligations. Additionally, landlords should ensure that the guarantor’s responsibilities are clearly outlined in a formal, legally binding agreement.
Where can I find more information?
For more information please use the NRLA resource page here
Where can I find training on this topic?
The NRLA offer a multitude of courses for our members to increase their knowledge and improve their skills as a landlord. They come in three types of formats depending on your preference:
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Classroom: In-person sessions for hands-on learning.
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eClassroom: Interactive online classes that allow for real-time engagement.
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eLearning: Flexible, self-paced online courses for those who prefer learning on their own schedule.
Last reviewed 15th November 2024