What is a Tenant Guarantor?
A Guarantor is someone who agrees to vouch for a Tenant’s ability to pay rent, as well as any damage that the Tenant may cause. Should the Tenant default on rent payments and/or fail to pay for any damage caused to the Landlord’s property, the Landlord may proceed against both the Tenant and the Guarantor for payment to be made.
Essentially, the Guarantor is an extra layer of security for the landlord at no extra expense.
Is a Guarantor required?
A Guarantor isn’t legally required; it’s ultimately down to the Landlord, whether he/she requires one to be in place for the tenancy to go ahead. However, most Landlords and Letting Agents do require one, especially when letting to strangers.
It is strongly advised for Landlords to require a Guarantor.
A Guarantor Form is a legal contract stipulating that the Guarantor is accepting responsibility of any monies owed that the Tenant defaults on. In this case, the Guarantor will take liability of the debt, and will be held liable in the court of law.
Types of Guarantor Forms
Guarantor contracts typically come in two different forms. The Guarantor Form is commonly included in the Tenancy Agreement, but can also be drawn up as a separate deed. You can Buy a Tenancy Agreement and a Buy a Guarantor Form as a separate deed from our online store.
Guarantor in Tenancy Agreement:
The Tenancy Agreement will need to contain additional clause(s) dealing with the Guarantor and setting out the liability of the Guarantor. Furthermore, all the above parties will then need to sign the agreement.
Guarantor as a separate deed:
This is a separate legal contract between the Landlord and the Guarantor, stipulating the terms and conditions e.g. what the Guarantor will be liable for.
The Deed of Guarantee must make specific reference to the Tenant and the Tenancy Agreement between 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 contained in such agreement.
The Deed of Guarantee must be signed by the Landlord, the Guarantor and an independent witness.
If at any point a new Tenancy Agreement is created between the tenant and landlord, the Landlord will need to obtain a new Guarantee from the Guarantor.
Buying a Guarantor as a separate deed
There are many sources of obtaining a Guarantor Form, some even for free. However, it is important to get your copy from a reputable supplier that is distributing up to date and legal versions. We sell Guarantor Forms that have been created by award winning professional solicitors for only £3.99. Buy a Guarantor Form from us today.
Reference Check Guarantor
It is important that thorough reference checks are made on the Guarantor (e.g. income, employment history etc). It is also often a prerequisite for the Guarantor to be a UK home owner as this makes recovery of monies much easier for the Landlord.
The landlord should to be confident that the Guarantor can cover any monies owed.