What is a Guarantor
If you have a poor credit history, are a student or in a job with low earnings or in receipt of housing benefit, you will more than likely need a guarantor to be able to rent accommodation from PWR or any other letting agent.
Where a guarantor has entered into an agreement, this means that in the event of a tenant being unable to meet their obligations under the tenancy agreement, whether it is for overdue rent, damage to the property or whatever, the Guarantor is legally bound to accept the liabilities on behalf of the tenant.
Use of a Guarantor is like an insurance policy for the landlord or lettings agent against the tenant defaulting on the rent. Like with most types of insurance, the number of claims against guarantors has risen in recent years, so the requirements for being a guarantor are getting somewhat tougher. Nowadays, a guarantor must usually be a homeowner that does not fail a credit inquiry and is therefore probably in regular employment, which will need to be verified (PWR’s requirement is that the guarantor must be earning 50 times the monthly rental to qualify). A person would not provide much of a guarantee if they were themselves unable to make a payment should the circumstances require it.
Bear in mind that if you are entering into a joint tenancy where the tenants are jointly and severally responsible, the guarantor is, in effect guaranteeing not just the tenant they specifically have association with, but any of the other tenants as well. They may not be aware of this and may not be so willing to act as guarantor if they know.
Please contact our office if you require any further information on being a guarantor.
