We know that finding a place to rent can be a daunting task that is often overwhelming for people, especially first-time renters.
A common requirement that potential tenants may come across is the need for a guarantor. But what exactly is a guarantor and who can serve as one?
In this blog, we’ll explain what defines a guarantor and who could qualify to be one, and what makes a good guarantor. We want to make sure you’re fully informed and well-prepared for this important stage of securing your next rental home!
What Is A Guarantor?
Put simply, a guarantor is someone who pledges to repay the debts of another person if they are unable to pay them themselves.
Guarantors are commonly required when someone is applying for loans or other types of credit, particularly if someone has a poor credit history, low income, or any other factor that makes them a high risk to lenders.
It is important to note that being a guarantor is not a decision to be made lightly, as it involves a significant financial responsibility.
It is vital that the guarantor fully understands the terms of the loan and their obligations before signing any agreements.
As such, finding a trustworthy guarantor is crucial for those who need financial assistance, as it can make or break their financial future.
Who Can Be A Guarantor?
Not just anyone can step up to be a guarantor. To be considered as a potential guarantor there are a few requirements you have to meet.
Specific lenders or landlords will have different requirements but a guarantor must have at least the following:
- A stable financial income from a steady job
- A good credit score
- Be able to demonstrate a responsible approach to managing their own finances
Additionally, a guarantor should be someone who is a family member, or have a close relationship with the potential renter in order to establish trust and security for the guarantor to confidently vouch for the borrower.
Do Potential Renters Have To Have A Guarantor And What Are The Benefits?
When it comes to renting a home, you may wonder if having a guarantor is essential.
The answer is, it depends on your circumstances.
A guarantor is someone who agrees to pay your rent if you cannot, which gives landlords confidence in renting to you. If you have a low credit score, no rental history, or unstable income, having a guarantor can make you a more desirable candidate for a lease.
Additionally, having a guarantor can help you negotiate better lease terms, such as a lower security deposit or a lower monthly rent.
However, it’s important to note that your guarantor will also have financial responsibilities, and you should choose someone who is financially stable and trustworthy.
Ultimately, having a guarantor can be an excellent way to secure a home, but make sure to consider all the responsibilities it entails before making a decision.
Alternatives To A Guarantor For Potential Renters
Finding a guarantor can be difficult, especially with the financial responsibility it puts on the guarantor. But, there are a couple of options you can use as a renter that avoid using a guarantor but still minimise risk to landlords.
The first option is to put down a higher security deposit on the property you want to rent or make an advanced rent payment which can offer additional protection if you can’t make your monthly payment.
Another alternative is to submit to a thorough background check by your landlord that checks your credit history, employment, and rental history. This can help landlords assess your ability to pay rent on time and your level of financial responsibility.
Ultimately it’s up to a landlord to decide which approach to take, but using a combination of these alternatives can help you rent a property without a guarantor.
Are You A Potential Renter Looking For A First Home?
If you’re on the lookout for a new rental home because yours is too small or the landlord doesn’t take your maintenance requests seriously but you haven’t found the perfect one yet, you’re in luck!
We have affordable, spacious homes becoming available all the time that are perfect for couples, single people, and families, we have something for everyone!
If you want to be the first to know about our properties becoming available, fill in our VIP Tenant Application form below and a member of our team will be in contact to help you with your search.
Other Free Resources For Renters
Read Our Blog – Are You Ready For The New Financial Year?
Read Our Blog – First Time Renters In Hartlepool – How Much Rent Can I Afford?
- What Is A Guarantor And Who Can Be One For Potential Renters? - April 13, 2023
- Are You Ready For The New Financial Year? – Helpful Financial Tips For Renters - February 23, 2023
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