As a tenant, you may have come across the term “guarantor” when signing a tenancy agreement. A guarantor is a third party who agrees to pay the rent or any damages on behalf of the tenant in case they are unable to do so. This can be a parent, a relative, or a close friend.
A tenancy agreement guarantor is an essential part of the renting process that provides landlords with greater security when renting out a property. In this article, we will explore the ins and outs of tenancy agreement guarantors, including what they are, why landlords require them, and what their responsibilities entail.
What Is A Tenancy Agreement Guarantor?
A tenancy agreement guarantor is someone who agrees to take responsibility for the rent and any damages incurred during the rental period. They essentially act as a co-signer to the tenancy agreement, promising to fulfill the financial obligations in case the tenant defaults.
Why Do Landlords Require A Guarantor?
Landlords require a guarantor as a form of security. A tenant may be approved to rent a property, but the landlord may have doubts about their ability to pay the rent or cover any damages. In such instances, the landlord may require a guarantor as a safety net. The guarantor offers an extra layer of financial protection for the landlord, ensuring that the rent and any necessary repairs are paid for.
What Are The Responsibilities Of A Guarantor?
When agreeing to be a tenancy agreement guarantor, the responsibilities go beyond just paying the rent or covering any damages. Here are some of the obligations they undertake:
1. Pay Rent Arrears: If the tenant fails to pay rent, the guarantor is obligated to pay any arrears.
2. Cover Damages: If the tenant causes any damage to the property, the guarantor is obligated to cover the repairs.
3. Extend The Tenancy: If the tenant wishes to extend the tenancy, the guarantor may be required to provide additional financial guarantees.
4. Attend Court Hearings: In the event that the tenant and landlord go to court, the guarantor may be asked to attend and provide financial evidence.
5. Understand The Terms of The Tenancy Agreement: As a guarantor, it is essential to understand the terms of the tenancy agreement. This includes understanding the rent amount, the duration of the tenancy, and any other responsibilities outlined in the agreement.
Conclusion
In conclusion, a tenancy agreement guarantor is a vital aspect of the renting process that provides landlords with an extra layer of security. Guarantors offer peace of mind for landlords, ensuring that they will be able to pay the rent or cover any damages if the tenant defaults. As a guarantor, it is essential to understand the responsibilities involved in the role and to only take on the responsibility if you are comfortable with the terms and can fulfill the obligations.