Landlord Products / Services
While having a tenant guarantor is not legally required in a tenancy, I can only strongly recommend that ALL landlords to ensure their tenants have one. It provides an extra layer of security and it doesn’t cost a bean. It’s a no-brainer. They’re awesome.
A guarantor is particularly valuable if a tenant falls into arrears or causes damage to the property and refuses to pay for the repairs. In such cases, the landlord has the legal right to pursue the guarantor for the outstanding costs.
However, to have a reasonable chance of making a successful claim, it’s crucial that your tenant’s guarantor is financially qualified – there’s no use in having an underqualified bum. In other words, they must have the means to cover any potential costs, such as arrears.
This is where a Guarantor Application Form proves valuable, helping to ensure that a suitable and financially capable person is stepping into the role.
Before diving any deeper into this article and downloading the Free Guarantor Application Form, I’d be remiss if I didn’t strongly advise for you to read the Tenant Guarantor Guide if you’re not familiar with the purpose or general principles of a tenant guarantor.
To give you a basic overview, a guarantor accepts the responsibility of being liable for rental loss, damages and any ensuing legal fees that is incurred by a tenant.
Why a Guarantor Application Form?
- Financial Security: Helps assess whether the guarantor is financially capable of covering the tenant’s liabilities, such as rent arrears or property damage.
- Thorough Vetting: Provides the necessary information to properly vet both the tenant and their guarantor, ensuring they meet the landlord’s standards.
- Prevents Risky Tenants: Helps avoid accepting tenants with unreliable or unqualified guarantors, reducing the likelihood of rental issues.
- Reduces Future Problems: Mitigates potential disputes or financial losses by ensuring the guarantor is able to fulfil their obligations if needed.
- Extra Protection: Offers peace of mind by confirming that the guarantor is legally obligated to cover the tenant’s debts if required.
Guarantor Referencing
Here are the steps I take when referencing a guarantor, along with my tips for you:
- Reference the guarantor just like a tenant: This should include a full credit check. You can use any of the many professional credit check services available for landlords, all of which are fairly affordable (approximately £20).
- Meet the guarantor in person: Whenever possible, meet them face-to-face to make your own judgment about their suitability.
- Have the guarantor complete an application form: Make sure the guarantor fills out an application form (a free download is available below). This helps you gather all the necessary information to assess their suitability.
Guarantor agreement contract
Once you’re satisfied with your choice of tenant and their guarantor, the next step is to have the guarantor sign a Guarantor Contract. This is a legally binding agreement that holds the guarantor responsible for the tenant’s obligations if the tenant is unable to meet them under the tenancy agreement.
There are two methods for creating a binding guarantor contract:
- Guarantor Clauses within the Tenancy Agreement: In this case, the guarantor’s responsibility is included directly in the tenancy agreement. The tenant, landlord, and guarantor all sign the same contract, making the guarantor legally responsible.
- Deed of Guarantee: This is a separate, standalone contract that specifically outlines the guarantor’s obligations. It’s essentially an additional agreement, almost like another tenancy agreement, but specifically for the guarantor. Deed of Guarantee available for download.
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
Any documents you download from this website are just examples of its kind and should be checked by a professional. I give no warranties or representations concerning the documents, and accept no liability in relation to the use of the documents.
I am considering being a guarantor for my son who is looking at renting a flat in his last year at uni. The agency has asked for proof of employment and earnings (which is fine ), 3 months worth of bank statements including transactions, a copy of my passport and they want to buy a copy of the land registry of my house. Is this normal? Seems abit extreme to me. Your opinion and any advice would be greatly appreciated.
Thank you Andrea