A guarantor is an individual who agrees to be financially responsible for the tenant. They undertake the liabilities of the tenant which includes paying the rent in the case that the tenant fails to do so. The Guarantor for Rent does not become the tenant; he/she is a third party, often a close relative, who takes the responsibility for liabilities like rent arrears, damage to the property etc. This agreement makes the owner of the property to go after the guarantor for the money in case of any financial obligations. The tenancy agreements are to be carefully read before signing the document as the extent to which the guarantor is held responsible depends on the agreement.
The big thing in becoming a tenant is the choice of the guarantors. Often the tenant’s parent would be the Guarantor for Rent, provided that the parents are in a better financial position than their kids. If in any case if you cannot have your parents to be the guarantors it is always suggested to go with friends or relatives. The liability of the guarantor does end according to the agreement signed. It can be fixed term over which an extension can also be obtained.
Needing a Guarantor for Rentis completely the wish of the landlord. The reason behind the necessity of a guarantor is that the landlord does not want to the risk of losing his money on his property because of the tenant. And because of the wish to have financial certainty and promise of payment the owner enters into the lease agreement alongside the tenant and the guarantor. The need of a guarantor is mostly seen when dealing with many private landlords.
When living in a shared accommodation the guarantor’s guarantee applies to all the rent not your share alone. Care should be taken in reading the terms and conditions of the agreement. It is also possible to negotiate the terms with the owner about the guarantee for rent.
If finding a guarantor has become a problem you can turn to guarantee service providers who provide their guarantor certificate as a proof which also is accepted by the agents and owners as Guarantor for Rent. One such guarantor service provider in U.K is www.housinghand.co.uk. This agency offers a unique service with fine offers to the tenants and hastle free process and registration. Another such service provider is www.insurent.com. This has been the first and most trusted guarantor service provider.
The terms and conditions for the renters are different for different kind of people like citizens of same place, foreigners, self-employed renters, retired renters etc.The terms are stricter to foreigners who want to rent the place because of the reason that owner is completely new to them and have no clue about the new renters. Most of the owners check the credit test of the renter. If required financial requirements are not met by the renters the owner would insist on having a guarantor or co-signer on the lease. This increases the security for his property.
The critical ingredient for any real-estate transaction is the trust factor. The availability of guarantor creates the belief of secure transaction and builds the trust. Hence if you are facing difficulty in obtaining an apartment for lease then it’s time that you go with your guarantor for rent and build the trust with the owner. Try out the guarantor service providers for happy renting.