When you have to hire a new tenant, then the prospective tenants could be a pose higher level of risk during the tenant referencing. There can be a number of reasons behind this, like issues due to the credit history and the temporary work status of the person. Obviously, due to the poor credit scores are not for ever and the temporary will last for more than 6 months. But, making a decision is not usually easy in such situations. This creates the need of a tenant guarantor, as he/she is like the insurance policy of the landlord against any tenant default.
Who all can be a guarantor?
Any friend or family member can be the tenant guarantor and they have to sign an agreement that says that they accept all the liabilities on the behalf of the tenants. The liabilities usually include the outstanding rent that is caused due to the damages, losses and also the other charges that are to be paid to the landlord.
Keeping someone as a guarantor is a very common practice, but you do need to do a background check of the guarantor. This is just to make sure that they are who they say they are and they are capable of paying the outstanding rent and any other due charges as per the tenancy agreement. Also, the guarantor should be staying in the same country.
What all you need to look in a guarantor?
First of all, the guarantor needs to have a good credit score and he/she shouldn’t have any insolvency data, bankruptcy or anything else that is not right. If you sign a guarantor who doesn’t have satisfying credit score, then you can’t rely on them and this also doesn’t improve the prospects of a successful letting. You must verify their source of income and check that it is sufficient to cover the rent of the tenants and secure enough that it will be there for the entire tenancy period. Ownership of a land or home is a plus point and usually the landlords insist on this thing. Although, it is not necessary that they are a owner, but if they are then it is beneficial. If you have checked everything and you find that the guarantor has enough income and their address is also confirmed, then you can move ahead with the renting procedure.
About housing benefit tenants
It is usually recommended to the landlords that the tenants who rely on the housing benefits in order to pay the rent should have guarantor, as the risk with them is higher. Nowadays, we come across various cases in which tenants have caused harm to the landlord, thus a guarantor is very important.
Student tenants and shares
Almost all the tenancies have several and joint liability; this means that all the tenants in 6your house are responsible for paying the rent, which is independent of their individual share. This thing can be an issue if you have students as tenants in your home. Although, the guarantors do agree that they can pay the share of rent of their child or relative, but they don’t agree to pay the share of the other. For this, you can get the agreement signed by the guarantors so that their liability is confined to their ward. Like, if one of the tenants has caused any damage or loss to your property, then his/her guarantor will be entitled to pay for that. Also, you must know that one guarantor can pay the outstanding amount easily whi8le other won’t agree, so with more tenants come more guarantors and more issues.
Now, you have all the information about how a guarantor acts between you and your tenant, but the most essential this is tenant referencing service, who will conduct all the background check and verification stuff. For this, you’d need a reliable service and the best is ‘Tenant Eviction Service’, here you can find the professional who will guide you in the best manner to find the best tenant for your property. We will also handle the situation, when your tenants become a headache and you want them to leave. For all your tenant related issues, you can come to us anytime you need. Feel free to get in touch with us.