Zoe Alvarez
In the UK, a guarantor is not always necessary to rent a property. However, many landlords and agents may request one before offering a tenancy agreement. This is more likely to be the case if you are an international student or if the landlord has concerns about your financial situation. Guarantors are usually UK residents who can cover any rent arrears and damage to the property. They often need to go through the same referencing process as the tenant, including credit checks and providing proof of income. If you are unable to find a guarantor, there are rent guarantor services available that can provide support in securing a rental property. These services may require an upfront payment or allow you to pay in instalments.
| Characteristics | Values |
|---|---|
| Need for a guarantor | Depends on the landlord's requirements and the tenant's ability to pay |
| Guarantor's role | To cover the tenant's rent if they are unable to pay |
| Guarantor agreement | Must be in writing and outline the guarantor's obligations |
| Guarantor's residence | Preferably in the UK for easier legal action |
| Joint tenancy | Guarantor may be liable for all tenants' rent unless specified otherwise |
| Changes to tenancy | May require a new guarantor agreement |
| Private guarantor companies | Available for a fee, e.g. Housing Hand, UK Guarantor |
| Rent guarantee insurance | May require a reference check and guarantor |
| Alternatives | Larger deposit, rent in advance, resident landlord |
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What You'll Learn
Landlord requirements for guarantors
Landlords and agents often check a guarantor's credit history, income, and money. They might also ask for references and proof of address. The guarantor usually needs to be a UK resident, as it's easier for the landlord to take legal action against them if needed. The guarantor also needs to be over 21 years old and have an annual income of at least 40 times the monthly rent.
The guarantor agreement outlines the guarantor's legal obligations, such as paying the rent if the tenant defaults and covering any damage caused to the property. This agreement should be in writing and signed by all parties involved. It is important for the guarantor to carefully review the tenancy agreement and guarantor agreement before signing to understand their responsibilities and when their liability ends.
If there are multiple tenants, the guarantor agreement usually applies to the rent for the whole property, not just one tenant's share. This means that the guarantor may be pursued for any unpaid rent or arrears by other tenants. It may be possible to negotiate with the landlord to limit the guarantor's liability to only cover the rent payments of a specific tenant or any damage they cause.
To release a guarantor from their responsibilities, the landlord's consent is usually required. A change in the tenancy agreement, such as a rent increase or renewal, may also bring the guarantor's liability to an end. However, this depends on the specific terms of the agreement. It is important for both the tenant and the guarantor to understand the terms and conditions of the guarantor agreement before signing.
If you cannot find a suitable guarantor, there are rent guarantor services available that can provide support and act as your guarantor for a fee. These services typically require proof of income, study, or acceptance of a place at a university.
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Joint tenancy agreements
In the UK, a landlord may or may not require a guarantor depending on the tenant's ability to pay the rent. Landlords usually prefer a guarantor who lives in the UK as it is easier to take legal action if needed. If you are unable to provide a guarantor, you may be asked to pay more rent in advance. Services like RentGuarantor and Housing Hand can also provide a rent guarantor for a fee.
Now, if you are on a joint tenancy agreement, it means that all tenants share equal responsibility for the rent and the property. Joint tenancies are common among students and families as everyone is likely to move in and leave at the same time. Since all tenants are bound by the same agreement, they share the same responsibilities and consequences as if they were one tenant. For instance, if one person breaks a term in the tenancy agreement, everyone is liable.
When it comes to deposits, joint tenancies are technically one tenancy, so there is only one deposit, even if it is made up of payments from each tenant. This deposit will be returned to the lead tenant, who is responsible for distributing it to the other tenants. It is important to note that the deposit scheme, landlord, or letting agent cannot assist with this once the deposit is returned, so tenants should agree on how to split it beforehand.
Joint tenants should also elect a lead tenant who the landlord or letting agent can correspond with. While a fixed-term tenancy usually lasts for the agreed-upon period, it can be ended early if the tenancy agreement includes a break clause or if all joint tenants and the landlord agree to end it. After a fixed-term tenancy ends, any one tenant can leave by giving notice, leaving the remaining tenants responsible for the full terms of the contract.
It is important to carefully consider entering a joint tenancy, as it relies on mutual trust. Disputes may arise over rent payments and deposits if tenants are not well-known to each other. Additionally, if one tenant decides to leave, the remaining tenants must pick up the entire rent each month, and the landlord will still need a court order to evict them.
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Guarantor liability
A guarantor is not always necessary to rent a property in the UK. However, many landlords and agents ask for a guarantor before offering a tenancy agreement. Landlords and agents often check a guarantor's credit history, income, and money, and they might also ask for references. They might also require the guarantor to be a UK resident and a homeowner.
The guarantor's liability may extend beyond the fixed period to any extension and certain changes such as rent increases. This liability could continue for as long as the tenancy exists, unless the agreement specifies otherwise. The liability typically ends if the tenancy is legally ended, for example, through a valid notice to quit by the tenant or a mutual surrender of the tenancy between the landlord and tenant.
In the case of joint tenancies, the guarantor is usually responsible for guaranteeing all tenants, not just an individual tenant. However, it may be possible to negotiate a change to the agreement to limit the guarantor's liability to a specific tenant's rent payments or damage caused by that tenant.
The guarantor is generally liable for any debt owed, divided by the number of tenants sharing the property. For example, if there are four tenants, the guarantor's liability is typically limited to 25% of the rent for any one month. However, landlords may not always agree to limit the guarantor's liability in this way.
It is important to note that the guarantor's liability may continue even if their financial situation changes, unless the guarantee agreement provides protection in such cases. If the tenant breaks any promises made in the tenancy agreement before it ends, the guarantor may be legally responsible for up to six years from the date the promise was broken. For instance, if the tenant fails to pay the last month's rent, the landlord has six years to take action against the guarantor and/or the tenant.
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International students and guarantors
International students in the UK often need a UK guarantor on their leases as they do not meet the property's requirements without one. Landlords may feel more comfortable with a UK guarantor who understands the system and can act as a point of contact and provide assurance that their rent will be paid.
A UK guarantor for international students is liable to pay rent if the student is unable to and is also responsible for any damages caused by the tenant during their stay. The guarantor may face legal action if they cannot fulfil these obligations. Landlords will usually want a guarantor who lives in the UK as it is easier for them to take legal action if needed.
International students can obtain a UK guarantor by asking a UK resident, such as a friend or relative, who meets specific financial criteria. If this is not an option, there are professional guarantor services available, such as RentGuarantor, Housing Hand, UK Guarantor, or Homeppl Guarantid. These services act as your guarantor for a fee, usually equivalent to a few weeks' rent, and can be paid upfront or monthly.
Many universities in the UK also offer accommodation options that do not require a guarantor, with the university acting as the guarantor for its students. Students can also use Housing Hand's University Guarantor Service, which helps UK and international students find accommodation.
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Private guarantor companies
The process typically involves an application, where the individual provides basic information, proof of income or study, and details of a co-signer. The co-signer is someone the company can contact if they cannot reach the tenant. The guarantor company then provides a quote for their services, and upon acceptance, the tenant proceeds with the contract signing. The fees for these services vary, with some companies charging a minimum fee of £295, while others offer the option to pay upfront or in instalments over 6 or 12 months.
These companies cater to a range of individuals, including students, working professionals, self-employed individuals, and those receiving benefits. By providing this service, private guarantor companies assist those who may face challenges in finding a suitable guarantor, particularly international students or those new to the country.
It is important to note that while these companies offer a convenient solution, individuals should carefully review the terms and conditions of any agreement to fully understand their obligations and those of the guarantor company.
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Frequently asked questions
It depends on your landlord or agent's requirements. If you are an international student or migrant without a UK credit history, it may be difficult to rent without a guarantor. If you can't get a guarantor, you may be asked to pay more rent in advance.
The guarantor is usually required to be a UK resident, as it is easier for the landlord to take legal action against them if needed. They also need to be able to pay the rent, which can be checked through a credit check.
The guarantor is responsible for covering the full rent if the tenant cannot pay. In joint tenancies, each guarantor should sign the agreement and agree to any changes. The guarantor may also be liable for any damage caused to the property.
