In certain circumstances a tenant might need a guarantor in order to be able to rent a property, for example in cases of bad credit. It is surprising how many people agree without knowing exactly what it means.
If a friend or family member asks you to be a guarantor for their tenancy on a new rental property, what does this mean for you:
1. A guarantor agrees to accept the liabilities on behalf of the tenant. If a tenant cannot meet their obligations under the tenancy agreement including rent arrears or damage to the property you are responsible for these debts and issues.
2. You will need to sign a Deed of Guarantee which is a legally binding document.
3. You are agreeing to be fully referenced, including a credit check, employers and landlords (if applicable) reference. Can you afford your own lifestyle and the tenant’s liabilities if you were required to?
4. You cannot withdraw from being a guarantor until a change of tenancy, a tenancy renewal, death of one of the parties or with written permission from the landlord. Therefore you could be bound for a minimum of twelve months depending on the tenancy term.
5. You should always see and read a copy of the tenancy agreement before you sign the Deed of Guarantee. This will fully outline your responsibilities regarding the tenancy.
There is nothing wrong in being a guarantor but think long and hard about it as it could cost you if the tenant fails to meet their obligations. It could affect you personally as well as financially.
For further information or to browse our range of properties to let please visit www.homes4harrogate.co.uk or give me a call or an email on 01423 529250, sarah@homes4harrogate.co.uk
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