When signing a rent agreement, it is common for a landlord to ask for a guarantor. A guarantor is someone who agrees to take on the rent payments if the tenant is unable to fulfill their rent obligations. This is especially important if the tenant has a poor credit history or no credit history at all.
So, what exactly is a guarantor agreement and what are the responsibilities of the guarantor? Let`s dive into the details.
A guarantor agreement is a legally binding contract between the landlord, tenant, and guarantor. It outlines the responsibilities of the guarantor, which include:
1. Paying rent if the tenant is unable to do so
2. Paying for any damages caused by the tenant
3. Paying for any unpaid utility bills or other charges
Before agreeing to be a guarantor, it is important to understand the risks involved. If the tenant fails to pay rent or damages the property, the guarantor will be held responsible. This could result in financial difficulties or even legal action.
So, who can be a guarantor? Typically, a guarantor is a family member or close friend of the tenant. They must have a good credit rating and be able to prove their income. Some landlords may also require the guarantor to own their own home.
It is important to note that a guarantor is not the same as a co-signer. A co-signer is equally responsible for the rent and other charges, while a guarantor is only responsible if the tenant fails to fulfill their obligations.
If you are considering becoming a guarantor, be sure to read the agreement carefully and understand the responsibilities involved. It is also a good idea to seek legal advice before signing any contract.
In conclusion, a guarantor agreement is an important part of renting a property, especially for tenants with poor credit history. If you are asked to be a guarantor, make sure you fully understand the responsibilities involved before agreeing to sign the contract.