As a landlord, ensuring reliable rent payments is crucial, and that's where a guarantor steps in as your financial safety net. Particularly useful when renting to students, first-time renters, or those with irregular income, a guarantor provides an extra layer of security, ensuring you receive your due rent even if the tenant faces financial hiccups.

Why Use a Guarantor?

Guarantors are invaluable when tenants have a limited credit history or lower income. They not only add financial security but also widen your pool of potential tenants. This means you can welcome applicants who might otherwise struggle to meet standard affordability criteria, all while reducing the risk of arrears.

What to Look for in a Guarantor

A reliable guarantor should have a strong financial standing, typically being a homeowner with a stable income. It's essential to reference them thoroughly, just as you would a tenant. If you're using a tenancy agreement, include a separate guarantor deed that clearly outlines their responsibilities.

Legal Considerations

A guarantor agreement must be signed as a deed, ensuring all parties understand their commitments. Some landlords choose to limit the guarantor's responsibility to rent, while others extend it to cover damages and legal costs. Ensure the agreement is clearly written and legally sound.

Ongoing Protection

In cases of missed rent or breaches of agreement, landlords can legally pursue the guarantor for payment, making it a valuable backup plan.

Used correctly, a guarantor can be a powerful tool, offering landlords added confidence while helping responsible tenants secure a home. And if you're navigating the rental market in Tunbridge Wells, we at Maddisons Residential are here to assist you in making informed decisions for your property investments.

 

 

 

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