Do guarantors have to be home owners?

purple-rain_3

My parents have just sold their house and are now renting for six months whilst they look for somewhere new.

They have agreed to be guarantors for me, but what is the chance they'll be accepted? Can guarantors be tenants themselves?

They're both in full-time employment, if that makes any difference.

Many thanks!

mchale

They don't have to be homeowners, but it depends on individual LL's procedures

Werdnal

Guarantors will require a credit and reference check the same as any prospective tenant would. As you probably know, the idea of the guarantor is to "guarantee" the rent and other losses should the tenant default. It is therefore necessary for the guarantor to prove they have sufficient income and/or assets to cover any financial loss caused by the tenant's actions or failure to pay. Its not just the rent that the guarantor would be liable for - damage to the property could also be claimed against them if the tenant cannot pay. Guarantor would be tied to the tenancy by a legal Deed, so its not just a case of saying "Oh my mum/dad/uncle/grandparents/great aunt Clara will be my guarantor" - the LL/LA will have to accept them first.

Depending on the LL/LA involved, and what criteria they use, they may stipulate home ownership is a requirement, but will also look at income and other references.

theartfullodger

A guarantor can be anyone: They can be - e.g. - a bloke sleeping on't park pench with a dog-on-a-string & no other assets....

Issue is, that sort of guarantor is unlikely to be a reliable source of funds should tenant default...

In other words, it is up to the landlord (or his authorised agent..) who to accept and what form the guarantor agreement takes.. There are many who say any agreement not created as a "deed" and witnessed (England, ;//) is non-enforceable.

Depending on if you are landlord or tenant or guarantor you might be pleased (or not) to find guarantor agreement correctly created as a deed (I'll sign any legal document purporting to bind me to pay money of I know it can't be enforced...). Assuming the agent you are dealing with doesn't know what they are doing (can be a safe assumption..) then your parents will be fine..