The claims against guarantors are increasing and the prerequisites for permanent guarantors are becoming more stringent. This may be a requirement, you are a homeowner, and you will almost certainly prove that your income is above a certain threshold. For example, an owner/agent may require that your annual salary or income be at least 50 times higher than the lessee's monthly rental payment. Therefore, if the monthly rent is $ 400, you may need a minimum income of $ 20,000 to be considered a Gauls. In addition, you must work in your current job for at least a few months or even longer.

In order to complete the application, the agency performing the inspection will ask you to provide some or all of the following information:

  • Your name and date of birth.
  • Your national insurance number
  • Your contact information, including the duration of your current address.
  • Your employer details, such as the name of the company you work for, the contact number of the manager or HR department, your salary, and the length of your current position.
  • Your bank details.

With this information, the agency will ensure that you are suitable as a guarantor by conducting background checks and employment surveys. This will require contacting your employer to confirm your salary and the date you started working. They can also check your credit history based on the criteria of the agency performing the verification.

Note: If you do a credit check, the fingerprint will remain in your credit file. A few credit checks in a short period of time can lower your credit score.

Security agreement

The second part of the program, once you are lit green, includes checking and signing a security agreement. You must be aware of your obligations as a guarantor. Be vigilant and make sure you understand the wording. If necessary, ask the owner or agency for clarification. As an additional safeguard, you can fulfill the agreement through a lawyer or legal counsel.

Before signing the agreement, make sure you know the answers to the following questions:

  • Who do you agree to be a guarantor? This may sound like a stupid question, but if you are a student's parent, you need to make sure that you are only responsible for the rental obligations of your son/daughter, not the entire student animal house.

  • In terms of finance, what is your scope of responsibility?

  • How long will your tenure as a guarantor last? What happens if the tenant wants to extend the lease agreement after the initial contract expires?

  • If the tenant defaults on the rent, how soon will the landlord or the rental agent contact you?

  • If the lessee stops paying rent or moving out of the house without a formal notice or a failure to comply with the lease agreement, what action will the owner take?

It's also worth noting that if you need to fill out an online application, the actual legal agreement may be associated with the same stage in which you submit your personal/employment details for approval. Again, make sure you are absolutely clear. Each institution has a different applicable system, and the wording of the guarantee agreement has no common formula.

Before becoming a rent guarantor, make sure you can answer the following four questions:

1) Do you fully trust the tenant you agree to guarantee?

2) If they disappoint you, are you able to take over their lease obligations?

3) Are you willing to hire and credit your name?

4) Do you fully understand your responsibilities and obligations as stated in the warranty agreement?

For many people, as a rent guarantor, it is to help family and friends. But it will become ugly. Ensure that risk exposure is minimized and ready to be hit in the event of a problem.