Choosing accommodation is one of the first major decisions students will need to make. However, with rents soaring nationwide and student loans providing limited income, accommodation providers often require prospective tenants to find a guarantor.
A guarantor agreement, which accompanies a lease, safeguards the landlord’s income in case any difficulties arise.
Typically, a student’s parent or guardian fills this role, although it is not mandatory. If you are expected to sign an agreement as a parent, it’s crucial to understand what you are agreeing to.
Telegraph Money has explored the implications of being a guarantor, the types of individuals who can fulfill this role, and the factors you should consider before signing up.
What does it mean to be a guarantor?
A guarantor is someone who commits to paying rent if the student tenant becomes unable to make the payments.
It is common for landlords in the private rented sector to require a guarantor to protect their income in case the tenant encounters financial troubles – this is not limited to the student sector.
A guarantor may also be asked to cover any costs for property damage during the tenancy.
Student tenancies are subject to the same liabilities as regular private-sector agreements, meaning the guarantor is responsible if the renter breaches the terms.
Who can be a guarantor?
While parents are commonly chosen as guarantors by students, the role does not have to be fulfilled by a close relative or guardian.
Guarantors must be at least 18 years old, although some may be required to be older, and should generally have a favorable credit history and sufficient savings or income to cover payments if necessary.
According to Experian, some landlords or agents may impose specific salary or wealth requirements for guarantors, but this varies case by case.
Unite Students, one of the UK’s largest student accommodation providers, sets the minimum age for guarantors at 25.
Often, guarantors are required to be UK residents so landlords can easily reach them if any issues arise. However, for international students or those without suitable individuals in the UK, some universities offer guarantor schemes to fill this role.
What documents does a guarantor need to provide?
As a guarantor, you will need to step in and pay for the accommodation if the student is unable to do so. Therefore, you must provide evidence that you have sufficient funds for this obligation.
Most landlords or property management companies will request proof of identification, address, and financial details such as bank statements or payslips.
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