A guarantor is a person who guarantees tenants' rent payments and the cost of any damage tenants may cause.
You may be required to have a guarantor if your Credit and Reference check is not fully satisfactory. It may be because you have been in your current employment for less than six months, you may have some credit history matters against you, your salary may be slightly short of the minimum required, or you may be simply an student who is being financially supported by your family. The case is that to safeguard the multiple liabilities that may rise during a tenancy, we are obliged, in this cases, to ask for a guarantor.
This guarantor will have to meet the same criteria that applies to the tenant. Nevertheless the annual salary of this guarantor must be above 36 times the monthly rent to be covered by the tenant (or the share of the tenant if a joint tenancy). This amount is higher than the 30 times the monthly rent required for the tenant, since any liability that may rise as a consequence of a tenant not fulfilling their obligations will aggregate to the normal cost of living that the guarantor had in the first place.
It is very important to note the following:
1. Guarantors must be UK resident.
2. Joint tenancies are contracted under “joint and several liability” terms. This mean that each tenant is liable to pay the full rent and full cost of any damage tenants may cause if any other tenant fail to cover his/her share. Based on this, the guarantor of a joint tenant will be equally liable to pay the full rent and cost of any damage even if the default payment or damage has not been caused by the tenant he agreed to guarantee. Guarantors need to seriously consider this implication