Should the Tenant fall into rent arrears see our Rent Arrears & Guarantors Guide
As with most types of legal action, claims against guarantors have been on the increase in recent years, so the role of guarantor is quite an onerous one and not to be entered into lightly.
The guarantor would usually need to be a home owner with steady long-term employment if they are to satisfy the requirements of a good credit score, to become a guarantor.
Parents of young people or students are often asked to guarantee their children's rent. This, hopefully, is less risky for the parent, as they know that their child can be trusted.
However, parents need to be cautious here because joint residential tenancies for students or groups usually carry joint and several liability - this means that the parent is, in effect, guaranteeing all the other residents as well and not just their child!
The guarantor's application form is similar to the tenancy application. Credit searches and references will be checked and all of the following:
You will need to register with Data Protection, as you will be taking personal details, including bank details from Tenants but the fact is, most people do not comply with this requirement.
The second part is the guarantor's agreement with the Landlord. This states:
PIMS Landlords Insurance - Price beat Promise
Immigration Act revised 2016 should a landlord or letting agent fail to ensure ALL tenants/occupiers have a righto reside for the duration of the tenancy then they may be fined £3000 for each breach. The Secretary of State may instruct the landlord to remove such persons without the need of a court order by way of reasonable force
Labour market enforcement - restriction on illegal migrants to work. A labour market enforcement undertaking (an “LME undertaking”) is an undertaking by the person giving it (the “subject”) to comply with any prohibitions, restrictions and requirements set out in the undertaking