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May
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2008
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Tenant Guarantor FormCategory: Free Landlord Forms
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What is a tenant guarantor form?
It’s a type of insurance that costs you, a landlord, nothing, but secures you against rent loss, damages and legal fees. The guarantor is someone that will vouch for your tenant, and is legally obliged to cover any costs that your tenant fails to meet. The Guarantor form is the contract that binds the Guarantor to the property and tenant.
Essentially, it’s a safety net for the landlord. I’ve actually NEVER got into an Assured Shorthold Tenancy Agreement with a tenant without making them bind a guarantor into the package. It’s just good sense, because it’s extra security for the landlord.
The guarantor form is NOT a substitute for an Assured Shorthold Tenancy Agreement; it should always be a supplement to the tenancy agreement.
Why do I need a guarantor?
You don’t actually need one; it’s completely optional. However, I wouldn’t advise to go without one. If you have a Tenant whose credit status is not sufficient, but they have someone who is willing to stand as Guarantor for them, then you get that extra peace of mind.
It goes without saying that you should perform credit checks on your tenant, but you can also do the same on the guarantor for as little as £10, plus VAT. If you’re working with a letting agent, they should offer this service for you.
When and who signs the guarantor form?
The landlord, guarantor and witness of the guarantor needs to sign the contract. The landlord should ensure that the guarantor agreement is signed and witnessed before the assured tenancy agreement is signed or executed.
What if my tenant falls into arrears?
If your tenant owes rent or needs to cover any other costs, then that’s when you chase the guarantor for the money. If the guarantor fails to make payment, then you can legally take the guarantor to court. On that note, always make sure that the guarantor has sufficient collateral before allowing them to be the gaurantor. A lot of landlords hold a strict screening process for acceptable guarantors e.g. a good job and owning a porperty are prerequisites. It’s a well advised process which I endorse.
In the past I have had to chase a guarantor because my tenant fell 2 months in arrears with her rent payment. Eventually, I ended up evicting the tenant. However, the gurantor insurance I had in place was well worth it.
How does a Guarantor stop being a Guarantor?
If the tenancy is for a fixed term (e.g 14th May 2007 - 14th May 2008), then the guarantee applies for the whole of the term and is not revocable during that term. If the Tenancy Agreement becomes periodic, then the guarantor will STILL be the guarantor. However, when the fixed term is over and becomes periodic, the guarantor can opt out of the deal by writing to the landlord to terminate the agreement. This is perfectly legal and has been tested in court. The guarantor should give “reasonable” written notice that he/she no longer wishes to be bound by the terms of the deed of guarantee (beyond the fixed term).
A fixed term contract is when two dates are specific in the Assured Shorthold Tenancy Agreement, in which the tenant has rights to live in the property. The agreement becomes periodic when the agreement expires, but tenant and landlord have agreed to continue the tenancy without signing new contracts. In that case, the previous contract rolls over and becomes periodic.
Types of Guarantor Forms
The guarntor form can some times be part of the Assured Shorthold Tenancy Agreement form, but I prefer keeping them separate. There really is no difference.
Download
Here’s a copy of the guarantor form I use with my tenants. Feel free to use it.
Tenant Guarantor Form
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A Little Introduction 
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Hi, Moved to Leicester only 5 months ago and now about to move in a new house, sharing with a few mates. I am the only one working, and now the agency asked me to name a guarantor. As my parents are living in Germany, I am not sure who I should ask to sign the form? Is there an alternative?
Thx in advance
Michael
Hey Michael,
You can get anyone to be a guarantor as long as they’re willing.
It’s probably in your best interest to get a working family member, as landlords also have to agree to who you use as a guarantor.
Hope that helps.
Cheers
Excellent site and tips
Thanks alot
Hi, looking to move out for first time and parents are refusing to be my guarantor(s). I’ve no-one else I can ask, what can I offer the landlord instead?
Hi Sara,
That’s really dependant on the Landlord. There aren’t any written rules. A lot of private landlords that don’t use Letting agents don’t require guarantors- it’s just a case of finding one.
You could offer to pay for rental insurance. That would cost you an extra £100 per year (approximately), though. It’s basically an insurance policy. So for example, if you fall behind on rent and need to be evicted, the insurance company will pay your rent to the landlord and pay for legal costs to get you evicted.
Some landlords may find that appealling, and prefer that over a guarantor (I know I would).
I hope that helps.
Kind regards.
can my guarentor sign himself up as my guarentor leagally by another way apart from physically signing the tenancy agreement, such as online?
Hey Ashley,
Your Guarantor actually needs to sign the Guarantor contract. Can’t you just post it to him?
Kind regards
it is posted, but on the day of move in, or the days leading up to it i need somthing back quicker if they haven’t sent it back already.
regards
When you sign to be a guarantor does the landlord have to provide a seperate form for this with the terms on it. If not is being a guarantor null and void.
Hey Bill,
Yes, the terms and conditions should be stipulated in the contract the Guarantor signs. As shown in the example form above, available to download.
I have agreed to act as a guarantor for my sister. The Landlord has requestd that a ‘Guarantor Application’ be completed, which is several pages long. The application means that the Landlord can carry out credit searches on me, the potential guarantor.
The application asks very personal questions, such as my annual salary, whether I’m single/divorced etc, bank/building society details, character references, employer references, work tel and fax numbers.
Whilst I am prepared to be a guarantor, surely it isn’t necessary for the Landlord to know all this info?
There is also a ‘Guarantee Agreement’ - which is what I was expecting and am perfectly happy to sign - just not too happy about giving such personal info.
Thanks
Hey Linz,
The landlord seems extremely cautious. He/She is just making sure that if your sister fails to make payment, there’s little chance you’ll escape the net.
However, it’s not “required” for the Landlord to obtain all those details. I’ve certainly not seen anything so elaborate. Ultimately, it is down to the Landlord on how strict he/she wants to be.
I personally wouldn’t hand over my bank details.
Kind regards
I have been asked for a guarantor. Does the person who becomes your guarantor need to give bank details to the landlord?
Hey Sean,
It’s not required, but some Landlords may insist on it.
But they definitely don’t need it to get a guarantor in place.
Kind regards
Is a Guarantor Agreement (such as the one here) legally enforceable if signed only by the guarantor with no witness, and transmitted electronically by fax or email ?
Would the original document be required to issue proceedings or would a photocopy be acceptable ?
Thanks.
Great site by the way !
Hey Alan,
The Guarantor Agreement should be signed by a witness, otherwise the agreement holds little strength.
In fact, I don’t think i’ve seen an agreement without the requirement of a signature from a witness.
Photocopy should be ok, but obviously having the original would be a much more of an ideal situation.
Many thanks
I am currently guarantor for a tenancy agreement which, following a fixed term, in now periodic. Reading your comments, I wrote to the letting agency stating I was giving notice to terminate the guarantor agreement. They have written to say I cannot do this. Do you have any more details regarding the court case you mentioned which tested this?
Thanks
Ps Really informative site
Hey Doug,
It’s a bit of a grey area, to be honest.
Many letting agents refuse to terminate the guarantor contract until the tenant moves out of the property. I used to think that was the only way.
However, I’ve read a court case where a guarantor opted out of the agreement during the periodic term. He was taken to court, but he won the case, because he gave writen warning and the tenant was in the periodic term.
I’ll try to find out more on this issue.
Kind regards