If you’re planning on renting a property to students, you’ll most likely need to request details for the person who will act as your tenant’s guarantor.
In this guide, we’ll take a look at what it means to nominate a guarantor, what a guarantor is, why this process is necessary for most - if not all - student lets.
Find out more about CJ Hole’s student letting services.
What is a guarantor?
A guarantor essentially acts as a “guarantee” for your tenant’s rental payments by promising to pay if the tenant fails to. A guarantor is typically a direct relative or a friend.
If the tenant does not pay the agreed rent, the landlord can ask the tenant’s guarantor to pay instead. Because of this, some landlords might ask to check if the guarantor is able to cover missed rental payments by carrying out a credit check.
Do students need a guarantor?
Yes, an eligible guarantor is likely to be an essential part of any application for student accommodation.
However, there are a couple of exceptions, such as if the tenant is able to pay the rent up front to cover the entirety of the tenancy agreement, or if they are staying in university-owned halls and the university does not request a guarantor.
Related: How to become a student landlord
The criteria for a student let guarantor
Criteria may vary depending on the landlord or letting agent, but typically, the criteria for a reliable student let guarantor is:
A parent or legal guardian
Over the age of 18 or 21
A UK resident
Employed
Has a good credit score
Demonstrable source of income and ability to cover rent if necessary
Most guarantors need to be UK based so that the landlord can assess their financial position before accepting the tenant’s application. The tenant’s chosen guarantor must be able to prove that they will be able to cover the cost of any missed rental payments and any other expense they incur during the tenancy, such as repair costs for damages to the property.
Related: Landlord Guide: What to do if tenants don’t pay the rent
Why do you need a guarantor as a student?
Most landlords will request a guarantor, regardless of who they are letting their property out to. This is because the landlord needs to protect themselves from missed rental payments, which may be used to pay off the mortgage on the property.
What is the guarantor liable for?
If someone has agreed to be your tenant’s guarantor, they will be liable for any costs owed at any point under the agreement. You may contact your tenant’s guarantor if you have already attempted to contact the tenant and have not received payment.
This also means that if both the tenant and the guarantor fail to pay the money that is owed, the tenant could face additional costs, lose their deposit, or both the tenant and the guarantor could face court proceedings to recover the money owed.
Related: Property Management 101: Everything you need to know
What happens if you don’t have a guarantor?
Many landlords will refuse student tenants who do not have a guarantor, so tenants who are struggling to find one should consider the following measures:
Check if your university or college offers a rent guarantor scheme by searching their website or asking the student’s union or accommodation services.
Find out if there are any bursaries, scholarships or any other practical support available for students in your situation. For example, they may be able to pay a larger deposit or extra rent in advance, allowing your landlord to accept your application with confidence.
Contact the Unite Foundation - this is a charity that provides students and care leavers with the opportunity to apply for free student accommodation for up to three years of undergraduate study at certain universities.
Additionally, international students who cannot provide a guarantor with UK citizenship should contact the International Student Advisor within their students’ union.
Are you a student landlord?
For many landlords, students are the ideal demographic. With stable levels of demand and the opportunity to rent to multiple tenants in one property, student lets are a great opportunity - but they require a great deal of time and management.
Whether you’re a seasoned student landlord, or you’re considering the benefits of investing in your first student-friendly rental, CJ Hole can help you navigate every step of the process.
From keeping track of changes in the rental market to finding the right tenants for your property, having a CJ Hole agent on your side will ensure that you’re getting the most out of your investment, while your student tenants enjoy a high-quality home.
Finding ideal student accommodation with CJ Hole
Searching for student accommodation can be daunting and overwhelming, so it’s important to rent with a trustworthy agent who can guide you through every step of your journey. At CJ Hole, we provide a diverse range of high quality student rentals, all perfectly located and well-equipped for student life.
If you’ve any questions, our team is on hand. Get in touch today to find out how we can help you.
