Finding a rental property in an urban area can be quite challenging. To start with, rent prices are significantly high in urban areas and therefore landlords may have steep demands from their applicants. Moreover, if you are a first-time renter without a rental history it can be difficult to meet the demands of landlords. Fortunately, there is a way around these scenarios. You can find a guarantor to help you secure a rental property. That said, what exactly is a guarantor? A guarantor is a person who will co-sign on a lease agreement with you. In addition, your guarantor will be financially responsible in the event that you fail to meet your financial obligations. Here is a rundown of some lease guarantor FAQs.
The concept of a lease guarantor is quite straightforward and need not be confusing. A guarantor is a person that willingly acts a guarantee in the event that you are unable to meet your financial commitment. Furthermore, a guarantor is equally bound, liable and as responsible for the lease as the tenant. As such, it is of the greatest importance that everyone is clear as to the terms of the lease, as well as their responsibilities and obligations.
Requirements for a guarantor
In most cases, guarantors face tougher requirements than the lease signer. In the first place, a guarantor must possess an impeccable credit history. A guarantor must also be in a position to satisfactorily prove their financial stability. It is highly advisable to seek legal advice to aid you understand all the legalese of the lease. Keep in mind that a lease is a legally binding contract. As such, it is vital that you understand every single aspect of the lease before you agree to be a guarantor.
Finding a guarantor
A guarantor is legally bound by the lease agreement to pay your rent if you fail to meet your payments. With this in mind, you need to carefully and strategically pick a guarantor. Start by asking family members to guarantee your lease. You can also consider asking a close friend to be a guarantor on your lease. Whatever your choice for a guarantor, ensure they understand all the details and the expected commitment. Your guarantor also needs to understand that the landlord will look into the guarantor’s finances and credit history. Moreover, your guarantor must be willing and financially ready to step in and pay your rent if necessary. Another important consideration is if your guarantor can step in for an extended period if you lose your source of income.
If you cannot find a guarantor
If you are unable to find a guarantor it complicates issues slightly, but it is not the end of world. With a little creativity you can find a way to work around this challenge. You can start by asking the landlord if you can pay a higher monthly rent to offset the risk of you failing to meet your financial requirements. In addition, you can find a roommate to share a living space and expenses with.