Where at prospective tenant achieves only a low credit score or his/her earnings don't reached the recommended one-third of the rent amount, you have three options:
It is also common to ask for guarantors where the tenant is a young person or a student. Parents will usually oblige here.
Guarantors should normally be home owners (not absolutely essential) and of sufficient means or earning capacity to comfortably pay the rent should your tenant default.
A guarantor is usually someone close to the tenant (a relative, though friends and employers can sometimes oblige) who would provide contractual assurance that rent and any damage will be paid for before the end of the tenancy in the event of default.
Guarantors MUST have seen and approved the tenancy agreement they are guaranteeing prior to the signing and they must also sign a Deed of Guarantee. This signing should be witnessed.
You need to carry out credit checks, referencing and identity checks for a guarantor just as you would with a tenant.
Guarantors are outside the scope of the Deposit Protection Scheme.
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