Finding a rental property can be a stressful process for individuals whose income, credit score, and/or rental history do not fully comply with all the landlord's requirements. Most renters have felt uncertainty at some point regarding the use of guarantors as a way to enhance their rental applications.
While it may be a challenge to find out how guarantors work or how to best strengthen your rental application, understanding rental requirements will give you the confidence to be prepared.
Continue reading below to understand what the landlord looks for in an applicant and how a guarantor fits into the picture. You will have a better chance of getting approved for a rental unit and making smart leasing decisions from day one.
It's important to choose someone reliable when asking who should I put as my guarantor on a rental application. A guarantor is an individual who will financially support you when you are unable to pay your rent.
This is a long-term commitment, so it’s important to pick a good one. Landlords are looking for reliability. They don’t care how well you know your guarantor.
Most property managers use established criteria for selecting guarantors, such as:
Prior to asking someone to act as your guarantor, consider explaining the potential liability to them. Choosing a guarantor who has a good track record of paying bills will help protect your rental application and increase the likelihood of securing housing.
A guarantor can give landlords additional assurance that your rental payments will be made and your responsibilities as a tenant will be fulfilled when you are unable to make those payments yourself. This is necessary because landlords save money with expert tips, and missed rent or a damaged property can negatively affect their income.
This section outlines the primary functions of a guarantor and why they may impact your rental application process.
A guarantor is someone who agrees to become liable for the rent or other lease payments in case you are unable to make the payments. Usually, a guarantor is someone who doesn't live at the location; however, the guarantor becomes responsible for ensuring that lease payments are made during the length of the lease term.
Many landlords will request a guarantor for students, people with bad or no credit history, or limited income. The role of the guarantor is to protect the landlord from the loss of rental income in the event that you are unable to pay your rent or are liable for damages to their property.
You will probably require a guarantor if you have little or no rental history, or your income is below the landlord's minimum criteria. A guarantor can help you get into an apartment that you would not qualify for otherwise.
A guarantor agrees, in a written agreement with the landlord, to pay the rent owed when it is late and, depending on the terms of their agreement, may agree to become liable for damages to the property. The commitment made as a guarantor typically will last the entire length of the lease unless a release from liability has been agreed upon by both the landlord and the guarantor.
A guarantor is required to have sufficient financial stability, be of a minimum legal age, and successfully pass a background check and income/credit check. By doing this, the landlord knows whether or not the guarantor has the ability to pay obligations that they need to do so.
If you are renting but have a less-than-perfect credit history, then you can still get a rental if you prepare properly. A well-prepared rental application will show potential landlords that you are reliable, transparent, and financially stable, and that there is more to being qualified for a rental than just a credit number.
To begin with, you need to provide proof that you have enough money to pay rent. Recent pay stubs, bank statements, or an employer's letter can be your proof of stable income. Most landlords want to know that you can consistently make your monthly rent payment and that it fits into your overall budget.
Choosing a reliable apartment guarantor can improve your chances of getting approved for a rental. When looking for a qualified guarantor, choose someone who has a good credit score and a steady income. The financial support of a qualified guarantor will reduce the amount of risk your landlord will take on and will help alleviate some of the concerns that he/she may have regarding your credit history.
When providing your references, include those from your previous landlords, employers, and/or property managers. Any positive reference you can obtain will help indicate to your landlord that you are responsible for paying your rent on time and that you also communicate well. All these qualities will likely outweigh any lower credit score you may have.
Address problems with credit first. Explain what happened to cause you credit trouble, and how your situation is better now. Being transparent about problems will create confidence that you can be trusted, as well as show maturity in managing financial obligations.
Consider paying more on the security deposit, taking a short-term lease, or pre-paying for rent. Taking these actions will show that you are serious and may reduce the landlord's perceived risk, thereby increasing the chances of approval being granted.
Understanding what a landlord requires for rentals gives you the power to control your own leasing process. Knowing how guarantors function and how enhancing your application may eliminate uncertainty and increase your chances of being approved.
Your landlord is more likely to view you as a trustworthy tenant when you have the right guarantor, have prepared the correct documentation, and have communicated clearly. Smart preparation, even if you do not have perfect credit, allows you to rent housing with confidence and gain the type of housing you want that meets your needs and future goals.
