Looking for a new house or apartment can be taxing. There is plenty to think about from selecting the ideal site to handling your finances. Whether or not you need a rent guarantor is one issue that frequently surfaces, particularly for first-time renters or those with low credit backgrounds. Although at first, this idea may seem frightening, it is rather frequent in the rental market, particularly in competitive housing locations. We’ll discuss the benefits and drawbacks of having a rent guarantor in this post as well as why you might want one to guarantee your next lease.

One should first know what a lease guarantor is before delving into the advantages and drawbacks. Simply said, a guarantor is someone—usually a family member or close friend—who promises to pay your rent should you for any reason be unable to meet it. If your credit history or financial status does not satisfy their needs, landlords may request this extra security.

Benefits of a Lease Guarantor 

• Having a lease guarantor mostly helps you to increase your rental options. Landlords may be reluctant to lease to you without a safety net if you are a student starting your career, have a limited or poor credit history, or otherwise. A guarantor indicates that someone else is supporting your financial commitment, which increases landlords’ confidence in you about the home.
• In very competitive rental markets, finding the ideal house might seem challenging. Some landlords want to rent to tenants with a guarantor for extra protection even if their financial condition is steady. Having one could be the difference that lets you land your ideal apartment or property.

One drawback of using a lease guarantor is 

• One main disadvantage of having a guarantor is that another individual bears a financial obligation. This can sour ties, particularly if unanticipated events result in late or missed payments and call for the guarantor to intervene.
• Not everyone has a ready guarantor at hand. If you can’t locate someone who fits, your prospective guarantor must have a good financial situation and be at ease absorbing the risk, therefore restricting your possibilities.

Ultimately, the renting procedure starts with determining whether or not you require a rent guarantor. Having one puts a great duty on the person acting as your guarantor even while it provides peace of mind to landlords and opens more possibilities. By carefully balancing the advantages and drawbacks, you will be able to decide which course of action best fits your circumstances and, eventually, acquire the house you wish for.

Mark Pereira