If you’re planning to move into privately rented student accommodation, you’ll likely be asked to provide details for a person who will act as your guarantor.
But what exactly does that mean? And who can you ask to take on the role?
That’s what we look at in this blog.
What is a guarantor?
A guarantor is someone who’ll become responsible for paying your rent in the event you fall into arrears and are no longer able to pay.
It’s common for a guarantor to be needed for student finances and loans.
Is it compulsory to have a guarantor for student accommodation?
If you’re going to stay in private rented student accommodation, then yes, it’s likely to be an essential part of your application that you provide details for a guarantor.
The only time you wouldn’t need to provide a guarantor for private student accommodation is if you’re able to pay the rent upfront for the entirety of your tenancy agreement.
If you stay in university-owned halls, you may not be asked to provide a guarantor.
Who can be your guarantor?
Being a guarantor is a big responsibility.
This person will become financially liable for your rent if you cannot pay – so they need to understand what they’re signing up for.
The requirements for who can be your guarantor may differ between individual landlords and student accommodation providers, but typically your guarantor must meet the same essential criteria, including:
- Most guarantors will need to be UK based so their financial position can be assessed appropriately and to simplify the legal processes if a claim is made against them.
- Your guarantor must prove they’re in a financial position to meet your obligations for rent in the event you cannot continue with payments.
Many students use their parent or guardian as their guarantor, but really anyone who is deemed acceptable by your landlord or student accommodation provider can fill this role.
Just ensure they’re 100% clear on what they’re signing up for because they won’t just become responsible for your rent if you stop paying.
They could also become financially liable for any other costs you incur during your tenancy, for example, repair costs if you damage your property.
Why do you need a guarantor for student accommodation?
As we’ve said, guarantors are common in student finance, and they’re seen as an insurance policy to ensure your rent will be paid if you can’t honour your obligations.
Students can be seen as a financial risk for landlords, especially those who finance their studies through loans and don’t have a part-time job while at university.
In the event you can’t pay your rent, your landlord or accommodation provider will still want to be paid, which is why they ask for a guarantor to take responsibility for payments when you can’t.
What if you can’t get a guarantor?
Unfortunately, failing to come up with a guarantor can lead to you missing out on your chosen student accommodation.
As we’ve said, due to the nature of student tenancies and finance, guarantors are mostly seen as essential before an agreement can be signed.
The only way to get around this is to provide all your rent upfront for your tenancy period.
What happens to my guarantor if I stop paying my rent?
When you fall into arrears on your student rent, your guarantor becomes legally liable to make the payments.
Most landlords and student accommodation providers are reasonable and will likely work with you to find a solution to your financial problems and come up with a plan so you can honour your payments.
A process will be in place to reach an agreement with you before your guarantor is approached for payments.
If they also refuse or can’t pay your rent, you could face additional costs, you could lose your deposit, and you and your guarantor could face county court proceedings to recover any rent owed.
Find your ideal private student accommodation with Caro Lettings
At Caro lettings, we provide a range of fully furnished, luxury en-suite apartments for students looking for accommodation in the heart of the city or close to the best student hotspots in Liverpool.
Our accommodation is fully equipped with everything you’ll need to make your stay comfortable, including beds and wardrobes, LCD TV, free broadband and spacious communal kitchen facilities.
It’s quick and straightforward to book a viewing and secure your accommodation. We can take you through the process from start to finish, including advising on your guarantor and completing the necessary checks.
Looking for your new student accommodation in Liverpool ready for the next academic year?