In a competitive student housing market, the apartment search can be overwhelming. Most properties come with a list of requirements to ensure that you are a viable tenant. You may have heard property managers say that they will require a guarantor on the lease. This may seem strange or confusing and you may be wondering what that means. Don’t worry! Here is a guide to everything you need to know about the guarantor role.
What is a Guarantor?
A guarantor is a co-signer, someone who signs the lease agreement with you. They are responsible for paying the rent if you become unable to do so. This could be a parent, a relative or a friend who is willing to be legally responsible for the apartment.
Why Do You Need a Guarantor?
As a student, you may not meet the income requirements that landlords have to sign a lease on your own. This is where a guarantor steps in. A guarantor can co-sign the lease to assume financial security should the student not be able to pay the rent. Even if you plan to pay the monthly rent with savings or income, having a guarantor on the lease provides the landlord with some peace of mind.
First time renters or people with little credit history usually need a guarantor to establish financial responsibility. Students might not have had much time to build up credit. Landlords usually ask for co-signers with good credit history to ensure that the rent will be paid if the tenant is unable to. If a relative becomes your guarantor, this means that that if you do not pay the rent and associated costs such as utilities, the property can hold your relative financially responsible for the outstanding charges.
What are the Requirements for a Guarantor?
Although this can vary, most apartments require guarantors to show that they have a sound credit history and make an annual income of at least three times the rent. The guarantor is generally not required to pay anything in order to co-sign the lease and secure your approval, but will likely need to share a bank statement or tax return in order to prove financial viability.
At Auden Living, we understand that the guarantor process can be challenging. This is why we provide support and resources to help guide you through the guarantor process. We encourage you to reach out to any of our properties for additional information on guarantors and lease agreements.