What responsibilities does a guarantor have?

A guarantor agrees to meet specified financial obligations if the tenant fails to do so. The exact responsibility depends on the written guarantee, the tenancy agreement & the law that applies.

The agreement may cover unpaid rent & other losses arising from a breach of the tenancy terms. With a joint tenancy, it is particularly important to check whether the guarantee applies to the full tenancy or only a defined responsibility.

Before agreeing to be a guarantor

• Read the whole agreement & ask what payments it could cover.
• Check whether there is a monetary limit or a defined duration.
• Understand what happens if the tenancy changes or tenants move out.
• Keep a copy of everything you sign.
• Ask for independent advice if any obligation is unclear.

There are legal limits on some guarantee obligations, including protections in England relating to rent after a tenant’s death. A guarantee cannot override applicable law.

Being a guarantor is a significant commitment, so nobody should sign without understanding the possible financial consequences.