When it comes to renting property, landlords and tenants often enter into a shorthold tenancy agreement. This type of agreement is usually for a fixed term of six or 12 months and can be renewed at the end of the term if both parties agree.
However, in some cases, a landlord may require a guarantor before agreeing to a shorthold tenancy. A guarantor is someone who agrees to pay the rent if the tenant cannot. This is often required when the tenant has a low credit score or insufficient income to cover the rent.
A shorthold tenancy agreement with a guarantor is a legally binding document that outlines the terms and conditions of the rental agreement. It covers issues such as rent payments, responsibilities of the landlord and tenant, and the duration of the tenancy.
In this type of agreement, the guarantor’s obligations are also stated. The guarantor agrees to pay the rent if the tenant fails to do so or causes damage to the property. The guarantor is also responsible for any other costs incurred as a result of the tenant’s breach of the tenancy agreement.
It’s important for both the landlord and the tenant to understand the terms of the shorthold tenancy agreement with a guarantor before signing it. The agreement should clearly state what the tenant and guarantor are responsible for and what the consequences will be if either party fails to meet their obligations.
If the tenant defaults on their rent payments or causes damage to the property, the landlord can make a claim against the guarantor. The guarantor may also be liable for any legal expenses incurred by the landlord in enforcing the terms of the agreement.
In conclusion, a shorthold tenancy agreement with a guarantor is a common arrangement in the rental market. It provides assurance for the landlord that they will receive their rent payments, and for the tenant, it allows them to secure a property they may not have otherwise been able to. However, it’s important to understand the terms of the agreement before signing and ensure that both parties are clear about their responsibilities.