Let’s set the scene. Your child is smashing their degree; they’ve just finished house hunting and found the perfect place to stay next year. They’re on the point of booking it, when, all of a sudden, they’re hit by the requirement for a ‘guarantor’.
If you find yourself wondering what a guarantor is, whether you can act as one, or how to go about acquiring one, this blog is for you! It sets out how guarantors work within the student residential sector, as well as tips on being a guarantor or finding one with ease.
What is a guarantor?
In brief, a guarantor is someone who agrees to cover the rent of a flat or property if the current tenant (in this case, your child) suddenly finds themselves unable to.
If you’ve ever rented a property before, you may have come across guarantors. However, in most ordinary residential leases, they are only required where a tenant has a low income, a poor credit score, or is a first-time renter. This is completely different from the student residential sector, where guarantors are far more commonplace. This makes sense since students are usually first-time renters and (let’s face it) often pretty skint. It’s important to understand that having a guarantor is required for pretty much all student tenancies, so if a prospective landlord does require one, it is simply standard practice rather than a dig at your child’s financial situation.
You may not require a guarantor if your child is staying in university-owned halls of residence, as most universities trust that they will pay and deliberately time rent instalments in line with student loan payout dates. Since the majority of individuals opt to begin their student journey in uni halls of residence, this means that a guarantor may not be something your child needs to worry about until second year. Nevertheless, it is still worth being aware of, so they can nominate a guarantor in advance. This will also help remove stress or panic trying to find a guarantor in the middle of house hunting season.
Can I act as a guarantor for my child?
In most cases, yes, you absolutely can step in and act as a guarantor for your child. You will need to be aged 18 or over (21 for some agencies), and employed with a minimum income that covers your child’s rent. Your credit history may also be checked, and you’ll usually be required to provide some sort of formal documentation to verify your name and address. Asking a parent to act as a guarantor is by far the easiest option for many students, and removes any worries should they fall into financial debt.
The one caveat where you may not be able to act as a guarantor is where your child is studying internationally. Take the scenario where you live outside the UK, but your child is studying in London. Since many landlords require guarantors to have UK residency, this would be an example where you could not take the reins and act as a guarantor for your child. Obviously, this does not preclude you from still providing them with financial support, but it may make it slightly more difficult to find accommodation.
Where your child is moving in with friends, you should also check whether the contract contains joint and several liability. If this clause is enforced, you may find yourself liable to pay for any missing rent from any of your child’s flatmates – a situation you definitely don’t want to find yourself in. Make sure you ask to restrict your liability to your child’s portion of the rent and ensure that their other flatmates also have their own guarantors.
What if I can’t act as a guarantor?
There’s absolutely no need to panic if you cannot personally act as a guarantor on behalf of your child. There are many parents who are in the same position and there are still plenty of options available.
One of the best of these is getting your child to set up an account with Housing Hand. They will simply need to verify their ID and pay a £20 onboarding fee, before receiving a ‘Guarantor Passport’ that they can show to potential landlords. Once they’ve finalised their accommodation, they can then complete their application and have Housing Hand act as a guarantor on their behalf for a small monthly or annual charge.
If you don’t want to go down that route, you could also consider paying your child’s full rent in advance. Many landlords or accommodation providers do not require your child to have a guarantor if they pay 6 to 12 months of rent up-front. Obviously, this may not be possible, but can be a good option if you are struggling to find a guarantor for non-financial related reasons. Your landlord may also be willing to waive the need for a guarantor if your child can prove they have sufficient savings to cover the whole lease.
Another alternative is to stay in Purpose-Built Student Accommodation (PBSAs). Although these are privately owned, many adopt similar structures to university-owned halls of residence and are more flexible when it comes to payment plans and guarantors. However, policies can vary amongst different accommodation providers and individual sites, so this is something that is worth asking during a property viewing.
Finally, if your child is still struggling to find a guarantor, they should make use of their university’s support services. Many student unions have designated services to help with housing problems, including funding, loans and guarantors. Using them will also give your child the chance to speak with others who have experienced similar issues.
Guarantor? Problem no more!
Having to find a guarantor can feel like a frustrating road block in your child’s journey to securing their dream accommodation. However, in most cases, it is extremely simple for you to act as a guarantor or nominate one on their behalf. Being aware of the need for a guarantor and appointing one early on also means your child can focus solely on house hunting when the time comes and find a new pad that they truly love!
