TENANTS OFTEN DEFAULT IN THE PAYMENT OF RENT LANDLORDS MAY PROTECT THEMSELVES BY TAKING A GUARANTOR
Why have a guarantee?
If the tenant defaults in paying the rent or breaches some other obligation of the tenancy, the guarantor can be required to pay. This gives the landlord an alternative means of enforcement of the agreement terms. A large percentage have little possessions or income and are often viewed as a bad risk. However, they have a much better chance of being viewed as a “good risk” if they can provide a suitable guarantor.
Can all residential tenancies be subject to a guarantee?
Yes. A landlord may require a prospective tenant to provide a guarantor for any type of tenancy.