What is a lease guarantor form?

Lease Guarantor Forms: Why are they Used?

A lease guarantor form is a document that involves a third party, known as a guarantor, who agrees to take on the financial obligations of a lease agreement if the tenant fails to do so. This form is typically used when a tenant does not meet the financial requirements to rent a property on their own, such as having insufficient income, a poor credit history, or being a student or first-time renter without a rental history.

The guarantor, who is often a parent, relative, or close friend of the tenant, signs the lease guarantor form to assure the landlord that rent payments will be covered in case the tenant is unable to pay. This arrangement reduces the risk for landlords and property managers, making it more likely for them to agree to rent to someone who might not otherwise qualify on their own.

The responsibilities of a guarantor can include covering unpaid rent, property damages, and other financial obligations outlined in the lease agreement. It's a significant commitment because the guarantor is legally bound to fulfill these obligations should the tenant fail to do so, which can affect their own financial situation.