What Is the Downside with Accepting an Individual as a Guarantor?

Your tenant has stopped paying rent and you don’t know what to do. It’s the nightmare scenario for any landlord. But don’t worry, your tenant has provided a guarantor – they will pay the rent instead.

In the ideal scenario, this is exactly what happens. The problem is resolved quickly, and the guarantor either pays the rent or convinces your tenant to pay up. However, things don’t always work out this way.

What Could Go Wrong?

If you have accepted an individual as a guarantor for your tenant, you may experience a few problems getting them to pay the rent that is due.

For a start, they might be hard to reach. It’s amazing how difficult people can be to reach when they know they owe someone money. You might be able to contact them, but they may ask for more time to convince the tenant to pay the rent so they don’t have to.

In fact, they may decide they don’t want to pay the rent after all, in which case it can suddenly become a bit of a problem for you. All kinds of scenarios can arise, causing you a lot of stress and a big headache.

The truth is, a lot of people agree to be a guarantor without actually stopping to think about the consequences. They might do it as a favour to a friend or family member, and then when things go wrong and they realise they are responsible for paying the rent, the situation can become tricky. They might not even be able to afford the rental payments.

The Alternative – Use a Rent Guarantor Service

While it is very common to accept an individual as a guarantor, it is not the only option. You may have doubts about the guarantor your tenant wants to use, or perhaps you don’t believe they will be able to cover the rental payments. In this case, a rent guarantee service can be useful.

Ezylet provides a rent guarantor service for tenants in this situation, and you could ask your tenant to arrange this instead of an individual guarantor. It’s also a great option where they cannot find a guarantor but you suspect they will be a good tenant.

With this service, there is no need to rely on a guarantor with all the risks this could bring, there is no need to take legal action when your tenant does not pay, and you get peace of mind in knowing that you will always get paid your rent on time.

Always Consider the Alternatives

Accepting an individual as a guarantor may be standard practice, but it can bring problems when your tenant is unable to pay the rent. Always be aware of the risks, and consider the alternatives like a rent guarantor service instead.

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