Guarantor Guide for Student Housing: What You Need

What Is a Guarantor in Student Housing?

A guarantor is a third party, typically a parent or guardian, who signs a legal tenancy agreement in UK or in other country to be financially responsible for your rental. If you fail to pay your rent or cause damages beyond your security deposit, your landlord can pursue your guarantor for the costs. For international students, this can be particularly challenging, as many landlords require the guarantor to be from the same country.

Why Do Students Need a Guarantor?

A guarantor signs a legally binding student housing contract to pay your rent and cover other costs, such as property damage. They serve as a financial backup, giving landlords reassurance that the rent will be paid, even if you face financial difficulties.

Typical Guarantor Requirements

While specific requirements vary, landlords usually have a list of criteria that a guarantor must meet:

• UK Residency: For international students, this often poses the biggest challenge. Most landlords insist that a guarantor live in the UK so that legal action can be taken more easily if necessary.
• Financial Stability: Your guarantor must have a stable income and meet specific income thresholds, often a multiple of the annual rent. For example, some landlords require a guarantor's income to be at least 30 times the monthly rent.
• Good Credit History: A credit check will typically be performed to ensure the guarantor has a good credit score.
• Documentation: They must provide proof of identity, address, and income through documents like payslips or tax returns.

What If You Don’t Have a Guarantor?

Finding a personal guarantor who meets all the requirements can be a significant challenge for international students. However, several effective alternatives are available:

1. Professional Guarantor Services: Companies such as Graddinghomes.com can act as your guarantor for a fee.

• How It Works: You pay the company for their service, and they become the legally binding guarantor for your tenancy. If you fail to pay rent, the company pays the landlord and then works with you to recover the funds.
• Cost: The fee for this service can vary, but it is often a percentage of your total rent.
• Co-Signer: You may be required to have a co-signer who agrees to reimburse the guarantor service if they have to cover your costs.

2. Upfront Rent Payments: Landlords may be willing to waive the guarantor requirement if you can pay a large portion of the rent upfront, typically for six to twelve months.

• Consideration: This option requires significant funds and can be risky. If the tenancy ends early or a dispute arises, it can be difficult to recover your money.

3. University Guarantor Schemes: Some universities offer their own guarantor schemes, particularly for international students.

• How It Works: Your university acts as your guarantor, provided you meet specific criteria, such as maintaining a good academic record or demonstrating financial need.
• Availability: Check with your university’s accommodation office or student union to see if a scheme is available and if you are eligible.

4. No Guarantor Housing Providers: A small number of private student housing providers and landlords have policies that do not require a guarantor.

• Look for Listings: Search for properties that explicitly state they have “no guarantor” or are “international student-friendly.”

By understanding your options, you can navigate the housing process more effectively and find a suitable place to live during your studies.

Conclusion

In summary, finding housing as an international student can be a complex process, but understanding the guarantor system is an essential first step. If securing a personal guarantor is not feasible, consider exploring alternative options, such as professional guarantor services or properties that do not require a guarantor. Starting your search early and engaging with your university’s accommodation office will help you find solutions for your housing needs.

FAQs

1. Do All Student Accommodations Require a Guarantor?

No, not all student accommodations require a guarantor. Some options include paying rent upfront, using a guarantor service, or finding accommodation that does not require one, such as university-managed housing.

2. Who Can Act as My Guarantor?

As an international student, you can have a UK-based guarantor who is a close friend, family member, or a professional guarantor.

3. What Happens If I Can’t Pay Rent and I Have a Guarantor?

If you cannot pay rent, your landlord will first seek payment from you. However, they can legally pursue your guarantor for the full amount of the unpaid rent and any other costs outlined in the guarantee agreement. If your guarantor fails to pay, the landlord can take them to court.

4. Is a Guarantor Needed for Short-Term Student Housing?

A guarantor is typically required for private student housing, but requirements for short-term stays can vary. University-owned housing, often utilised for shorter periods, is less likely to require a guarantor.

5. Do Postgraduate Students Also Need Guarantors?

Yes, postgraduate students often need guarantors, especially when renting from private landlords. The requirement for a guarantor is generally based on a student’s financial history rather than their specific course level.