To cut a long story short, a guarantor can be used twice when supporting other tenants with their rent as long as they can afford it. Having said this, affordability checks will still need to be done and each check considers other agreements and the preferences of the landlord.
Nonetheless, there are a few things you need to be aware of as you read this which is why it is worth reading this article in detail. Also, there are multiple scenarios to consider including becoming a guarantor more than twice that are considered in this article.
However, if you are becoming a guarantor for the first time, there are a lot of details that aren’t covered in this article so we suggest you read our article on rent guarantors here.
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Can you be a guarantor for two or more renters?
Technically speaking you can. In fact, you can be a guarantor for as many renters as you want. A guarantor usually needs to earn around three times the rent of a tenancy they are covering.
In order to work out how much a guarantor needs to earn in the first place, reading our article will mean you will mean the guarantor will have to earn around three times the rent.
However, for two renters, the new assessment may still be three times the rent or it may be more.
Depending on who is doing tenant referencing, there is a chance that the landlord will only accept a guarantor who earns more than three times the rent if they are a guarantor already.
For instance, if there is a guarantor who earns three times the rent for the first tenancy they are covering, they may be asked to earn four or five times the rent for any additional tenancies that they cover.
This is because the more the landlord takes on, the more risk they take on. If two or more tenants default on their rent in the same time period, the guarantor may fall short of money.
Given the guarantor is the last option for landlords to collect rent before a tenant falls into rent arrears, a landlord would want to avoid guarantors who have additional risk by covering multiple tenancies in this way.
Do letting agents and landlords accept this?
No, a letting agent and landlord may have a strict policy that they do not accept guarantors who are already covering someone else’s rent. You would have to go through the guarantor referencing process to find out.
It also depends on in depth the check on a guarantor is. Some landlords would need proof of income in order to assess if you are eligible to be a guarantor whereas others will not check this at all.
Do landlords accept someone being a guarantor twice in the same property?
If a landlord has a property with multiple tenants, it is more likely that they accept a guarantor who covers both tenants if they are to accept someone who covers multiple tenants at all.
For instance, if there are two siblings related to each other in one property and they were each renting a room of a house, the landlord may find it desirable to find a relative like the siblings parents to become the rent guarantor for both of them.
Is it acceptable to be a guarantor twice in different properties?
It is acceptable if the landlord and letting agent allow you to be based on their referencing criteria. For instance, if the letting agent does the right check and is able to find out that you, as a guarantor are able to afford it, they may.
This check to see if you can afford it may involve multiple different things. For example, they may check credit score, earned income, any savings the guarantor has or even if they are a guarantor for other loans.
Can you be a guarantor for a loan and a renter at the same time?
As you may be aware, there are guarantors that sign to guarantee rent for both renters and for loans. For instance a guarantor could use their finances to sign to guarantee someone else can make their loan repayments.
In the exact same way there is a chance that the landlord could be guaranteeing the finances for a renter. In fact, it is okay for a guarantor to make payments for a renter and a loan at the same time.
Nonetheless, there has to be the right credit check in place as some referencing processes show that the guarantor is already involved in another assessment.
For example, if a guarantor is already a guarantor for a loan, this would show up in their credit check and if they want to become a guarantor for a renter as well, the landlord or letting agent who assess the guarantor for the renter may see their agreement for the loan.
In cases like this, they may choose to ignore it or process the application in the same way, depending on the size of the loan.
What are the requirements for a guarantor to sign up twice?
There are no direct requirements for becoming a guarantor twice. However, it is very likely that the guarantor would have to earn three times the rent if not more if they already are a guarantor for another property.
For every other property that they become a guarantor for thereafter, the guarantor would have to earn more and more to cover the additional risk they take on.
Does the guarantor signing up twice have to live in the UK?
For the majority of cases, a landlord will look for a guarantor that is living in the UK. This is because they are able to look at their UK bank account and make sure that any documents that are given are regulated by UK law.
It is common for guarantors who are overseas to use fake documents that seem legitimate but do not add up.
On top of this, the landlord may want to do a soft credit check on the guarantor before they sign them on the tenancy agreement for a tenant. So whethether the guarantor is signing up once or twice, it is desirable for the tenant to live in the Uk
When does the guarantor’s liability end?
A guarantor who has signed up twice will have their agreement end whenever the tenancy agreement for the landlord ends. This means the tenant is in charge of when the guarantor’s liability ends.
Nonetheless, it is important the guarantor knows exactly what the terms are for the agreement with the landlord and the tenant so there are no surprises about the guarantor’s liability.
What should you do if the guarantor you want is already a guarantor?
In the event that you cannot find a guarantor that isn’t already guaranteeing someone else’s rent, there are some things you may be able to do to make sure you’re able to still rent the property you’re interested in.
For example, if you are able to convince the landlord that the guarantor is still able to afford the guarantor for the second rent they are signing for.
You can do this by issuing bank statements, paying rent up front so it is less likely you run into rent arrears in the first place or even showing the landlord how much the guarantor has in savings.
Can a tenant have more than one guarantor?
No, usually if the original guarantor for a property is not suitable, a new individual will be found. Multiple guarantors defeats the purpose of having an eligible suitor to sign on as part of a tenancy agreement.
It is a good idea to ask friends and family in order to find a guarantor that is suitable so you only need one.
What happens if a tenant has more than one guarantor?
When a tenant has more than one guarantor, it usually implies that the initial guarantor wasn’t deemed financially capable to cover the risks.
However, in most cases, landlords or letting agents might find this redundant or against their policy.
Having more than one guarantor could muddle the responsibility, reducing the essence of a guarantor’s role as a secure fallback. Furthermore, this scenario would also require additional checks and assessments, adding to the process’s complexity.
Ultimately, it’s far more efficient and safer to identify one guarantor who meets all the criteria such as sufficient income, good credit score, UK residency, etc., rather than splitting the responsibility amongst multiple guarantors.
When should a tenant have more than one guarantor?
A tenant should ideally not seek multiple guarantors.
The guarantor system is built on the premise of a single individual, preferably with a strong financial foundation, taking responsibility for the rent if the tenant fails to meet their obligations.
Having more than one guarantor could complicate the agreement, increasing the administrative effort, and possibly raising questions about the financial stability of the tenant.
Instead of trying to find multiple guarantors, a tenant should focus on ensuring the chosen guarantor meets the requirements set by the landlord or letting agent, such as earning three times the rent or more, having a stable credit score, and residing within the UK for efficient financial checks.