A guarantor is someone who takes responsibility for the credit on behalf of someone else. Essentially, the guarantor agrees to accept liability for repayments if the borrower no longer has the means to make them.
Whenever you may require a guarantor?
There are many reasons why you may need a guarantor to obtain approval for your rental application. Common alarm signals that may result in a landlord requiring a guarantor include:
Credit issues
If you have limited or no credit history, poor credit, or bankruptcy on your credit report, the property manager or landlord may have concerns about whether you can pay your rent in a timely manner.
No rental history
Many homeowners or real estate managers require that new tenants have a guarantor. Once you have accumulated your rental history, you may be able to rent somewhere else with no personal deposit.
Unreliable employment history
Frequent differences in your work history may cause income problems in the near future. Or, if you're a student who doesn't have a full-time job, the landlord can ask for security that your rent will be paid, even if you have student loans or savings to cover the rental costs.
Minimal income
Many homeowners require a household income of at least three times the monthly rent in order for the tenant to afford the rent and other living expenses. Homeowners or real estate managers will ask for proof of income and may confirm this information with your current employer.
How we can find a guarantor?
Each company has its own criteria and a different fee structure. It is therefore important to examine the advantages and disadvantages of each business with care.
Insurent
Pros
Able to use liquid assets for approvals.
27.5 times the annual rental revenue requirement.
Coverage is even extended shortly after the lease expires.
Cons
There are only seven states.
Only three thousand buildings.
The signing roommates also have to apply.
Jetty
Pros
An online application is available.
Unblock deposits and tenant coverage are also available.
Available in 40 states.
Cons
Partnership properties only.
No rental protection at all.
The owner gives his consent.
Requires the use of guarantee deposit products.
Leap
Pros
Quick approvals
A replacement warranty deposit is also provided.
Cons
No rental coverage at all.
No security deposit in the building.
The signing roommates also have to apply.
Liberty rent
Pros
Sustain less than the perfect credit.
Supports unsuccessful candidates to be approved.
Straightforward application process.
Cons
$35 request fee (all tenants)
Restricted properties supported.
One app guarantee
Pros
Offers rental assistance.
Covers for damage.
Simple online payments.
Cons
The signing roommates also have to apply.
May need to obtain homeowner approval.
Rhino
Pros
Up to 24-month agreements
Security deposit replacement is also available
Available in 40+ states
Cons
Limited online information
Requires use of security deposit product
TheGuarantors
Pros
Up to 24-month agreements
Available in 40+ states
Cons
$100 cancellation fee
Requires decent to good credit
Guarantor services are different, so you should check out several options and see which feels right to you, so you can find the best fit.
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Rhino
Pros
Up to twenty-four months of agreements.
A substitute warranty deposit is also available.
Available in 40+ states
Cons
Information on the web is limited.
Requires collateral deposit product to be used.
TheGuarantors
Pros
Up to twenty-four months of agreements.
Available in 40+ states
Cons
A cancelation fee of $100.
Good credit is needed.
Vouching services are different, so you should check several options and see what suits you so that you can find the best fit.
In our previous post: "What Paperwork Do I Need to Buy a House?"