Room Lease Agreement With Guarantor
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FAQ
A guarantor is an individual that agrees to pay a borrower's debt if the borrower defaults on their obligation. A guarantor is not a primary party to the agreement but is considered to be an additional comfort for a lender.
The primary difference between a co-signer and a guarantor is how soon each individual becomes responsible for the borrower's debt. A co-signer is responsible for every payment that a borrower misses. However, a guarantor only assumes responsibility if the borrower falls into total default.
Typically, one guarantor is enough for roommates, but some landlords will specify whether every applicant needs their own guarantor or if only one will be accepted.
For individual leases, you and your guarantor are only responsible for your bed space and common areas. So, if you have other roommates in your unit, they would not be covered by your guarantor. Your roommates would sign separate leases and have their own guarantors.
A guarantor's form should include a space to fill in the home address, work address, phone number, and email address. The contact details are what will be used to contact the guarantor in the future if the principal fails to meet agreement terms. This is a very important feature of the guarantor's form.