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In a rental transaction, there are instances when the renter or tenant is unable to meet the financial requirement stipulated by the landlord, and in this case, the renter can work with a guarantor. They are a third party who co-signs the rental contract with the tenant, who binds himself financially and legally.
Before signing the contract, the guarantor must understand all the terms and conditions they are agreeing to. In addition, he must create a letter called rental guarantor letter that solidifies his approval to serve as a guarantor who has a financial commitment and responsibility should the tenant forfeit the contract. With that said, you can refer to the rental guarantor letter examples below to serve as your guide.
A rental guarantor letter does not need to be lengthy. Instead, a one-page letter will do, such as the apartment rental guarantor letter example presented above, provided that it contains the essential elements of a guarantor letter such as the following: the guarantor’s name, address, and contact details; date of the issuance of the guarantor letter; address of the company requiring the guarantee; the responsibility that the guarantor is shouldering; terms and modes of payment; and other information as requested by the landlord, for example, bank account number, annual income, social security number, home and office address, and date of birth. This would ensure the landlord that you have the credibility to stand as a guarantor in case the tenant will fail to pay for the apartment rent.
In this parental rental guarantor letter, the parent of the tenant promises to assume the responsibility to pay for the monthly rent payment stated in the contract in case the tenant failed to do so. In the letter, the guarantor must provide the following information: the name of the guarantor or parent, the monthly amount of payment guaranteed, the name of the renter, the complete address of the property, the amount of deposit, the driver’s license number, the date of birth, the guarantor’s home address, the guarantor’s contact details, the employer’s name of the guarantor and contact information, the guarantor’s monthly income and his position of the company, the length of the guarantor’s employment, the guarantor’s signature, and the date of the letter.
As can be seen from the rental and repair guarantor letter example above, apart from the rental payment, the guarantor also guarantees to pay for repairs or any damages caused to the said rental property for which the tenant, his or her visitor or invitee, or any person under the control of the tenant is responsible. Furthermore, in case the issue will be raised to the court, the guarantor also agrees for the eviction, collection, and other legal proceedings as well as reasonable attorney fees. The laws governing the stipulations must also be clearly identified and included in the letter. Finally, the guarantor must affix his or her signature at the bottom of the page, verifying the authenticity of the formal letter and to make the document valid and binding.
In this guarantor letter example, the letter is divided into five general topics: firstly, the statement of the guarantor assuming the financial responsibility and promising to perform all the terms and conditions of the cottage rental upon the renter’s failure to do so is presented; secondly, the name and address of the tenant is specified; thirdly, the guarantor’s personal information is provided, such as the name, social security number, date of birth, phone number, address, email address, employer’s name and contact number, present salary, other income, and source of income; fourthly, the statement of execution of agreement; and finally, the notarization, which must include the date and place where the document is notarized and the signature of the notary public.
The guarantor must see to it that all the terms of the agreement must be specified in the contract before he or she will issue the guarantor letter. Typically, this letter is for rental property where the landlord wanted to secure the rental payments in case of the default by the renter. Just like this rental property guarantor letter, the guarantor must acknowledge that he or she will bear the responsibility for the payment given the fact that the tenant has insufficient credit or income to qualify for the rent. Moreover, they can also stipulate regarding who will pay for the repairs, maintenance, cleaning, utilities, and many others.
Renting a real estate requires one to be financially capable in order to meet the payment dues. However, in case the potential tenant’s income would not suffice, he or she can ask for someone who will guarantee his or her payments—the guarantor. As a guarantor, you are not only responsible for the payments and other rent obligations; instead, you must also be responsible for creating a guarantor letter specifying the amount you would pay as well as the acknowledgment of the possible financial burden. Hence, in order to start creating a letter, you may refer to the example above which will serve as a guide in having the first step to your letter creation.
Included in this document are the co-signer application and rental agreement and the letter of guarantee. The co-signer refers to the guarantor, who will co-sign the contract with the tenant and who will provide a letter of guarantee. In most cases, proof of income is also attached to this letter. Examples of proof of income are the current pay stub, the most recent tax return, and the last two bank statements.