A lease guarantor is a third party who assumes financial responsibility for a lease agreement should the primary tenant default. For example, if a tenant fails to pay rent or damages the property beyond the security deposit, the individual backing the lease becomes liable for the outstanding costs. This individual provides an additional layer of security for landlords.
This added security reduces the landlord’s risk, making them more likely to approve applicants who might otherwise be considered high-risk, such as students, individuals with limited credit history, or those with lower incomes. Historically, securing housing has often required significant upfront financial resources. The option of having a third party assume some of that risk broadens access to housing for a wider range of individuals. This can be particularly beneficial in competitive rental markets.
