Difference between a guarantor and a personal reference

Who is a guarantor?

A guarantor is a person who shoulders the financial responsibilities if the main party defaults. This person serves as a backup source of funds for the individual when they are unable to pay their rent. So, in this case, if the tenant cannot pay their rent, the guarantor will pay.  They also sign the tenancy agreement.

On Tenalet, guarantors are required to complete the application form when applying for a property as a guarantor/cosigner

Who is a personal reference?

A personal reference is someone who can vouch for your character but has no legal or financial responsibilities. They act as a character witness.

  One thing you should know is that not everyone needs a guarantor - it depends on:

• Your age/maturity

• Negotiation with landlord/agent

• Trust level

Tenalet provides the tool, but the landlord/agent decides if a guarantor is needed.

You can have a guarantor you've known for many years (like a parent or mentor) and a reference you've known for a shorter time. The length of the relationship doesn't define the role - the financial obligation does.

Can I use the same person as a guarantor and reference? 

Yes, you can. What matters is that your guarantor will be required to co-sign your tenancy agreement, making them financially responsible if you are not able to pay your rent.

Need more help? Contact support at support@tenalet.com

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