A guarantor is a third party who agrees to take legal and financial responsibility for another person's obligations, such as a rental agreement, if that person fails to meet their commitments. Property management companies often require guarantors for applicants who do not meet certain income or credit criteria.

By acting as a guarantor, the individual provides an additional layer of security for the property manager. If the renter defaults on rent payments or causes damages, the guarantor becomes legally obligated to cover those costs. Like applicants, guarantors undergo screening processes including income and credit checks, as property managers must verify their financial capacity to fulfill the rental obligations if necessary.

While similar to a co-signer, a key distinction is that a guarantor's obligation is secondary: it only kicks in if the primary renter does not fulfill their responsibilities. Renters should carefully consider the legal and financial risks before asking someone to serve as their guarantor.

You can find more information in this blog post: How a lease guarantor can support your rental application.