A guarantor, often called a co-signer, is a third party who enters into a legal agreement to take responsibility for the tenant's financial obligations, such as rent, damages, or cleaning fees, should the tenant default on their lease. This individual undergoes their own screening process and must sign a 'Guaranty of Lease' document. In Florida, the guarantor is essentially an insurance policy for the landlord, ensuring that there is a solvent party available to cover costs if the primary tenant fails to meet their obligations.
How It Applies to Florida Landlords
Landlords often require a guarantor for applicants who have insufficient credit history, lower income levels, or lack of rental references. Before accepting a guarantor, verify their income and creditworthiness just as you would for the primary tenant. Ensure the guaranty agreement is notarized or witnessed properly, as this strengthens your position should you ever need to pursue a collections claim in court. Note that in Florida, a guarantor is usually liable for the entire duration of the lease term, including any renewals, provided the agreement is clearly worded.
Key Takeaways
- Guarantors provide financial security for tenants with poor credit.
- Require the guarantor to complete a full application and background check.
- Use a clear, written 'Guaranty of Lease' agreement.
- The guarantor remains liable if the tenant breaches the lease.