The guarantor when requesting a rental: Why is this requested and how does it work?

In the search for a rental property, you regularly encounter the requirement that a “guarantor” is required to sign the rental contract. For many home seekers, especially students, starters or people just starting a new job, this is a familiar barrier. Landlords do not set this requirement to make the process unnecessarily complicated, but purely as a form of risk management.

Essentially, a guarantee is an additional financial security for the landlord. It means that a third party (usually parents or family members) is legally obliged to take over the rent payments if the tenant is no longer able to do so himself. This tool is mainly used when the tenant's profile on paper represents an increased financial risk for the owner of the home.

Why hosts require a guarantee

The Dutch rental market is highly regulated and tenants enjoy a high level of protection. For a landlord, the process of getting a tenant who is in arrears out of the home is lengthy and costly. That is why they try to fully cover this risk at the front.

Insufficient or irregular Income

The most common reason is that the tenant does not meet the income requirement. As discussed earlier, many landlords demand a gross income of three to four times the basic rent. A starter with an excellent salary that is just below that limit, or a student with a side job and student loans, is too big a risk without a guarantor.

Temporary contracts or probation

Even if the income is high enough, the nature of the employment contract may be a reason. Someone with a six-month temporary contract or an employee who is still on probation offers less long-term security. A guarantor covers the uncertainty of a possible loss of income.

Entrepreneurs and self-employed persons (freelancers)

Entrepreneurs who are less than three years of annual results are often viewed with suspicion by professional landlords. Because income can fluctuate, the landlord requests a guarantee to ensure the continuity of the rental flow.

The legal meaning of the guarantee

When someone signs as a guarantor, they assume a heavy obligation. Most leases include a “joint and several liability” clause.

What does this mean in practice? If you do not pay the rent, the landlord does not have to try extensively to get the money from you through collection processes first. He can directly knock on the door of the guarantor and demand that he pay the full amount (including any fines and costs).

The guarantor is not only responsible for the monthly rent, but often also for any damage to the home that is not covered by the deposit upon departure. So it is a commitment that goes beyond just a symbolic signature.

What does a guarantor have to comply with?

A landlord does not accept just anyone as a guarantor. After all, the guarantor himself must also have sufficient financial capacity to bear the extra burdens.

• Income requirements: The guarantor must often be able to demonstrate an income that is significantly higher than that of the tenant (sometimes up to five or six times the rent), because they must also be able to pay their own housing costs.
• Living in the Netherlands: Almost all Dutch landlords require that the guarantor lives and works in the Netherlands. This has to do with legal enforceability; it is much easier for a landlord to seize income in the Netherlands than abroad.
• Documentation: Like the tenant, the guarantor must provide a complete file, including payslips, employer statement and a copy of the identity document.

Alternatives if you don't have a guarantor

Not everyone has the luxury of parents who are financially able or willing to act as a guarantor. In that case, there are a few alternatives you can suggest to the landlord:

1. Higher deposit: Sometimes a landlord agrees to cancel the guarantee if you are willing to pay an extra month of deposit. Please note that there are legal limits for the deposit (usually two months' rent).
2. Prepay rent: For people with savings, it may be an option to pay the first three to six months' rent immediately at the start. This reduces the immediate risk for the landlord.
3. Bank guarantee: You can apply for a bank guarantee from your bank. The bank then guarantees a certain amount. This is very safe for a landlord, but expensive for you as a tenant, because the bank charges a fee and the amount often has to be in a blocked account.

The guarantor as the key: This is how you stand a chance without a high income

The requirement for a guarantor is a direct result of the tension in the housing market and the risk-aversion of landlords. Although it is an extra barrier for the tenant, it also offers opportunities for those who do not meet the heavy income requirements on paper but have a reliable network. Always make sure that the guarantor understands what he is signing for and make clear agreements so as not to burden the relationship.

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