A guarantor letter is a type of letter where a person or business (the guarantor) agrees to assume responsibility for another person or business (the principal), where there is any forfeiture in terms of the contract or agreement. It is an important, legally binding document required in a lot of situations.
For example, a landlord or accommodation manager may request a letter of guarantor if he thinks the prospective tenant may default in rent payment or may not follow the tenancy terms.
In totality, anyone who is willing to become a guarantor must thoroughly be aware of the terms that he/she is agreeing to and understand it properly. A formal letter is always requested, and this letter ( called ‘guarantor letter’) documents the terms and conditions or agreements.
Types of Guarantor letter
Here are the types of Guarantor letter:
Property/Rental Guarantor Letter
A property guarantor letter is usually required when renting out or leasing out a house, room, or property. Landlords, real estate firms will ask for a property guarantor letter when giving out their property for rent or lease.
The landlord requires the guarantor letter from the tenant who gets it from the guarantor. The letter will indicate the responsibility of the guarantor.
The Guarantor may be asked to act as a referee testifying to the good behavior of the tenant.
Employment Guarantor Letter
New employees usually request an employment guarantor letter from their employers. It is highly important as it is a way of vouching for the good behavior of the employer.
Where the new employee destroys the company property, the guarantor bears the responsibility. Most companies require two employment guarantor letters, as this is a way of checking the employees’ behavior.
Loan Guarantor Letter
A loan Guarantor letter is usually required from any financial institution (banks, lending-agency, etc.) to the debtor. It is the most requested type of guarantor letter.
In the case where there is a loan default, the financial institution can get their money back. The guarantor will pay on behalf of the loan defaulter.
Guarantor letter sample
Here are some guarantor letter samples
I, [your full name], bearer of passport number [the number of your passport], issued by [who issued it] on [when it was issued], take full financial responsibility for the travel to [name of the country in question] of [full name of the person who is applying for a visa], bearer of passport number [passport no. of the person], issued by [who issued it] on [when it was issued].
The intended period of stay is from [date of arrival] to [date of departure]. [full name of the person who is applying for a visa] will be studying for a [type of degree] in [course of study] from [university of study]. I guarantee that I will cover all of the following expenses :
Other expenses incurred during the duration of the stay.
I declare that the aforementioned information is true and that I understand the implications of this letter.
company letter head]
[name of the embassy]
We ask you to kindly issue a [visa type] for [name of employee], bearer of passport number: [number of employee’s passport], issued by [who issued it] on [when it was issued]. [employee’s name] works for [name of your company] in [company’s location] since [date of employment] on the position [employee’s position].
They will require a visa from [date of arrival] to [date of departure]. During their stay in [country of destination], [employee’s name] will be attending the [name of the foreign company] conference, whom you can reach on [contact information of the company].
[Your company] in [your country] guarantees to cover the following expenses:
Expenses in the country for the duration of the stay.
To Whom It May ConcernI, Martha Collins, declare that Ms. Samantha Lewis enters the country for the purpose of her job in the company, WeCreate Corp..I shall guarantee to provide the applicant with the following:I shall supervise the applicant to ensure she will not engage in activities other than what is permitted for entry into the country and abide by the laws and regulations of the country.All living expenses and return travel expenses will be shouldered by me during the duration of the applicant’s stay in the country in case she is unable to pay.In the event of any legal proceedings, I shall be the guarantor for the applicant.Regards,Martha Collins
Dear Anna LeeGood day!On behalf of the recruitment team, I, Martha Collins, HR Executive of GMT Corporations, am writing this letter to inform you that you have fallen short of a few points to acquire the position of Content Writer that you applied for in this company. However, because of your competitive qualifications and solid experience, we are offering you a guarantee for such a position whenever another one comes up.It was a hard decision for us to deny your application. We will reach out to you as soon as something comes up.Regards,Martha CollinsHR Executive, GMT Corporations