At Harrison Carter Group, one of the most common questions we hear from landlords is:
“Should I ask for a co-signer or guarantor?”
The answer? Sometimes, but it should never replace thorough tenant screening.
A co-signer/guarantor is someone who agrees to take financial responsibility if a tenant doesn’t meet the obligations of the lease. They can provide additional security when an otherwise qualified applicant has limited credit, a short rental history, or is just getting established.
Used properly, a guarantor can help reduce risk. Used improperly, it can create unnecessary legal complications.
Key Takeaways:
- A co-signer/guarantor agrees to be financially responsible if the tenant defaults on their lease obligations.
- A guarantor should support your screening process—not replace it.
- The agreement should clearly outline exactly what the guarantor is responsible for.
- A guarantor may be appropriate for brand new renters, applicants with limited credit history, or those who haven’t yet established rental history or who may have trouble proving any rental income.
- Harrison Carter Group helps landlords across London, Ontario with professional tenant screening, leasing, and property management.
What Is a Co-Signer/guarantor for Rent?
A co-signer/guarantor is someone who agrees, in writing, to assume financial responsibility if the tenant fails to meet their obligations under the lease.
Important to note: the guarantor does not live in the property. Their role is simply to provide additional financial security for the landlord. They are not a legal tenant under the R.T.A.
At Harrison Carter Group, we recommend using a guarantor agreement rather than adding someone as a co-tenant on the lease. This provides financial protection without unintentionally creating additional tenancy rights.
A guarantor may make sense when an applicant:
● Has limited credit history
● Has recently started a new job
● Has limited income documentation
● Has little or no previous rental history
● Has experienced past credit challenges but has otherwise demonstrated strong rental qualifications
● New Bankruptcy or new consumer proposal
Remember, requesting a guarantor should be based on the applicant’s overall financial profile—not on assumptions about age, disability, family status, race, or source of income. Ontario’s Human Rights Code protects applicants from discrimination, and every application should be assessed fairly and consistently.
What Does a Co-Signer/Guarantor Agreement Mean?
A co-signer/guarantor agreement is a legal document in which another person agrees to fulfill the tenant’s financial obligations if the tenant defaults.
For landlords, this is simply another layer of protection.
However, the agreement must be drafted clearly. A vague guarantee can become difficult to enforce if issues arise later.
Every guarantor agreement should clearly identify:
● Who the tenant is
● Who the guarantor is
● The rental property address
● Which obligations are guaranteed
● Whether the guarantee covers rent only or other lease obligations
● When the guarantee begins
● Whether it continues after the lease becomes month-to-month
● How notices will be provided to the guarantor
One of the biggest mistakes landlords make is assuming a guarantee automatically continues after the initial lease term. If you want the guarantor to remain responsible once the tenancy converts to month-to-month, the agreement should say so expressly.
At Harrison Carter Group, we always recommend using the Ontario Standard Lease together with a professionally drafted guarantor agreement. It provides better protection for landlords while avoiding the complications that can arise from adding another tenant to the lease.
When Should Landlords Ask for a Co-Signer/Guarantor?
A co-signer /guarantor should never be requested simply because “it feels safer.” Instead, the decision should be based on a measurable rental risk identified during the screening process.
According to the Canada Mortgage and Housing Corporation (CMHC), affordability continues to be one of the biggest challenges facing renters. In fact, 22.1% of renter households were in core housing need in 2022, and 88.4% of those households were considered to have affordability challenges.
For landlords, this reinforces something we’ve believed for years at Harrison Carter Group—you can’t make leasing decisions based on one piece of information.
Instead, you should be looking at the complete picture:
● Income and affordability
● Credit history
● Employment stability
● Rental history
● References
● Overall application strength
Sometimes an applicant checks almost every box but simply hasn’t had enough time to build their credit or rental history. That’s where a co-signer/guarantor may make sense.
When Does a Co-Signer/Guarantor Make Sense?
At Harrison Carter Group, we may recommend a co-signer/guarantor when an applicant is otherwise well-qualified but could benefit from additional financial backing.
Common examples include:
● Students renting their first home
● Newcomers to Canada
● Applicants with limited credit history
● First-time renters
● Someone who has recently started a new job
● Applicants with inconsistent income documentation
● Limited landlord references
● Strong applicants who simply need additional financial support
The important point is this:
A co-Signer/guarantor should support your screening process—not replace it.
We still verify employment, income, credit, references, identification, previous landlords, and the overall strength of every application.
Our goal isn’t simply to rent the property.
Our goal is to place the right tenant.
That’s the difference.
How Does a Co-Signer/Guarantor Agreement Work?
A co-signer/guarantor agreement is a legal document that outlines the financial responsibility of the person agreeing to support the tenant.
At Harrison Carter Group, we generally recommend using a separate guarantor agreement rather than adding someone as another tenant on the lease. This provides financial protection for the landlord without unintentionally giving the guarantor tenancy rights.
Every agreement should clearly identify:
● The landlord
● The tenant
● The co-signer/guarantor
● The rental property address
● Monthly rent
● What financial obligations are being guaranteed
● Whether the guarantee continues if the tenancy becomes month-to-month
● Contact information for notices
● Dates and signatures
The agreement should always be completed before possession is given and stored with the tenant’s lease documentation.
We also recommend avoiding generic online templates. Ontario’s Residential Tenancies Act and Standard Lease have specific requirements, and your documents should work together—not contradict one another.
Co-Signer vs Guarantor: What Is the Difference?
This is one of the most common questions landlords ask us.
Although people often use the terms interchangeably, they’re not exactly the same.
A co-signer typically signs the lease alongside the tenant and may become a party to the lease. A co-signer could be a partner in a relationship.
A guarantor usually signs a separate agreement promising to fulfill the tenant’s financial obligations if the tenant defaults. This is someone who is NOT living in the rental.
At Harrison Carter Group, we generally recommend using a guarantor agreement. It provides the financial protection landlords are looking for without creating unnecessary questions about occupancy or tenancy rights.
| Role | Purpose |
| Tenant | Lives in the rental home and is responsible for the lease. |
| Co-Signer | Signs alongside the tenant and may share legal responsibility under the lease. Lives in the rental home and is responsible for the lease. |
| Guarantor | Signs a separate agreement guaranteeing the tenant’s financial obligations if they default. Does NOT live in the home. |
The most important thing isn’t the title.
It’s making sure everyone clearly understands their responsibilities before signing.
What Should a Co-Signer/Guarantor Agreement Include?
A properly drafted co-signer /guarantor agreement should clearly explain what financial obligations are being guaranteed.
It should address:
● Monthly rent
● Rent arrears
● Legally recoverable damages
● Additional lease charges
● Renewal and month-to-month tenancy
● Communication and notices
● Early termination obligations, where applicable
The co-signer/guarantor should also provide:
● Government-issued identification
● Current address
● Contact information
● Employment information (where applicable)
● Consent to screening
At Harrison Carter Group, we don’t treat a guarantor as simply another reference.
They’re an important part of the overall risk assessment when approving an application.
Need Help Deciding Whether a Co-Signer/Guarantor Is Appropriate?
Every rental application is different.
Some applicants need a guarantor.
Many don’t.
The key is knowing when it’s appropriate—and making sure your screening process is fair, consistent, and legally compliant.
At Harrison Carter Group, we’ve helped thousands of landlords across London, Ontario make confident leasing decisions through professional:
● Tenant Placement
● Tenant Screening
● Credit & Income Verification
● Reference Checks
● Lease Preparation
Whether you’re renting one condo or an entire portfolio, we’re here to help you reduce risk while finding great long-term tenants.
Conclusion
A co-signer /guarantor can be an excellent tool when used appropriately—but it should never replace a thorough screening process.
The best leasing decisions are based on verified information, not assumptions.
If you’re looking for help with tenant screening, tenant placement, leasing services, or property management in London, Ontario, contact us today to help protect your investment and make renting your property easier.
Frequently Asked Questions
Can I ask for a Co-Signer / Guarantor in Ontario?
Yes. Ontario landlords can request a co-signer /guarantor when it is based on legitimate financial risk, such as limited credit history, unprovable income, or lack of rental history. Requests should always be applied consistently and comply with the Ontario Human Rights Code.
Is a Co-Signer/Guarantor responsible for unpaid rent?
Yes—provided the agreement clearly states that they are responsible. A properly drafted guarantor agreement should specify exactly which financial obligations are covered and whether the guarantee continues after the initial lease term.
Does having a Co-Signer/Guarantor replace tenant screening?
No. A co-signer/guarantor is simply one part of the overall approval process. Landlords should still verify employment, income, credit, landlord references, identification, affordability, and overall application quality.
Should I use a separate Guarantor Agreement?
In most Ontario rental situations, yes. A separate guarantor agreement generally provides better protection and avoids unintentionally creating additional tenancy rights that can arise when someone signs the lease as a co-tenant.
Why does Harrison Carter Group recommend guarantors?
Our goal is always to place A+ tenants, not simply approve applications. A guarantor can strengthen an otherwise excellent application, but only after we’ve completed a thorough screening process. It’s one more tool that helps protect our landlords while giving deserving applicants an opportunity to secure a great home.
