The Guarantor Signed the Form. Can They Actually Pay?

The form sits in your file. Signed. Stamped. Official-looking.

Your tenant's guarantor confirmed everything over the phone. Yes, they know the tenant. Yes, they'll cover the rent or damages if things go wrong. Their signature proves it.

Except it proves nothing.

That civil servant who guaranteed your N2,000,000 lease earns N180,000 monthly. The math never worked. You accepted the arrangement because the form got signed.

In Nigeria's rental market, 20-40% of landlords experience fraud annually. Most had guarantors. Most had signed forms. Most discovered too late that a guarantor who can't pay is the same as having no guarantor.

Here's how to tell the difference before you hand over those keys.

The Verification Theatre Problem

Most landlords in Nigeria follow a predictable pattern.

Tenant provides guarantor name and phone number. Landlord calls guarantor. Guarantor confirms they know the tenant. The guarantor signs a form. Deal done.

This ritual verifies exactly one thing: the guarantor owns a phone and can write their name.

It tells you nothing about their financial capacity. Nothing about their employment stability. Nothing about their own credit obligations.

A civil servant earning N180,000 monthly cannot meaningfully guarantee a N2,000,000 annual lease. The math doesn't work. Yet landlords accept this arrangement every day because the form was signed.

Red Flags That Signal a Risky Guarantor

Financial Capacity Mismatch

Your guarantor should have stronger financial standing than your tenant. This is non-negotiable.

Watch for these warning signs:

The guarantor's stated income is lower than or equal to the tenant's income. They claim a junior position at their workplace while the tenant holds a senior role. Their residential address suggests they rent property at a lower value than what you're offering.

If a tenant earning N500,000 monthly brings a guarantor earning N200,000, you have a problem. Who will actually pay when things go wrong?

Reluctance to Provide Verifiable Information

A legitimate guarantor understands the process requires verification. They expect you to confirm their employment. They accept that you might check their creditworthiness.

Red flags emerge when a guarantor:

Refuses to provide their employer's HR contact for verification. Offers only a personal phone number with no workplace confirmation. Hesitates to provide a valid government ID when asked. They become defensive when asked basic questions about their financial situation.

Someone hiding information usually has something worth hiding.

Vague Employment Details

Ask a straightforward question: Where do you work?

A risky guarantor gives unclear answers. They mention a company name you can't find online. They describe their role in ways that don't quite make sense. Their stated salary doesn't match typical compensation for that position.

Legitimate professionals provide specific details without hesitation. They name their department. They give you a direct HR line. They know their employment details because they live them daily.

The Professional Guarantor Pattern

Some individuals guarantee multiple tenants across different properties. They make a side business of signing forms.

These professional guarantors spread their risk thin. When three tenants default simultaneously, they cannot cover any of them adequately.

Ask directly: How many other tenants have you guaranteed? Genuine guarantors typically have one or two at most, usually family members or close colleagues.

No Traceable Financial Footprint

A guarantor with no bank account, no credit history, and no formal employment offers you nothing to collect from if things go wrong.

Nigeria's credit infrastructure has expanded rapidly. CRC Credit Bureau now holds over 33 million credit files. FirstCentral and Credit Registry continue adding millions of records annually. The Central Bank's push for financial inclusion means more Nigerians carry formal credit histories than ever before.

This growth works in your favor. Credit checks that returned empty five years ago now produce meaningful data. Bank statement analysis through Open Banking captures financial behavior for anyone with a bank account. Digital verification tools can cross-reference identity, income, and credit data in ways that were impossible a decade ago.

Five Ways to Verify Guarantors Properly

1. Apply the Same Scrutiny as Your Tenant

Your guarantor is essentially a secondary tenant in financial terms. Treat them accordingly.

Verify their identity through government-issued ID. Confirm their stated employment directly with their employer's HR department. Check their income to ensure they can actually cover the lease if needed.

A guarantor who meets these standards provides genuine protection. One who doesn't is performance art.

2. Verify Income Capacity Against Lease Value

The math must work.

A solid guarantor should have monthly income at least equal to 2-3 months of the annual rent they're guaranteeing. For a N2,400,000 annual lease (N200,000 monthly), the guarantor's monthly income should reach N400,000-N600,000 minimum.

Lower than this creates collection problems even if the guarantor intends to honor their commitment.

3. Formalize the Agreement with Clear Terms

A guarantee agreement should specify:

The exact property address and lease terms. The total amount the guarantor commits to covering. The conditions under which you can collect from them. Their acknowledgment that you verified their information.

Keep this document alongside your lease. A verbal promise holds no legal weight in Nigerian courts.

4. Confirm Employment and Income Directly

Never accept employment claims at face value.

Call the employer's main line (not a number the guarantor provides). Ask HR to confirm employment status and tenure. Request salary confirmation in writing when possible.

For self-employed guarantors, request CAC registration documents, six months of business account statements, and tax payment records.

5. Check Their Credit History

Nigeria's credit reporting ecosystem has matured significantly. Use it.

A credit report reveals patterns you cannot see otherwise.

Has this guarantor defaulted on loans before? Do they have outstanding debts that would limit their ability to help you? How do they handle their own financial obligations?

CRC Credit Bureau, FirstCentral, and Credit Registry all provide consumer credit reports. With over 33 million credit files now on record and growing, chances are good your guarantor has a traceable credit history. A guarantor with multiple defaults is unlikely to pay your tenant's debt when they can't handle their own.

The Next of Kin Confusion

Many landlords confuse next of kin with guarantors. These serve completely different purposes.

A next of kin is an emergency contact. They help you locate someone in case of medical emergency or death. They have no financial obligation to you.

A guarantor accepts financial responsibility for another person's debt. They contractually agree to pay when the primary party defaults.

Collecting a next of kin form does not give you a guarantor. These are separate relationships requiring separate documentation.

What Modern Landlords Do Differently

Manual guarantor verification takes days of phone calls, awkward conversations, and incomplete information. You're essentially detective work without proper tools.

Digital verification changes this equation.

With Tenalet, guarantors complete verification through a simple link. They confirm their identity with NIN or BVN validation. They authorize income verification through bank statement analysis. You receive a comprehensive report showing their actual financial capacity.

No more chasing HR departments. No more accepting claims you cannot verify. No more wondering if that signature means anything.

The guarantor either passes verification or they don't. You make decisions based on data instead of hope.

Protecting Your Investment Starts with Real Verification

A property represents significant capital. Annual rent in Lagos and Abuja routinely exceeds N2,000,000 for decent apartments. You deserve protection that actually protects.

Screen your guarantors with the same rigor you apply to tenants. Verify their identity. Confirm their income. Check their credit where available. Document the relationship formally.

Your future self will thank you when that tenant stops paying and your guarantor actually has the means to step in.

Because the best time to discover your guarantor can't pay is before you sign the lease, not after your tenant disappears.

Ready to verify your guarantors properly? Create your free Tenalet account and send verification requests in minutes. Screen your next tenant today