Guarantor for Renting — What Does It Mean and What Are the Risks?

What Is a Guarantor?

A guarantor is a person — usually a parent, close relative, or trusted friend — who signs a legal agreement promising to pay your rent and meet any financial obligations under your tenancy agreement if you fail to do so. Landlords require guarantors when they consider a tenant to be higher risk: students with no income, people with poor or no credit history, those on benefits, or anyone without a UK rental history.

Understanding what a guarantor is agreeing to is critical. Many people sign guarantor agreements without fully appreciating the extent of their liability.

What a Guarantor Is Agreeing To

A typical guarantor agreement binds the guarantor to:

• Pay any rent the tenant fails to pay
• Meet any other financial obligation under the tenancy (utilities if included, damages beyond the deposit)
• Continue to be liable even if the tenancy is renewed or the rent increases, unless the agreement says otherwise

In a joint tenancy with multiple tenants, the guarantor's liability is often **joint and several** — meaning the guarantor can be held liable for the rent of all tenants in the property, not just the person they are guaranteeing. If three tenants share a property and two stop paying, the guarantor of the third tenant can potentially be sued for all three shares of the rent.

This is not hypothetical — landlords do pursue guarantors through the courts and often succeed.

When Do Landlords Require Guarantors?

Landlords and letting agents most commonly require guarantors for:

**Students** — Almost universally required. Students typically have no income and no rental history. Most private student landlords will not proceed without a guarantor.

**Young professionals in first rental** — If you have no previous rental history and are on a starting salary, some landlords will want the additional security of a guarantor.

**Low income or benefits** — Some landlords require guarantors for tenants on Universal Credit or other benefits, though blanket refusal to rent to benefit claimants can constitute discrimination.

**International tenants** — Overseas tenants without a UK financial history routinely face guarantor requirements or demands for advance rent.

Income Requirements for Guarantors

Landlords typically expect a guarantor to earn at least **25 to 30 times the monthly rent in annual income**. For a property renting at £1,200 per month, that means a guarantor income of at least £30,000–£36,000 per year. Some landlords require employment in the UK, though others will accept guarantors employed overseas.

Guarantors who are retired or on fixed incomes need to demonstrate equivalent assets or pension income.

Should a Guarantor Take Independent Legal Advice?

Yes — particularly for a large or long-running commitment. A guarantor should understand:

• Exactly what they are liable for (rent only, or all obligations?)
• Whether liability is joint and several with other tenants' guarantors
• Whether the liability ends when the tenancy ends or continues for any arrears
• Whether the landlord must pursue the tenant first before chasing the guarantor (most agreements say not — guarantors can be pursued directly)

Some solicitors offer a short fixed-fee advice session for guarantors. It is money well spent before signing a guarantee on a high-rent property.

What Happens If the Guarantor Needs to Be Released?

A guarantor cannot simply withdraw from the agreement once signed. Release requires either:

• The tenancy ending (the guarantee typically expires when the tenancy ends)
• The landlord agreeing in writing to release the guarantor and accepting a new guarantor instead
• A court order in exceptional circumstances

This means guarantors are locked in for as long as the tenancy continues. For a student, that might be one year. For an open-ended periodic tenancy with no fixed end date, a guarantor could remain liable indefinitely if the tenant stays for years.

Professional Guarantor Services

If you cannot provide a personal guarantor, professional guarantor services offer an alternative. In exchange for a fee (typically equivalent to one to eight weeks' rent paid as a one-off), companies such as Rent Guarantor and Housing Hand will act as your guarantor. Some landlords and agents will accept these services; others insist on a personal guarantor.

It is worth checking with your prospective landlord before paying a fee to a professional guarantor service, to ensure they will accept it.

Keeping Guarantor Documents

Both the tenant and guarantor should retain a signed copy of the guarantor agreement alongside the tenancy agreement. Store both in Property Passport UK so the full record is accessible if a dispute arises.