The Complete Guide to Rent Guarantors in the UK: Requirements, Responsibilities & Best Practices

When a tenant’s application looks promising but their income or credit history falls short, a rent guarantor can bridge the gap between a vacant property and a signed lease. Yet for many UK landlords and property managers, guarantor requirements remain a grey area—one that creates unnecessary risk when not handled properly.

Whether you manage private rentals, student accommodation, or a mixed portfolio, understanding when to require a guarantor, what to verify, and how to document everything properly can protect your rental income while helping good tenants secure housing.

What Is a Rent Guarantor?

A rent guarantor is a third party who agrees to take financial responsibility for a tenant’s rental obligations if they fail to pay. This includes covering unpaid rent, damages beyond normal wear and tear, and sometimes legal costs associated with the tenancy.

The guarantor signs a legally binding agreement alongside (or in addition to) the main tenancy agreement. They don’t live in the property—they simply provide financial backing that gives landlords confidence to approve tenants who might otherwise fail affordability checks.

Guarantors are most commonly parents, family members, or close friends with stable finances. However, professional guarantor services have become increasingly popular, particularly for international students and young professionals without established UK networks.

Guarantor vs. Co-signer: Understanding the Difference

These terms are sometimes used interchangeably, but they carry different legal implications that matter when drafting agreements.

A guarantor acts as a financial safety net. They’re only called upon to pay if the tenant defaults. They have no right to live in the property and their liability typically activates only after the tenant fails to meet their obligations.

A co-signer shares equal responsibility for the lease from day one. They may have the right to occupy the property and are jointly liable for all rental payments throughout the tenancy—not just when the primary tenant fails to pay.

For UK landlords, the distinction matters. A guarantor provides backup coverage; a co-signer provides shared primary responsibility. Most residential tenancies call for a guarantor rather than a co-signer, as the latter implies a more complex arrangement with potential occupancy rights.

When Should Landlords Require a Guarantor?

Not every tenancy requires a guarantor. The decision typically comes down to risk assessment during tenant referencing. Common scenarios where a guarantor provides valuable security include applications from tenants with limited credit history, low income relative to rent, irregular or self-employed income, no previous rental history, or recent financial difficulties such as past CCJs or bankruptcies.

Private Rentals

In the private rental sector, guarantor requirements have become increasingly common. Economic pressures and legislative changes through the Renters’ Rights Bill mean landlords are seeking additional security measures where possible.

Most landlords require guarantors when tenants don’t meet standard affordability criteria—typically earning at least 2.5 to 3 times the annual rent. First-time renters, recent graduates entering the workforce, and self-employed professionals with variable income frequently need guarantor support.

The guarantor requirement also applies to tenants relocating from abroad who lack a UK credit history. Even financially stable individuals may struggle to pass referencing checks without an established presence in the UK’s financial system.

With Section 21 “no-fault” evictions set to be abolished under the Renters’ Rights Bill (expected to come into force on 1 May 2026), landlords will increasingly rely on Section 8 grounds such as rent arrears. A solid guarantor provides an extra line of defence before arrears hit the two-month threshold required for possession proceedings.

Student Accommodation

Students represent perhaps the most common scenario requiring guarantors. The combination of limited income (typically student loans and part-time work), no rental history, and minimal credit footprint makes them higher-risk tenants from a landlord’s perspective.

Purpose-built student accommodation (PBSA) providers have varying guarantor policies. Many require UK-based guarantors for students paying rent in instalments, while those paying the full year’s rent upfront may not need one at all. University-managed accommodation often operates differently—the institution may act as an implicit guarantor or waive the requirement entirely.

Private student housing almost universally requires guarantors. Joint tenancies in shared houses present an additional complexity: landlords typically require each tenant to have a guarantor, and these agreements often include “joint and several liability” clauses. This means each guarantor could potentially be responsible for the entire rent if housemates default, not just their individual share.

International students face particular challenges. Most UK landlords require guarantors to be UK residents, which creates an immediate barrier for students whose families live abroad. Professional guarantor services have emerged specifically to address this gap, acting as guarantors for a fee. Universities also increasingly offer their own guarantor schemes to support international students—it’s worth directing students to their accommodation office or student services department.

UK Guarantor Requirements

While specific requirements vary by landlord and letting agent, certain standards apply broadly across the UK market.

Residency

Guarantors must be UK residents. This requirement exists because pursuing a guarantor through the courts becomes significantly more complex—and potentially unenforceable—if they live abroad. Most landlords require a UK address, and some may specifically require residency in England and Wales where their legal processes apply.

Age

Guarantors should generally be between 21 and 75 years old. Some landlords accept guarantors aged 18 and over, while others set stricter upper age limits. Retired guarantors can be acceptable provided they can demonstrate sufficient income or assets.

Income

Most landlords require a guarantor’s annual income to be at least 30 to 40 times the monthly rent. For a property at £1,500 per month, that translates to an annual income of £45,000 to £60,000. This higher threshold (compared to tenant requirements) reflects the guarantor’s role as a financial backstop.

Income can come from employment, pensions, or other regular sources. Self-employed guarantors may need to provide accountant-certified income statements or additional years of tax returns.

Credit History

A clean credit report is essential. Landlords typically run the same referencing checks on guarantors as they do on tenants, looking for CCJs, IVAs, bankruptcies, defaults, or significant arrears. Recent financial difficulties will likely disqualify a potential guarantor.

Property Ownership

While not always mandatory, some landlords prefer guarantors who own property. This provides an additional asset that could potentially be pursued in the event of legal action, though in practice this is rarely necessary.

Digital Verification

Since 2024, most large letting agents and referencing companies have switched to fully-digital ID verification using government-approved Digital Right-to-Rent checks. If you ask a tenant for a guarantor, the guarantor’s identity and UK address now need to be confirmed the same way. The traditional approach of a passport scan plus utility bill is no longer sufficient for compliance with many referencing providers.

The Renters’ Rights Bill: Changes to Guarantor Liability

The Renters’ Rights Bill currently progressing through Parliament includes significant provisions affecting guarantors that landlords should be aware of.

Liability cap: The Bill introduces a provision limiting individual guarantors’ financial liability to a maximum of six months’ rent. This represents a substantial change from current practice, where guarantor agreements can create unlimited ongoing liability.

Death of tenant: The Bill includes an amendment preventing individual guarantors (often family members) from being held liable for rent payments after the tenant’s death. This measure aims to protect bereaved guarantors from financial hardship during a time of grief.

Periodic tenancies: Under the Bill, all tenancies will be continuing periodic tenancies from day one, with no fixed terms. Future guarantor agreements will need to be drafted to account for this continuing liability structure.

These changes, expected to come into force on 1 May 2026, will significantly impact how guarantor agreements are structured. Landlords should review their standard guarantor documentation with a solicitor before the legislation takes effect.

What Landlords Should Verify

Thorough guarantor verification protects your investment and ensures the guarantee will actually hold if you need to rely on it.

Identity verification: Government-issued photo ID (passport or driving licence) confirmed through digital verification services. This should meet the same standard as tenant Right-to-Rent checks.

Proof of address: Recent utility bills, council tax statements, or bank statements showing the guarantor’s current UK address. Documents should typically be dated within the last three months.

Income verification: Recent payslips (at least two to three months), P60, or tax returns. Retired guarantors should provide pension statements. Self-employed guarantors need accountant-certified income statements or SA302 tax calculations.

Credit check: Run a full credit report through a reputable referencing service. Look for CCJs, IVAs, bankruptcies, and payment defaults. Remember that under the Tenant Fees Act 2019, you cannot charge tenants or guarantors for these checks.

Affordability calculation: Confirm the guarantor’s income meets your threshold relative to the rent amount—typically 30 to 40 times monthly rent annually.

All verification should be completed before the tenancy agreement is signed. Store copies of all guarantor documentation securely alongside your tenant files for compliance purposes.

Alternatives When Tenants Can’t Find a Guarantor

Not every tenant can provide a traditional guarantor. Family members may live abroad, lack sufficient income, or simply be unwilling to take on the liability. Several alternatives exist.

Professional Guarantor Services

Companies like Housing Hand, UK Guarantor, YourGuarantor, and Homeppl Guarantid act as guarantors for a fee. These services typically charge between one week’s and one month’s rent for a full year’s coverage, though pricing varies based on tenant circumstances and rent level.

Professional guarantor services work well for international students, young professionals without UK connections, and tenants whose family members don’t meet income requirements. They conduct their own referencing process and require the tenant to meet certain criteria before providing the guarantee.

Before accepting an application relying on a professional guarantor service, confirm you’re willing to work with that specific provider. Not all landlords accept all services.

Upfront Rent Payment

Some landlords waive the guarantor requirement if tenants pay several months’ rent in advance—typically three, six, or twelve months. This reduces landlord risk by securing income upfront.

However, this approach has important limitations under the Tenant Fees Act 2019. Landlords cannot require prepaid rent exceeding one month alongside a deposit greater than five weeks’ rent (or six weeks for annual rent over £50,000). Tenants can offer to pay more upfront voluntarily, but landlords cannot mandate it as a condition of the tenancy.

From a tenant protection perspective, paying substantial rent in advance carries risks. If problems arise with the landlord or property, recovering prepaid rent becomes complicated.

University Guarantor Schemes

Many UK universities operate their own guarantor schemes for students who can’t provide a private guarantor. The university essentially acts as guarantor, backing the student’s tenancy in exchange for meeting certain criteria.

Eligibility typically requires the student to be in good academic standing, not be in debt to the university, have sufficient income to cover the rent (usually from student finance), and provide a satisfactory reference from any previous accommodation.

Students should contact their university’s accommodation office or student services department to learn about available schemes. Some universities specifically extend these services to postgraduate and international students.

Rent Guarantee Insurance

Landlords can consider rent guarantee insurance as an alternative to requiring a guarantor. This insurance pays out if tenants fall into arrears, typically covering several months of rent and sometimes legal costs for possession proceedings.

Rent guarantee insurance doesn’t eliminate the need for proper tenant referencing—most policies require tenants to pass affordability checks. But it can provide similar protection to a guarantor without placing that burden on the tenant to find someone willing and able to act.

Managing Guarantor Information Effectively

Having a guarantor is only valuable if you can actually contact them when needed and your agreement is legally sound. Poor documentation undermines the entire purpose of the guarantee.

Essential Documentation

Every guarantor arrangement should include a written guarantor agreement (often called a deed of guarantee) that clearly states the guarantor’s obligations, liability limits, the duration of the guarantee, and the circumstances under which they’ll be contacted.

The agreement should specify whether the guarantor is liable for the tenant’s share only (in joint tenancies) or for the full rent under joint and several liability. It should also clarify whether the guarantee continues after any fixed term ends as tenancies become periodic—though note this will change under the Renters’ Rights Bill.

Keep copies of the guarantor’s ID verification, proof of address, income evidence, and credit check results alongside the agreement.

Centralised Record Management

Scattered paperwork creates problems when you actually need to enforce a guarantee. Guarantor contact details, agreements, and verification documents should be linked directly to the relevant tenancy record.

Modern property management platforms like Apartemo allow landlords and agents to store guarantor information as part of the tenancy record itself. Within Apartemo, you can add a guarantor directly to any tenancy, storing their contact details, relationship to the tenant, and relevant documentation in one accessible location. This means when arrears arise, you’re not searching through filing cabinets or email folders—the information is immediately available alongside the tenant’s details.

Centralised management also helps with compliance. If you need to demonstrate that proper guarantor verification was completed, having everything linked to the tenancy record provides a clear audit trail.

Communication Protocols

Establish clear internal procedures for when and how guarantors are contacted. Typically, guarantors should be notified when rent arrears reach a certain threshold—often after the tenant has been contacted and failed to respond or arrange payment.

Document all communication with guarantors just as you would with tenants. This creates a record that may prove valuable if legal action becomes necessary. Keep copies of letters sent and notes of phone conversations.

The Guarantor Agreement: Key Clauses

A robust guarantor agreement should address several critical elements beyond simply stating that the guarantor will pay if the tenant doesn’t.

Scope of liability: Clearly define what the guarantor is responsible for—rent only, or also damages, legal costs, and fees? Are they liable for all tenants in a joint tenancy (joint and several liability), or just the named tenant?

Duration: State when the guarantee begins and ends. Open-ended agreements can create liability that extends indefinitely into periodic tenancies; fixed-term agreements may leave gaps in coverage. With changes coming under the Renters’ Rights Bill, review how your agreements handle ongoing periodic tenancies.

Notice requirements: Specify how guarantors will be notified of arrears, changes to the tenancy, or other relevant matters.

Variation clause: Address whether changes to the tenancy (rent increases, new tenants, extensions) require the guarantor’s renewed consent or continue under the existing agreement.

Termination conditions: Define circumstances under which the guarantee can be terminated and what process applies.

Consider having guarantor agreements reviewed by a solicitor, particularly for high-value tenancies or complex arrangements. Template agreements should be updated to reflect incoming legislative changes.

Conclusion

Rent guarantors provide valuable security for UK landlords while enabling tenants who might otherwise struggle to access housing. Whether you’re managing private rentals or student accommodation, understanding guarantor requirements, verification processes, and alternatives ensures you can make informed decisions for each tenancy.

The key is consistency and documentation. Apply guarantor requirements fairly based on clear criteria, verify thoroughly before signing agreements, and maintain organised records that allow you to act quickly if problems arise.

With significant changes coming through the Renters’ Rights Bill—including caps on guarantor liability and new rules around periodic tenancies—now is an ideal time to review your guarantor processes and documentation.

Ready to streamline your guarantor management? Apartemo makes it easy to add guarantors to tenancy records, store verification documents, and keep all tenant information in one accessible platform. Explore how Apartemo can help manage your rental portfolio more effectively.

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This guide provides general information about rent guarantors in England and Wales. Scottish and Northern Irish tenancy law differs in some respects. For specific legal advice regarding guarantor agreements, consult a qualified solicitor.