Guarantor Agreements for Tenancies

# Guarantor Agreements for Tenancies

A guarantor is the safety net behind a tenant who would not otherwise pass referencing — a student, a young professional with no rental history, someone moving from abroad, or a tenant whose income is below your usual affordability multiple. A properly drafted guarantor agreement is the difference between recovering arrears and writing them off.

What a guarantor agrees to

A guarantor contractually agrees that if the tenant fails to meet their obligations — paying rent, paying for damage, paying any agreed costs — the guarantor will pay instead. The scope of cover depends entirely on the wording.

Why landlords use guarantors

• Income below the standard 30× monthly rent affordability test.
• No UK rental history.
• Adverse credit.
• Standard practice in student lets.

Legal essentials

1. In writing (Statute of Frauds 1677 — guarantees must be evidenced in writing and signed).
2. Signed by the guarantor before the tenancy begins.
3. Executed as a deed for the strongest position — extends the limitation period to 12 years and removes any argument about consideration. Requires witnessed signature and the document to state it is intended as a deed.
4. Guarantor receives a copy of both the guarantee and the tenancy agreement.

Drafting points that matter

Scope of liability

Cover rent, utilities, council tax (if tenant''s liability), damage, court costs, reasonable legal fees, and any sums due during periodic continuation or renewal.

Joint and several liability (joint tenancies)

The most common failure. The guarantor must be liable for the whole rent, not their tenant''s share.

Duration

State that the guarantee continues through the fixed term, any statutory periodic, and any renewal at the same or lower rent. Re-sign if rent increases.

Notice and demand

The landlord can demand from the guarantor without first suing the tenant.

Executing as a deed

1. Mark the document as a deed in title and execution block.
2. Guarantor signs in front of an independent witness.
3. Witness signs, prints name, address, occupation.
4. Landlord countersigns. Keep the original.

Referencing the guarantor

• Income — typically 36× monthly rent in gross annual income.
• UK residency — overseas guarantors are very hard to enforce against.
• Credit check — no recent CCJs, IVAs, bankruptcies.
• Homeowner status preferred.

Common traps

• Verbal guarantees — unenforceable.
• Guarantor signs after tenancy starts without deed format.
• Renewing at higher rent without re-signing.
• Share-only wording on joint tenancies.
• Overseas guarantor with no UK assets.
• Losing the original signed document.

Paid guarantor services

For overseas tenants or where no UK guarantor is available, a paid service (Housing Hand, Rentguard) underwrites the risk for a fee paid by the tenant.

Bottom line

A guarantor agreement is only as good as its drafting and execution. Use deed format, get the joint-and-several wording right, reference the guarantor properly, keep the original safe.