How do rent guarantors work after the Renters' Rights Act?
A guarantor is a person who agrees to pay the tenant's rent and other liabilities if the tenant does not. Guarantees must be in writing and signed, and should be worded to cover a periodic tenancy, rent increases and any change of landlord. With rent in advance now limited, guarantors are the main support for tenants without a strong credit history.
Read more in our guide: Selling a portfolio with tenants
Guarantee essentials
| Point | What to check |
|---|---|
| Form | In writing, signed by the guarantor; often a deed |
| Scope | Rent, damage, other tenancy obligations |
| Duration | Should cover the periodic tenancy, not only a fixed period |
| Rent increases | Should say they are covered |
| Joint tenancies | Clarify whether liability is for one tenant or all |
| Change of landlord | Should pass to a buyer of the property |
Why guarantors matter more now
The Renters' Rights Act 2025 stopped landlords taking more than one month's rent in advance and banned fixed terms. Students, younger tenants and people new to the UK used to pay months upfront; a guarantor now does that job. Landlords must apply guarantor requirements fairly, in line with the anti-discrimination rules.
Getting the wording right
Courts read guarantees strictly in favour of the guarantor. A guarantee written for a 12-month fixed term may not cover a tenancy that runs on, or an increased rent. Since every tenancy is now an assured periodic tenancy, guarantees should be redrafted to cover the tenancy for as long as it continues, with a clear way for the guarantor to end future liability if that is offered.
Checking a guarantor
- Identity, address and affordability, often an income several times the annual rent.
- UK residence, since overseas guarantors are hard to enforce against.
- Independent understanding: give the guarantor a copy of the tenancy and suggest advice.
- No fee can be charged to the tenant or guarantor for referencing.
Guarantees on a sale
When you sell, the benefit of the guarantee should pass to the buyer with the tenancy. Most modern guarantees allow this; older ones may need assigning in the sale documents. Include signed guarantees in the tenancy files handed over at completion.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A guarantor is a person who agrees to pay the tenant's rent and other liabilities if the tenant does not. Guarantees must be in writing and signed, and should be worded to cover a periodic tenancy, rent increases and any change of landlord. With rent in advance now limited, guarantors are the main support for tenants without a strong credit history.
Only if the guarantee allows it. Many allow the guarantor to give notice ending liability for future periods.
Not necessarily, but insurers often require the tenant or a guarantor to pass referencing.
Yes, but make clear whether they guarantee only their child's share or the whole rent.
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