When letting a property, ensuring reliable rent payments is a top priority for landlords. Enter the guarantor—a third party who can provide an extra layer of financial security, especially when tenants don’t meet typical affordability criteria.

Why Use a Guarantor?
A guarantor, often a parent, relative, or close friend, agrees to cover rent or damages if the tenant is unable to. This arrangement is particularly beneficial when renting to students, first-time renters, or those with irregular income. Guarantors add financial security, reduce the risk of arrears, and open your property to a broader range of applicants.

What to Look for in a Guarantor
Choose a guarantor with a strong financial position, typically a homeowner with a stable income. Reference them thoroughly, just as you would a tenant. If you’re using a tenancy agreement, include a separate guarantor deed that outlines their responsibilities in full.

Legal Considerations
A guarantor agreement must be signed as a deed, and all parties should understand their commitments. Some landlords limit the guarantor’s responsibility to rent only, while others extend it to cover damages and legal costs. Ensure the agreement is clearly written and legally sound.

Ongoing Protection
In cases of missed rent or breach of agreement, landlords can legally pursue the guarantor for payment, making it a valuable safety net.

When used correctly, a guarantor can offer landlords added confidence while helping responsible tenants secure a home. If you’re considering letting your property, we at Sawyer & Co can guide you through the process, ensuring your rental income is safeguarded with the right measures in place.