Guarantor: Do Landlords need it while renting?

Guarantor: Do Landlords need it while renting?

Guarantor: Are you renting your home to students?

Maybe you do not have standard rentals.

If that is the case, you should consider requesting a backer.

As a homeowner, there are certain things you must know before doing this.

Therefore, take your time to check out top tips for landlords.

Our tips for house owners will help you when getting a backer.

Who is a guarantor?

What does a backer do?

Typically, a backer helps tenants who do not satisfy the criteria of a tenancy agreement.

The backer will help to pay their rents.

When signing up a guarantor, you must consider certain requirements.


These requirements are:

  • The backer must live in the UK
  • The person must have a home or other assets
  • The backer must have an income that fits the affordability requirements
  • The individual must be family member or friend of the renter

Steps to take when signing up a guarantor

When signing up a backer, you should do the following:

  • Make sure your prospective renter understands what having a backer entails. Basically, the backer must have all the information about the rent. Also, let the tenant know what will be recorded in the Landlord’s Fair Processing Notice.
  • Forward a Landlord’s Fair Processing Notice to the prospective backer. This is to ensure compliance with GDPR regulations in May 2018.
  • Contact the guarantor about the prospective tenant. Also, before signing of the agreement, send its draft copy to the guarantor.
  • Give a ‘letter for guarantee’ to the guarantor. Also, send a covering letter. The backer should sign the letter.

Also, carry out a detailed affordability assessment on the backer.

There is a requirement for buying a rent-guarantee product.

If you have any problems, get in touch with us at Reneza for assistance.

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The guarantor letter should have some sets of information.

This includes the names of the renter and landlord and address of the homes.

A legal deed is necessary for the backer letter.

So, the guarantor and a witness should sign it and add dates.

What is the guarantor liable for?

Similarly, the things the backer is liable for should be in the letter.

The liability should include damages, rent arrears and so on.

The letter should also have details of the liability of the guarantor.

This could be joint, individual rental or other kinds of liability.

If the rental is in Wales or England, there is a peculiar rule.

A fixed-term tenancy can turn to a periodic agreement after it ends.

However, the change does not alter the liability of the guarantor.


Add a cover legal letter that shows that guarantor has a right to find legal assistance.

Advise the guarantor to understand everything before signing the letter.

There is no need to add details of the guarantor in the tenancy agreement.

This is because the tenancy does not include the backer.

This sequence is good:

  • Give details of the prospective renter
  • Give details of the prospective guarantor
  • The agreement that the guarantor has signed. Notably, it is a must for the guarantor to see the tenancy before the tenant signs it
  • The tenancy agreement that both renter and homeowner have signed

Role of a guarantor in a joint tenancy

In a joint tenancy, it is possible for one of the people to have a guarantor.

In that case, the guarantor is equally liable for all the renters in the apartment.

Joint tenants

This is because the tenancy agreement is jointly and severally liable.

There may be a money claim in Wales and England in a rental with five or more renters.

If the tenants and guarantor are liable, the first four tenants may be liable.

Resultantly, they should consider the order of listing of the tenants.

It is vital to make sure that tenants with backers are among the first four on the list.

Limited liability

Property owners should have no limitations on guarantees.

However, it is possible for the guarantor to ask for limitations on backers.

If so, the homeowner should look at the options.

The backer and house owner should come to an agreement before signing.

The agreement may include paying off a specific percent of rent owed.

It may just be about payment of rent owed by a specified renter if it is joint tenancy.

Whatever the case, choose what provide advantages for landlords.

You may have more than one renter on various tenancy agreements.

In that case, ensure that every renter has a different backer.

Many individuals would avoid being a backer for someone who is not related to them.

Is it possible for guarantors to offer notice?

As long as the fixed term is still valid, it is not possible.

In other words, the backer is not allowed to offer notice.

However, if the fixed-term tenancy changed to periodic, it is possible.

In that case, the backer can give a one-month notice.

Notably, the tenant still has a right to continue staying in the rental.

Material changes in the tenancy agreement are what affect this condition.

Violations of contract

If the renter owes rent, the homeowner should contact the backer.

This is done by sending a rental demand letter to the individual.

This is also applicable to violations of tenancy agreements.

Also, the landlord should send details of rent arrears or violations of agreements.

The backer must have the details before taking any actions.

It is possible for the renter to run away or avoid paying the rent.

In such a case, the backer is liable to pay the rent.

So, before signing up a backer, get expert advice.

At Reneza, we will help you. Just get in touch with our professionals today.

We will offer you a wide range of real estate solutions.

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