A guarantor is a third party, usually a parent or close family member, who agrees to be liable for the tenant's rent and any damage if the tenant defaults. A well-drafted guarantor agreement (deed of guarantee) is a valuable safety net, particularly for student tenants, those on lower incomes, or tenants who would not otherwise pass standard referencing. Without a deed of guarantee, any informal guarantor arrangement is unenforceable.
When to require a guarantor
- Tenant fails affordability referencing (earnings below 2.5× annual rent)
- Tenant has limited or poor credit history
- Student or first-time tenant with no rental track record
- Tenant is on benefits where income is variable
- High-value property or high-risk market where arrears exposure is significant
The deed of guarantee, what it must include
A guarantor agreement must be a deed, signed, witnessed, and delivered, to be enforceable under English law. Key terms to include:
- Identity of the guarantor: full name, address, and relationship to the tenant
- Scope of liability: does it cover rent only, or also damage and other obligations under the tenancy?
- Duration: does the guarantee cover the initial term only, or does it continue for subsequent renewals? Under a Periodic Assured Tenancy (from May 2026), the guarantee should expressly cover the continuing periodic tenancy
- Joint and several liability with the tenant: the landlord can pursue the guarantor without first exhausting remedies against the tenant
- Notice requirements: must the landlord notify the guarantor of arrears before claiming against them?
How to enforce a guarantor agreement
- Notify the guarantor in writing as soon as arrears arise, do not wait until arrears are severe
- Send a formal demand letter citing the guarantee agreement and the amount owed
- If the guarantor fails to pay, issue a money claim in the county court (MCOL for debts under £10,000)
- The guarantor can be pursued at the same time as, or instead of, the tenant, the guarantee is a separate contractual obligation
- Keep the guarantor informed of any changes to the tenancy, failure to notify of material changes may discharge the guarantee
Common pitfalls
- Unsigned or unwitnessed deed: a guarantee not executed as a deed is unenforceable
- No consideration review on renewal: guarantees for fixed terms may not automatically extend to new fixed terms, include express wording covering renewals and periodic tenancies
- Guarantor not independently advised: a guarantor who later claims they did not understand the commitment may challenge the guarantee, encourage the guarantor to take independent legal advice
- Changing the tenancy without telling the guarantor: significant changes to the tenancy (rent increase, change of tenant) can discharge the guarantee if the guarantor is not notified and does not consent