In a rental market where “affordability” is fast becoming a relative term and tenant referencing grows ever more cautious, rent guarantors have gone from optional extra to strategic essential.
But despite their growing relevance, a surprising number of landlords still avoid them. Not because they aren’t useful but because too many myths from a different rental era still linger.
So, let’s put some of the most persistent misconceptions under the microscope and separate fact from fiction.
1. “Guarantors are only for students and high-risk tenants”
Once true. No longer.
The cost-of-living crisis, rising rents, and increasingly rigid affordability checks mean many reliable, working tenants now fall short of letting agent benchmarks. They might be self-employed, new to the UK, or simply don’t have a spotless credit file.
A guarantor doesn’t mean the tenant’s risky it often just means they’re navigating a system that hasn’t kept pace with economic reality. For landlords, it’s less about red flags, more about risk-managed flexibility.
2. “It’ll delay the tenancy process”
A fair concern if you’re thinking in 2005 terms.
But the rise of professional guarantor services has changed the game. Application processes are now fully digital, with eligibility decisions turned around in hours, not weeks.
In fact, a prepared tenant with a ready to go guarantor can often move in faster than one stuck in referencing limbo.
3. “Guarantors add more admin and legal complexity”
Only if you let them.
When landlords arrange informal guarantor agreements say, with a tenant’s relative the burden often lands on them to draft paperwork, verify identities, and chase signatures. But when the guarantor is arranged by the tenant through a third party provider, much of the admin disappears.
If anything, it reduces your paperwork: a signed agreement, one point of contact, and a backup plan if things go wrong.
4. “If rent isn’t paid, I’ll still be chasing people around”
That depends on the guarantor you accept.
Informal agreements are only as strong as your willingness (and budget) to enforce them. But professional providers offer clear contractual guarantees with structured resolution processes.
Still, not all providers are created equal. Which brings us to…
5 questions every landlord should ask a professional guarantor provider
Before you rely on any third-party guarantor, here’s what you need to be asking and why it matters:
🔹 What exactly is covered and what’s excluded?
Is it just unpaid rent, or also damage or early termination? Is there a cap on the payout? Clarity here avoids future grey areas.
🔹 How quickly do you pay out if the tenant defaults?
Some providers have fast-track mechanisms. Others bury their obligations in small print. Ask upfront what the process is and whether it requires legal action first.
🔹 Are your agreements legally enforceable, and who drafted them?
Sound obvious, but worth checking. A robust agreement drafted by a specialist housing solicitor will always beat a generic download.
🔹 Can you support joint tenancies or HMO setups?
If you rent to sharers or manage a portfolio with varied tenancy types, this matters. Some providers only cover single ASTs.
🔹 What happens if I need support mid-tenancy?
Will you be left navigating arrears alone, or is there an escalation and mediation process? The difference is night and day.
5. “Tenants don’t want to deal with guarantors”
In today’s climate, many do especially if the alternative is rejection.
For tenants without a UK based friend or family member, a professional guarantor is not a hurdle it’s a solution. And one that’s increasingly common among tenants who are financially stable but technically “unqualified” in rigid affordability models
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