Uncertainty can often feel like the only certainty as a landlord, especially in the wake of the Renters’ Rights Act, the biggest shake-up of the UK lettings market in decades. Whether investing for the long term or supplementing month-to-month income, a reliable and consistent rental stream is fundamental to financial planning and the success of a property business.
A professional rent guarantor acts as a dependable backstop for renters who cannot provide a suitable UK guarantor and is a valuable tool for landlords navigating new regulatory requirements. It helps reduce the risk of income disruption and allows landlords to focus on running their portfolio without unnecessary interruption.
A professional rent guarantor service can unlock tenancies for both renters and landlords. By providing a strong alternative to rent in advance, it enables landlords to widen their pool of potential tenants to include individuals who may previously have been overlooked, such as international students without a UK guarantor, freelance workers or retirees.
A rent guarantor also provides a practical way to manage the risk of income disruption when unexpected events occur. Even comprehensive tenant referencing only offers a snapshot of past behaviour. Economic uncertainty, rising living costs or changes to personal circumstances can affect a tenant’s ability to pay, while landlords remain responsible for mortgage payments and regulatory compliance. A professional rent guarantor ensures rental payments continue, reducing the impact of arrears and financial strain and keeping the rental business stable.
Professional rent guarantors also support landlords when tenants fall behind on rent. If a tenant is legally in arrears, the guarantor ensures payments are made, providing peace of mind. This offers greater security than a traditional rent deposit, which is capped at five weeks’ rent, and helps reduce the financial and administrative burden associated with eviction by supporting the timely resolution of arrears.
RentGuarantor supports open communication with tenants while protecting the landlord’s position, without immediate financial pressure influencing decisions. If necessary, RentGuarantor can handle court applications and eviction costs in cases of arrears, ensuring the process is carried out efficiently and promptly.
A professional rent guarantor does not remove all risk, but it expands the pool of potential tenants and reduces exposure to income loss, one of the most significant challenges landlords face. Including a professional guarantor as part of the tenancy toolkit allows landlords to take a considered approach to managing investments and confidently provide homes to good tenants who may not traditionally meet standard requirements.
