What am I agreeing to if I act as a guarantor on a tenancy?
What a guarantee actually covers, the three clauses that decide how bad it can get, and how to limit it before you sign rather than argue about it afterwards.
- Difficulty
- intermediate
- Time
- 11 min
- Read
- 5 min
- Safety
- warning
Short answer
A guarantor promises to pay if the tenant does not. Three things decide the exposure: whether it covers only the tenant's share or the whole rent, whether it covers only rent or also damage and costs, and whether it ends with the fixed term or continues for as long as the tenancy does. Ask for all three to be limited in writing before signing, and keep a copy of what you signed.
Guarantees are handed over with the tenancy paperwork as though they were a formality, and they are not: they are a free-standing contract under which you can be pursued in court for someone else's debt. The version that catches people is a joint and several guarantee in a shared student house, where the guarantor for one bedroom is liable for the rent of all six.
Safety
Step by step
- Establish what is being guaranteed.The tenant's share of the rent, or the whole rent under a joint tenancy? In a joint tenancy the tenants are usually jointly and severally liable for the whole rent, and a guarantee written against 'the tenant's obligations' therefore covers all of it.
- Establish what else it covers.Rent only, or also damage, cleaning, unpaid utilities, interest and the landlord's legal costs? Costs clauses can turn a modest arrears figure into a much larger claim.
- Establish how long it lasts.Until the end of the fixed term, or for as long as the tenancy continues in any form? In England there are no longer fixed terms in private assured tenancies, so an open-ended guarantee can run indefinitely. That is the single most important clause to negotiate.
- Ask for a cap in writing.A stated maximum, or a limit to one tenant's share, or an end date. Landlords and agents frequently agree to a reasonable limit when asked, and never volunteer one.
- Check the formalities.A guarantee must be in writing and signed. Some are executed as deeds, which changes the limitation period for a claim against you. Read what you are signing and take a copy away.
- Understand what triggers it.Usually a demand from the landlord after the tenant defaults. There is often no requirement to sue the tenant first, so the first you hear may be a demand for the whole outstanding amount.
- Know how it ends.Generally only when the tenancy ends, when the landlord releases you in writing, or when the guarantee's own terms expire. Withdrawing part-way through is rarely possible unless the document allows it.
- Ask what happens if the tenancy changes.If a housemate leaves and is replaced, or the rent is increased, does the guarantee continue? A well-drafted guarantee says. A poorly drafted one leads to an argument you will have to fund.
- Consider the alternatives.Some landlords accept several months' rent in advance instead of a guarantor, or a guarantor service, which charges a fee and takes on the obligation. In England, note that rent in advance is now capped, which narrows that option there.
- Tell the tenant to keep you informed.Agree that you are told immediately about any missed payment. Guarantors are usually contacted when the arrears are already serious, and early information is the only thing that lets you act.
Tips
- Ask for a written cap. It is the single most effective request and it is granted more often than people expect.
- Take a photograph or scan of the signed document. Guarantors are routinely asked to honour terms they have never seen again.
- Agree with the tenant that you are told about any missed payment on the day. Early information is the only real protection you have.
Common mistakes
- Signing without reading the duration clause — An open-ended guarantee on a periodic tenancy has no natural end, and in England fixed terms no longer exist to provide one.
- Assuming it covers only one person's share — In a joint tenancy the tenant's obligation is usually for the whole rent, so a guarantee of that obligation is too.
If it doesn't work
You have received a demand for the whole year's rent
Cause: A joint and several guarantee in a shared house — Fix: Get a copy of what you signed and take advice before paying or refusing. Ask the landlord for a full rent statement and for what has been recovered from the tenants. Do not ignore it — a judgment in default is the worst outcome.
The tenancy ended but you are still being chased
Cause: Arrears or damage from the tenancy period, which the guarantee still covers — Fix: Ask for an itemised account and the evidence, including the check-out report. Deductions must still be justified, and a guarantor can dispute them just as a tenant could.
You are being asked to sign at the viewing
Cause: Pressure selling of the tenancy — Fix: Ask for the document by email and read it away from the office. No legitimate landlord loses a good tenant because a guarantor took a day to read a contract.
Questions people ask
Can I be pursued for a housemate's rent?
If the tenancy is joint and the guarantee covers the tenant's obligations under it, then yes — the obligation is for the whole rent. This is the most common and most damaging surprise, and it is fixed by limiting the guarantee in writing before signing.
Can I stop being a guarantor?
Usually only if the document allows it or the landlord agrees in writing. Ask before you sign whether there is a notice mechanism, and treat its absence as a reason to limit the term instead.
Does it affect my credit file?
The guarantee itself is not usually reported, but a county court judgment against you is, and it stays visible for six years. That is the real credit consequence.
Does this differ across the UK?
The core contract law is broadly similar in England, Wales and Northern Ireland, and Scotland has its own law of cautionary obligations with some different formalities. Take Scottish advice for a Scottish guarantee.