Guarantors (should Tenant default) --

Guarantors — Legal Protection for Landlords
✓ PIMS Renters’ Rights Compliant

A guarantor can be valuable protection for a landlord, but only if the guarantor is real, financially worth pursuing, properly checked, correctly engaged and legally bound. Many guarantor agreements fail when landlords try to rely on them.

What a guarantor actually does

A guarantor agrees to be responsible for the tenant’s obligations if the tenant fails to comply. This can include rent arrears, damage, unpaid charges and other losses, depending on the wording of the guarantee.

The landlord’s protection depends on the guarantee being properly drafted, properly signed and supported by clear evidence that the guarantor understood what they were agreeing to.

Legal requirements for an enforceable guarantor

  • The guarantee must be in writing and signed.
  • The guarantee must clearly define what is being guaranteed.
  • The guarantor should see the tenancy agreement before signing.
  • The guarantor should understand the rent, tenant obligations and potential liability.
  • Where required, the guarantee should be executed as a deed and witnessed correctly.
  • The guarantor’s liability must be linked clearly to the tenancy agreement.

Where guarantors fail

  • Guarantor not properly witnessed → agreement may be unenforceable.
  • Guarantor not given the tenancy agreement → liability may be challenged.
  • Rent increases or tenancy changes made without guarantor protection → guarantee may be weakened.
  • Liability wording unclear → court may refuse or limit enforcement.
  • Guarantee does not cover the periodic tenancy structure → protection may be lost.
  • Guarantor has no meaningful assets → even a valid guarantee may be commercially worthless.

PIMS experience — where guarantors fail in practice

PIMS has extensive experience of cases where landlords believed they had a valid guarantor, only to discover at the point of enforcement that the protection was ineffective, disputed or of little practical value.

  • The guarantor denies signing the agreement or disputes the signature.
  • The guarantor was never properly engaged in the tenancy process.
  • The guarantor has insufficient financial means to meet the liability.
  • The guarantor details are incomplete, inaccurate or difficult to verify.
  • In some cases, the guarantor is effectively fictitious or cannot be traced.

It is also common for guarantors, particularly family members, to resist liability when called upon. A parent may be willing to help the tenant obtain the property, but later say they did not fully understand the commitment or do not accept responsibility when rent arrears or damage arise.

In those situations, the landlord can only rely on the guarantor if the agreement has been properly structured, properly signed and supported by a clear evidence trail.

PIMS best practice:
  • Carry out proper identity checks on the guarantor.
  • Carry out credit checks on the guarantor, not just the tenant.
  • Check whether the guarantor has meaningful financial standing.
  • Property ownership is a strong indicator that the guarantor may be worth pursuing.
  • Ensure the guarantor is fully aware of their obligations.
  • Ensure the guarantor signs correctly, ideally as a deed where required.
  • Keep evidence that the guarantor received or had access to the tenancy agreement.

A guarantor who cannot be enforced against provides no meaningful protection. Without proper diligence, the guarantee may not be worth the paper it is written on.

How the PIMS tenancy agreement protects you

The PIMS tenancy agreement is structured so guarantor protection is not left to chance. It helps ensure the guarantor obligations are linked to the tenancy and that the agreement is prepared within the correct Renters’ Rights framework.

  • Clear guarantor liability wording.
  • Guarantor linked directly to the tenant’s tenancy obligations.
  • Designed to support deed execution where required.
  • Works with the Renters’ Rights periodic tenancy framework.
  • Avoids reliance on outdated fixed-term AST assumptions.
  • Helps landlords create a stronger evidence trail before the tenant moves in.
Create PIMS Tenancy Agreement

Guarantor checklist before you grant the tenancy

✓ Check the person

  • Confirm full name and address.
  • Verify identity.
  • Obtain contact details.
  • Check creditworthiness.
  • Check whether they own property or have meaningful assets.

✓ Check the paperwork

  • Provide the tenancy agreement before signing.
  • Explain the liability clearly.
  • Use proper guarantor wording.
  • Execute as a deed where required.
  • Ensure witnessing is done correctly.

PIMS practical insight

A guarantor agreement is not just a formality. It is a financial safety net. Courts will only enforce what is properly drafted, properly signed and supported by evidence. Landlords should treat guarantor checks with the same seriousness as tenant referencing.

Before relying on a guarantor — check them

A weak guarantor is not a meaningful solution. Use tenant and guarantor checks before granting the tenancy.

PIMS final rule:

Do not assume a guarantor will protect you. Make sure the person is real, financially worth pursuing, properly checked, fully engaged and legally bound before the tenancy starts.