Renters’ Rights Bill | The Role of Guarantors
| Infosheet
This week we are exploring the evolving importance of guarantors in the private rental sector, especially in light of upcoming changes under the Renters’ Rights Bill. Traditionally, guarantors have been instrumental in supporting tenants with limited credit history or irregular income, helping them secure a tenancy. However, with the Bill set to remove key landlord tools like Section 21, Rent in Advance, and fixed-term tenancies, guarantors could shift from being helpful to essential in managing risk.
These changes may appear to make life fairer for tenants, but they will create real challenges when it comes to offering homes to renters in a wide range of circumstances, for example the self-employed, people who are new to the UK, employees on variable incomes and students.
This weeks infosheet provides practical guidance on:
- Ensuring guarantor agreements remain legally valid under the new framework
- Understanding why some individuals may be reluctant to act as guarantors
- The role and value of professional guarantors
- Key features to look for in a professional guarantor product
If you’re not already offering a Professional Guarantor product as part of your tenancy process, why not explore what’s available and talk to our team today about how we can help!