Date Published 02 November 2023
Being a landlord can be challenging when tenants stop paying rent, especially in the current economic climate where many tenants are facing financial difficulties. Relying on rent guarantors is one way that some landlords address this issue, but it does come with both benefits and potential downsides.
Rent guarantors are individuals or companies who agree to cover unpaid rent if the tenant defaults. This can provide landlords with some peace of mind and make it easier to rent to a wider range of tenants, including those with less established rental histories or lower credit scores.
It's important for landlords to carefully consider the pros and cons of using rent guarantors and to thoroughly research any companies or individuals offering such services. Additionally, landlords should be clear about the terms and conditions of the rent guarantor agreement and understand their own responsibilities in the event of a tenant default.
Ultimately, while rent guarantors can offer a sense of security, they should not be seen as a one-size-fits-all solution. Landlords should continue to conduct thorough tenant screenings and maintain open lines of communication with tenants to address financial difficulties or other issues that may arise during the tenancy.
