A rent guarantor service is a company that agrees to cover your rent if you cannot pay, in return for a fee from you. If it pays your landlord, you still owe that money back to the company, so it replaces a family guarantor, not your own responsibility for the rent.
How a guarantor service works
Many landlords and letting agents ask for a guarantor: someone who promises to pay if the tenant does not. If you have no one suitable, a guarantor service can take that role. The steps on the providers’ own pages are similar:
- You apply online with ID and proof of income or study.
- The company checks you and gives you a quote.
- Your landlord or agent has to accept the company as your guarantor. Not every landlord will.
- You pay the fee, either before the tenancy starts or in monthly instalments, depending on the provider.
- If you miss rent, the landlord claims from the company, which then asks you to repay it.
Housing Hand’s page, for example, says that if you miss a payment it pays the accommodation provider and then contacts you “to organise an interest-free payment plan to repay us for the rent we have covered”. RentGuarantor’s help page says it will contact your landlord or agent “to confirm they’re willing to accept us as your Rent Guarantor”.
Who can use one
Eligibility rules are set by each company, so read them before you apply. Two examples from provider pages checked on 4 October 2026:
- Housing Hand says applicants can be from the UK or abroad, studying or working full-time (including self-employed). It says working professionals “need to show they earn 2.0x their contribution to the rent” and students need proof of study. It also asks for a co-signer over 18, usually a working parent, relative or friend, and says it does not credit check you or the co-signer.
- RentGuarantor says its service is “subject to Agent/Landlord acceptance” and that you need to renew after 12 months if you still need a guarantor.
A guarantor service usually guarantees rent. Check whether it also covers damage or other costs under your tenancy, because a landlord may want a guarantor who does.
What it costs and when you pay
Prices change, so always check the current fee on the provider’s own site before you commit. These are the figures the providers published on 4 October 2026:
| Provider | What its page said (4 October 2026) | When you pay |
|---|---|---|
| Housing Hand | £20 onboarding fee; guarantor “starting from just £40 / month” | £20 on application; the rest upfront or monthly from move-in. Payments run on a 12-month contract even if your tenancy is shorter. |
| RentGuarantor | “Starting at just £249” | Before the tenancy begins; another fee to renew after 12 months |
“Starting from” means some people pay more. Your quote will depend on your rent and circumstances. FigurePath does not recommend any particular provider.
Can a landlord make you use one?
In England, no. GOV.UK guidance on fees says a landlord can ask you to provide “a suitable rent guarantor as a condition of granting the tenancy”, and that “a tenant could choose to contract a professional guarantor service”. But it is a prohibited payment for a landlord to require you to pay for insurance or “start a contract for a service”. It lists “a professional guarantor service” as something a tenant can use “if they choose to”.
So the landlord can ask for a guarantor, and you choose whether that is a person or a company. The Tenant Fees Act 2019 applies in England only. Shelter’s legal guidance says the Act also applies to guarantors, which limits interest on unpaid rent to 3% above the Bank of England base rate.
In Scotland, mygov.scot says your landlord can ask you for a guarantor, who must sign the guarantor section of the tenancy agreement.
For how a family guarantor works, see renting with a guarantor. If your credit history is the problem, read renting with a low credit score.
Worked example (fictional)
Ama rents a room for £800 a month. Her landlord wants a UK guarantor and she has none. She is quoted by a fictional service, “Example Guarantee Co”, at a £30 set-up fee plus £50 a month for 12 months.
- Monthly fees: £50 × 12 = £600
- Total cost for the year: £30 + £600 = £630
In month five Ama’s pay is late and she misses £800 of rent. The service pays her landlord £800. Ama now owes the service £800 and agrees a repayment plan. The £630 fee did not cover her rent. It paid for the guarantee.
These figures are invented. They are not any real provider’s prices.
Check the numbers first
Use the guarantor affordability calculator to see whether a family member’s income meets common guarantor checks before you pay for a service. If no one qualifies, compare the yearly cost of a guarantor service against your other options, such as a cheaper property that you can pass referencing for on your own income.
Before you sign up, ask:
- Has my landlord or agent confirmed they accept this company?
- What is the total cost for the whole year, not just the first payment?
- Do I pay for 12 months even if I move out sooner?
- Does it cover rent only, or damage too?
- What happens, and what will I owe, if the company pays my landlord?
Related: Can you rent as a student without a UK guarantor?
Sources
- GOV.UK: Fees you can charge as part of a tenancy (England), checked 4 October 2026
- Shelter Legal England: Guarantors, checked 4 October 2026
- mygov.scot: Checks before you sign a private tenancy agreement, checked 4 October 2026
- Housing Hand: Rent guarantor service (provider page), checked 4 October 2026
- RentGuarantor: How does it work? (provider page), checked 4 October 2026
This guide is general information, not legal or financial advice. Report a possible error.