Advantages of guarantor services still not fully understood within the private rented sector

  • Housing Hand seeking to shed light on multiple benefits of using a guarantor company for covering rent performance
  • Guarantor services helping landlords, agents and tenants
  • Pandemic making such services more valuable than ever

UK rent guarantor service Housing Hand is seeking to clarify and confirm the advantages of guarantor companies to those operating in the private rented sector. It comes after the company revealed that there is still a common misconception among many letting agents that such services are only for the benefit of landlords. Some landlords, meanwhile, mistakenly believe that they won’t continue to receive full rent payments, should the tenant not be able to pay.

The way that guarantor companies work delivers a triple set of benefits, with landlords, letting agents and tenants all gaining protection as a result of using these services. Yet the advantages are not fully understood. That’s why we’re working to showcase the triple benefits of guarantor services for the rental sector.”

Jeremy Robinson, Group Managing Director, Housing Hand

The benefit to landlords is immediately apparent. Should the tenant become unable to pay part or all of their rent, the landlord has a safety net that means they won’t lose out financially – the rent guarantor company pays 100% of the rent for all valid claims.

This safety net benefits agents as well. Rent collection and maintenance charges only apply as long as the rent keeps being paid. If a tenant cannot pay, then the agent loses out as well as the landlord. However, with a rent guarantor company in place, both landlord and agent will continue to receive their income, despite the tenant’s inability to pay.

Of course, for the tenants the advantage comes from not having to move out or face a lengthy and stressful potential eviction process when they can’t pay their rent. They can instead remain in the property and repay the debt over a period of time.

“There are many different risks and priorities for landlords, agents and tenants these days. The economic impact of the pandemic is already starting to bite and is sadly likely to get worse as we head into 2021. That’s why rent guarantor services are so important right now.”

Terry Mason, Group Operations Director, Housing Hand

One issue around how rent performance may be underwritten needs specific clarity and we can use the Housing Hand example to demonstrate this. Housing Hand (as a guarantor company) operates guarantees as a professional service. It is backed by Lloyds syndicate insurance, delivers 100% pay-out and is governed by the landlord.

A company guarantor, meanwhile, is where a company that provides other services or products, may guarantee its employees’ rent. These are subject to the quality of the company and are typically not backed by specific insurance.

And then there’s rental guarantee insurance, which is where a landlord or letting agent, in conjunction with an insurance broker, issues a policy that covers rent with a more limited scope or value.

“We’ve spent nearly eight years now proving that the guarantor company model is the safest approach for tenants, landlords and agents. All three key stakeholders benefit from knowing that they will be protected from financial loss and from the incredible stress of an eviction process. The more the mutual benefits are understood across the private rented sector, the better it will be for all concerned.”

Terry Mason, Group Operations Director, Housing Hand


For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit