Guides for Landlords and Accommodation Providers

Choosing the right guarantor partner. What to Consider

Dani Smith, Sales Manager — Sat, 11 Oct 2025 15:10:21 GMT

If you’re letting a property or accommodation to students or working professionals – particularly international tenants – you’ll already know how common it is for renters to need a guarantor.

Managing multiple guarantors, assessing risk, and handling default cases can be time-consuming, inconsistent, and stressful.

That’s why many landlords and accommodation providers choose to work with a professional rent

guarantor partner.

But not all guarantor services are created equal.

In this blog, we’ll walk you through the key factors to consider when choosing a guarantor partner, so you can protect your income, support your tenants, and avoid any costly surprises.

What does a guarantor partner actually do?

At a basic level, a guarantor partner agrees to cover your tenant’s rent if they fall into arrears, provided the tenant has taken out a guarantor agreement with the partner. But the best providers offer more than just risk cover. They can help:

Mitigate risk to the landlord
Reduce upfront rent requests
Speed up the lettings process
Improve tenant conversion rates
Provide clarity, confidence, and support for tenants

It’s important to understand not just what they do, but how they do it. So here are some considerations to take into account when selecting your guarantor partner.

Payout guarantee & claims process

Let’s start with the most important question:

“What happens if a tenant can’t pay their rent?”

When partnering with a guarantor service, you need complete confidence that your rent will be covered quickly and in full.

Here are some questions to ask:

What is their payout rate for valid claims?
How quickly do they pay out after a missed payment?
Do they offer a 100% guarantee on valid claims?
Are there any delays, deductions or hidden exclusions?
Do they help get their tenants back on track with rent arrears?

Housing Hand has maintained a 100% payout on all valid claims, with a clear and simple claims process that gives you peace of mind and prompt resolution.

Speed and simplicity

When tenants are ready to move, adding a slow or clunky guarantor application process into the mix can lead to unnecessary delays, missed lettings, and frustrated tenants.

Here are some questions to ask to help you avoid this:

How quickly can tenants be approved?
Is the process online and mobile-friendly?
Can tenants apply from outside the UK?
Are renewals handled automatically?

For landlords and providers managing large numbers of tenants, working with a guarantor service should simplify your process, not add friction.

It’s also worth asking:

Can they integrate with your booking or application platforms?
Is there a dedicated account manager or partner portal?
Do they provide training or onboarding support?
Are co-branded materials available to help promote the service?
Do they support ID verification and keeping you compliant?

Choosing a partner who works with your systems can save your team hours and reduce admin errors.

Support for tenants and partners

Happy tenants are retained tenants, so a great guarantor partner should help you to improve the whole lettings experience and keep your building occupied.

Questions to ask:

Do they have dedicated support for tenants?
Is there a team available to answer partner queries?
How do they educate tenants about their responsibilities?
Do they help prevent arrears, not just respond to them?
Do they provide a mediation process to help get their tenant back on track?

Housing Hand combines tenant guidance with practical resources, including FAQs, live chat, multilingual support, and even wellbeing services, so tenants stay on track (and in tenancy) for even longer.

Flexibility and inclusion

Every tenant’s situation is different. Students, young professionals, and international renters often lack a UK-based guarantor, not because they’re unreliable, but because they’re new to the country. There are also many cases where family members cannot act as guarantors to UK residents because of low income or poor credit history.

Questions to ask:

Do they accept students, professionals, and international tenants?
Are they inclusive of different payment preferences and banking systems?
Do they offer flexible payment options for tenants (monthly vs upfront)?
Do they work with joint tenancies or HMO properties?

Cost and transparency

Transparency is essential. Not just for your tenants, but for you too.

You need to know that the tenant is receiving good service and a fair price. If the tenant is happy with their service, this reduces the risk of them leaving and you being faced with income loss.

Of course, tenants are responsible for securing their guarantor, but this shouldn’t mean unexpected fees or unclear pricing structures.

Here are some questions to ask:

Is the fee clearly stated up front?
Are there any additional admin or renewal charges?
Is there transparency on what the tenant is covered for?
What happens if the tenant leaves early or defaults?

Some providers will offer partnership discounts or commission schemes, but these should never come at the expense of clarity or service quality.

Extra value for your tenants

The right partner will do more for you than just guarantee rent. They should help you create a better rental experience.

Ask about:

Additional tenant support (e.g. at Housing Hand we offer 24/7 GP and counselling services to all of our tenants)
Co-branded materials and marketing support
Digital integration with your booking or lettings platform

Multilingual resources for international tenants

Why partner with Housing Hand?

100% payout rate on all valid claims
Flexible, tenant-friendly payment options
Trusted by over 4,000 accommodation providers
End-to-end partner support, training, and marketing
Fast approvals and a global reach

We’ve helped over 100,000 tenants and partnered with major PBSA providers, universities, and private landlords across the UK and Ireland

Ready to partner with a professional guarantor service you can rely on?

Learn more about partnering with Housing Hand or get in touch with our team today.

Rent guarantor vs rent guarantee insurance | Housing Hand

Graham Hayward, Managing Director — Tue, 07 Oct 2025 08:40:00 GMT

Collecting rent from tenants and covering monthly outgoings are understandably the biggest concerns for a landlord.

Two popular options are a rent guarantor or rental guarantee insurance; both of which can be implemented at the start of a tenancy agreement to support both tenants and landlords by underwriting any financial losses incurred if a tenant defaults on their rent.

But many people confuse the terms ‘rent guarantor’ and ‘rental guarantee insurance’. Despite being used interchangeably, they have entirely different meanings.

Below is a helpful comparison of the two, so you can decide which best suits your circumstances.

What is rental guarantee insurance?

Rent insurance is not a guarantor, it is an insurance policy for landlords. Rental guarantee insurance will ensure that a landlord gets paid when the tenant defaults. However, similarly to other insurance policies, tenants will have to meet certain conditions, have passed reference checks and provide a deposit, and if anything is missed, there is a risk that the insurer won’t pay. It is, however, quite common for landlords to still request a guarantor even if they have rent insurance.

What is a rent guarantor?

A rent guarantor is someone (usually a parent, guardian or third-party service) who agrees to take responsibility for the rent if there are any issues with payments. A guarantor will cover any rent arrears that the tenant doesn’t pay, which includes any damages amounting to more than the deposit.

Know the difference:

Due to a variety of circumstances, often, prospective tenants, both students and professionals, find themselves in a position of not being able to secure a guardian as a rent guarantor. This is where our services are here to help, however, it is important to understand the differences between a rent guarantor service like Housing Hand, and rental guarantee insurance:

Rent guarantor service:

Speeds up the process by removing the need for tenants to pay rent up front
Guarantees their rent for the whole of the tenancy
Affordable fees are taken directly from the tenant and spread across the months, with no cost to our partners
Co-signer required – What is a co-signer?
Housing Hand guarantees to pay out on all valid claims within 28 – 35 working days of receiving the relevant evidence and invoice

Services like Housing Hand can also take over the entire default process up to eviction, whereas other models still require the accommodation provider to chase up defaults. This is just another layer of support and reassurance for providers.

Rental guarantee insurance:

An insurance policy as opposed to a guarantor
Can be a cheaper option, but often has a lesser payout rate, more T&C’s and a much higher risk when dealing with the technicalities of an insurance policy
Can also work with a tenant guarantor for additional protection
Paid for by the landlord

Partnering with a rent guarantor service

Rather than turning away reliable applicants, especially international students or young working professionals, a partnership with a trusted guarantor service like Housing Hand offers a smarter and more secure solution for landlords and accommodation providers.

Why work with Housing Hand?

100% payout on all valid claims

Our partners benefit from complete peace of mind. Since 2013, Housing Hand has a proud record of paying out on 100% of all valid claims, even during challenging social and economic periods, such as Covid & Brexit. If a tenant defaults, Housing Hand covers the rent as agreed, which removes any financial risk to you.

Access to a wider tenant pool

Partnering with us allows you to confidently accept students and international tenants who may not have a UK guarantor, which helps you fill properties faster and reduce void periods.

Working together with our partners

With Housing Hands digital onboarding, we allow our partners to set up co-branded journeys and can also integrate into your booking journey if needed, with our webhook and deep URL technology. We also offer exclusive discounts to your tenants, making it easier for them to sign up, speeding up the process and getting your rooms filled faster.

No extra admin

We handle all the paperwork, communication, and support, providing you with verified guarantor deeds and a dedicated relationship team. With the Housing Hand guarantor service, no referencing is needed, as long as the tenant meets the qualifying criteria.

Trusted by thousands of agents, landlords, and universities

Housing Hand is the UK’s leading guarantor provider, working with accommodation partners nationwide to improve occupancy and protect rental income.

Supporting the wellbeing of your tenants

We offer a 24/7 GP and wellbeing service to your tenants, which can potentially reduce the number of defaults due to physical or mental ill-health.

To find out more, book an appointment with our partnerships team.

Author

Graham Hayward, Managing Director
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Why should letting agents partner with UK guarantor service Housing Hand? | Housing Hand

Percy Pigeon — Thu, 13 Jan 2022 14:59:04 GMT

It’s no surprise that one of the biggest challenges for letting agents when finding new tenants is ensuring that their guarantor is in place should they be a student, moving from abroad, or even a working professional. The Coronavirus pandemic has had an immensely negative impact on the rental sector, adding to these difficulties. Now more than ever, letting agents, landlords and tenants need a financial lifeboat due to the uncertainty of the economic climate. If you’re a letting agent looking to make the process easier, keep reading to find out how our rent guarantor service at Housing Hand could benefit you.

We’re partnered with an incredible portfolio of letting agents across the country, and pride ourselves on making the rental process simple, easy, and cost-effective for all parties. With additional tools such as our House Finder Service, Partner Portal, and brand new depositless offering, Housing Hand combines these to make the entire process a breeze.

How does the service work for letting agents?

Put simply, Housing Hand’s rent guarantor service ensures letting agents need not worry about tenants who are unable to provide a qualifying rent guarantor. The service is completely free for letting agents, and by partnering with us the range of tools available is widened to make the process incredibly easy. We guarantee that we cover all tenant liabilities for the duration of the tenancy – this includes cover for any rental default as well as other costs incurred, such as extensive damages or Joint and Several liabilities. A one-off and affordable fee is paid by the tenant at the start of their tenancy (or can be split across a period of months) and should a tenant be eligible, Housing Hand can process a tenant’s application within one day as all parts of the process can be completed online.

Combined with increasing the pool of potential tenants, there are a variety of other services that are available to our partners. Our House Finder Service allows students and working professionals to find properties with agents that are relevant to them, they are then able to secure their guarantor through Housing Hand making the whole process easy from end to end. Alongside our House Finder Service, the partner portal and depositless offerings are designed to remove any other rental constraints. So letting agents, let us do all of the hard work.

What is Housing Hand’s Partner Portal?

The Housing Hand Partner Portal service is an innovative way for letting agents to connect with new customers. As previously discussed, Covid-19 caused a colossal loss in revenue for businesses and letting agents, so our mission is to find a way to help reclaim that. The service is completely free and enables potential tenants to search for properties in that area that already accept Housing Hand as a guarantor. As a letting agent, if you fall into the catchment area letting agents receive their details to follow up with them directly. By using the Partner Portal Service, letting agents can benefit from increases in sales, and in turn lower acquisition costs with more leads coming forward. The fully automated platform also hosts a dedicated account manager that can help with the onboarding process. To see the Partner Portal in action click here.

How does Depositless work?

This year, Housing Hand is also pleased to announce the new deposit-less renting service. Depositless renting is one of a host of services that are there to benefit letting agents, landlords, and tenants. By using depositless, renters are able to cut the expensive up-front costs of deposits, by paying it monthly throughout their tenancy. This works harmoniously with the guarantor service, meaning that prospective tenants who are having difficulties with renting due to passing reference checks and finances are no longer needed to be turned away. This is hugely beneficial for letting agents as it increases the pool of prospective leads and makes the process of closing sales incredibly efficient from start to finish. To find out more about depositless renting and the benefits, click here.

If you are a letting agent and frequently find difficulty in the process of referencing and deposits for prospective tenants, and are looking to speed up your processes, get in touch to find out how to partner with us. You can book a chat with a member of our team here. Alternatively, our knowledge base has plenty of information to answer frequently asked questions.

5 Ways A Rent Guarantor Can Help Landlords | Housing Hand

Percy Pigeon — Mon, 13 Dec 2021 12:53:53 GMT

Understandably, one of the biggest fears for landlords when renting out their property is the potential risk of costs if a tenant fails to pay rent or cover expenses incurred for damages in the duration of their tenancy. Luckily, rent guarantor services like Housing Hand are here to provide a solution to help prevent landlords from standing surety to rental payments and other tenancy obligations.

There are a multitude of reasons why a landlord may feel the need to request that a prospective tenant provides a rent guarantor, one of the most current being the effects of the Coronavirus pandemic causing financial uncertainty across the country. Other prime examples are if a tenant has lived abroad for a while and returned to their home country, hasn’t borrowed money or used credit cards/has a low credit score, or are a student/in a job with low earnings.

The process of making this request can seem incredibly daunting and lengthy. This can also cause difficulty for the tenant, as finding an approved guarantor that is willing to be financially liable can prove challenging. A personal rent guarantor for a tenant would need to pass meticulous checks and meet specific requirements. Examples of these include ensuring that they are UK-based, have a good credit score, and earn a certain amount of income. In this circumstance, a rent guarantor service is the perfect solution to ensure peace of mind for both parties and minimise losses for landlords if things go wrong. We’ve gathered five ways that as a rent guarantor service, Housing Hand can help landlords:

1. It helps to streamline the rental process

By facilitating the entire rental process between the landlord and the tenant, we streamline it and do the difficult bits, so you don’t have to.

2. Landlords won’t lose any rent

At no added cost to the landlord, we eliminate the risk of rent loss completely, meaning that both parties are covered. When tenants choose to use us, landlords are guaranteed the full rent obligation under the tenancy agreement.

3. Help with finding new tenants

Our free house finder service will help you to fill rooms quickly and find replacement tenants, meaning that landlords are not left out of pocket.

4.Increased occupancy

By using the free house finder service combined with Housing Hand we are able to provide Landlords with a larger pool of creditworthy applicants, increasing the chances of acquiring an occupant.

5. Your disputes will be resolved

By acting as a guarantor, Housing Hand is happy to mediate any disputes and ensure that any issues are resolved quickly, meaning that the stress and hassles are taken off of the landlord’s plate.

How does a rent guarantor service like Housing Hand work for landlords?

At Housing Hand, we work closely with landlords and act as their UK-based guarantor. If the landlord has a prospective tenant who requires a guarantor to rent, they simply need to point them in the direction of our service. After confirming they are eligible, they’ll receive a quote for the rent guarantor service in minutes. The service is completely free for landlords, and the one-off fee incurred for tenants at the beginning of their tenancy is affordable, and can be paid by splitting the cost out over a period of months if necessary.

Alongside making the process of finding and occupying a new tenant incredibly easy, Landlords can also have peace of mind that Housing Hand is bound for a fixed term of the tenancy so there is no backing out. Covering all customer’s tenant liabilities that are detailed in the tenancy agreement, Housing Hand’s guarantee makes sure that if a tenant defaults on something, landlords are able to invoice the details and expect their payment within 28 days. This in turn means that landlords will no longer need to turn away valid tenants due to a lack of supplying a qualifying UK-based guarantor. It also guarantees stability for tenants, resulting in a winning solution for both parties.

If you are a landlord renting a property and are looking to let to students or working professionals who may be eligible to use the Housing Hand service, get in contact. Book in a chat with a member of our team here to find out more, or point the letting agent or tenant towards our service. Alternatively, our knowledge base has plenty of information to answer frequently asked questions.

How to market your property to generation rent. | Housing Hand

Percy Pigeon — Wed, 18 Mar 2020 17:09:00 GMT

Generation rate is growing and is becoming the norm.

According to recent figures, the average house price in the UK is £234,742. Brexit notwithstanding, property values are now rising again. As expected, there are wide geographical variations – the North East (£130,688) is at one end of the scale, which contrasts sharply with property prices in the capital (£471,504).

Who is Generation Rent?

Millions of young adults in the UK now belong to what’s affectionately termed ‘generation rent’, whose expectation to buy their own home is well below that of previous generations. Whether this market segment chooses to rent their home out of necessity or preference, the impact on the demand for rental property is huge – and landlords should be aware of the implications.

The phenomenon of generation rent coincided with the coming of age of millennials who now make up the 25-43 year age group, and this is the target demographic. Bear in mind that these are digital natives, comfortable with technology and the marketing opportunities this brings. They’ve been targeted, marketed and remarketed to all their lives, which has turned them into savvy, demanding consumers.

For all these demanding consumers, Housing Hand is always here to help them rent and provide them with a market-leading guarantor service.

Can’t buy or won’t buy?

When it comes to property, there are two distinct groups of renters, those who rent because they choose to, and those who rent because they cannot afford to buy.

Cannot get on the housing ladder.
A combination of high property prices, stagnant income growth and tighter lending policies have made home owning harder over the last 20 years. Most properties now require a 5-20% deposit for lenders to consider financing the purchase. As a consequence, only 23.9% of homeowners in 2018/2019 were aged between 24 and 44 years old, according to recent statistics.

Renting out of choice.
Recent research by AXA Insurance has shown that a significant proportion of millennials are happy to rent because of the freedom and flexibility offered compared to owning a home. Renting, it seems, can also be a deliberate lifestyle choice, one that rejects the burden of mortgage payments in favour of more transient lifestyle options. As such, renting a home may no longer just be a stopgap while saving up for a deposit.

How to reach your segment market.

Marketing in the property market has traditionally not been target specific to millennials or their lifestyle considerations and concerns. So, what can you do to reach this demographic with your marketing messages?

Responsible landlords.
Comfort and security are key for all tenant experiences, and even more so for millennials who expect things to be working the first time, or fixed quickly. A landlord or letting agency that acts promptly and responsibly to ensure that their rental property is well maintained and regularly looked after is a big plus.

When a new tenant moves in, a comprehensive inventory or a schedule of condition will help to protect the position of both parties and provide evidence to prove the condition of the property at the time it was let. Some surveyors offer templated documents for your convenience.

Experiences vs possessions.
One thing we know about millennials is that experiences and instant gratification are arguably more important than material possessions. Despite mounting student debt, young adults are among the biggest spenders in Britain.

This is something landlords should take into consideration. Location and proximity to eateries and retail areas are highly prized among young tenants whose lifestyle revolves around socialising and shopping.

Home sweet home.
Without a sense of ownership as far as bricks and mortar are concerned, homeware becomes a defining feature of the rented home. Often, there’s no possibility to customise or even decorate the property to the tenant’s taste, making quick fix purchases an increasingly popular choice to make a house a home.

From cosy, colourful cushions and floor rugs to houseplants to second-hand furniture that can be disposed of when moving home, millennials are travelling light. Promote your rental flat by highlighting the space available, and the versatility this brings.

Honest and open communications.
Generation renters prefer direct messages without wasting time searching for detailed information. Your online marketing should start with a clear, concise headline that enables them to decide straight away whether the advertised property understands their problem, speaks to their situation and offers them the solution they’re looking for.

Focus on promoting the property’s benefits, not its features – ‘sell the sizzle, not the sausage’ – using all the tools at your disposal. Share your advert on social media, and make full use of live streaming new listings and open houses on Facebook Live, Instagram Live or YouTube Live. That way, your would-be tenants can make a decision and express their interests without having to take valuable time out of their busy day to view potential properties, while you save office resources too.

Residential landlords: What’s your favourite type of tenant? | Housing Hand

Percy Pigeon — Mon, 05 Aug 2019 09:24:33 GMT

20 years ago, roughly two-thirds of 25-34-year-olds in London and the Home Counties were homeowners. Today, that figure is halved. The sharp rise in house prices relative to incomes, particularly in the South East, has transformed the residential lettings market into a lucrative business.

Residential landlords now have a wide variety of eager tenants to choose from. But in order to serve their chosen market knowledgeably and effectively, it’s important to understand the particular needs, characteristics and level of risk associated with each group. Let’s take a look at the 6 major types of tenants.

Family members

Tenants that are also relatives can be a convenient arrangement for both sides and a highly attractive proposition for residential landlords. Renting to a family member has the advantage of doing away with the cumbersome business of having to search for and screen a suitable tenant. There is an implied greater level of trust based on the simple fact that a member of the family has already been vouched for.

In this situation, it is tempting to forego standard formalities such as tenancy agreements. However, the risk of not following formal procedures can be significant. Not all family relationships are harmonious and even family members can fall out. Having a written agreement in place should be an essential precaution to prevent confusion and disputes.

What’s more, many buy-to-let mortgages specifically forbid having a family member as a tenant, unless you choose a specialist family buy to let mortgage product. Finally, the desire to offer discounted rents to family members is at odds with lenders’ requirements to charge rents of 125% or more of the monthly mortgage payments.

Working professionals

Working professionals must surely be every residential landlord’s dream tenants. The appeal lies in the security of a steady, permanent job guaranteeing rental payments with little chance of arrears arising. With everyone out working every day, there’s less noise to contend with, less wear and tear on fixtures and fittings and less hassle all round.

Modern or newly built 2- bedroom houses and flats are most suitable for this market. Maintenance costs are low and they suit the profile of young, professional and reliable tenants who are renting while saving up for a place to buy.

Working professionals are highly sought after tenants, meaning they have greater bargaining power than other types of tenant – which could be a problem. What’s more, no tenant is risk-free. Would you be told if your tenants became unemployed? Would they still be able to afford the rent, and pay promptly? Would your existing insurance policy still be valid?

Families with children

The number of families renting their homes has increased dramatically in recent years. In contrast to 5 years ago when young single professionals and couples constituted the biggest tenant group, families are now the most common type of household in the residential private rented sector.

The advantage of renting property to families is stability. Their tenancies tend to last longer; they’re looking for a permanent home for settling down. Unable to afford to buy their own home, they find themselves trapped in the rental sector.

Family tenants look for unfurnished properties, preferably with some outdoor space for children to play. Close proximity to schools, shops and transport links are a bonus, driving up yields.

HMO’s

Properties shared by three or more unrelated tenants renting individual bedrooms, often on separate tenancies, are known as Houses of Multiple Occupancy (HMO). Recent changes in the legislation mean that properties with five or more occupants comprising two or more family units will also require an HMO licence.

For residential landlords, dividing up a property and renting it as an HMO requires the most admin work, navigation of regulation and property maintenance and upkeep. However, if you don’t mind putting in the extra work, the financial returns can be significant. Some London landlords reported double-digit returns on their HMO rentals in 2016.

On the basis of yield alone, assuming you can keep void periods to a minimum, this makes HMOs a highly attractive proposition for landlords, particularly those who are mortgage-free. It should be noted that many mortgage lenders are reluctant to lend on HMOs or rental properties that require major renovation.

Students

For rental properties in or near university towns, the student market is an obvious choice. Students tend to be unfussy tenants, valuing the convenience of being close to campus (or at least have decent transport links) rather than prime residential areas.

No longer seen as irresponsible and high-risk occupants, today’s students are reliable tenants. Their accommodation costs are covered by student loans, while their parents typically act as guarantors. International students will often pay 6-12 months upfront for their accommodation, especially if they don’t have a UK based guarantor or they can secure companies like Housing Hand who can provide a UK guarantor service for these students.

As long as a guarantor is in place, and a comprehensive inventory is taken at the start and end of the tenancy, student lets can be a lucrative option, with rental yields in some parts of the UK reaching 10%.

Tenants claiming benefits

This is the least popular group of tenants, for all the obvious reasons: general financial instability, a higher risk of rent default, housing benefits no longer being paid directly to landlords by the council and recent irregularities with Universal Credit payments. What’s more, your insurance company may refuse certain types of cover while some BTL mortgage providers may not be interested in financing a rental property with tenants on benefits.

However, there is nothing intrinsically ‘bad’ about renting to people on benefits. And with around 20% of the 4.5 million households in rented accommodation being in receipt of housing benefit, it’s a big market residential landlords would do well not to ignore.

Establish clear ground rules and procedures right at the outset to safeguard your interests. Vet prospective tenants carefully to get an insight into their rental history, make sure you make a deposit of at least one month’s rent in advance and insist on a strong rent guarantor.

This article about “Residential landlords: What’s your favourite type of tenant?” was written for Housing Hand – the Award-Winning UK Rent Guarantor Service by Annie Button. For more information on how you can work with Housing Hand, visit housinghand.com or call 02072052625 and select option 2.

Author

Percy Pigeon
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