Guarantors Explained for Renters in Wales

If you’re renting in Wales, you might be asked for a guarantor during your tenancy application. Understanding what a guarantor is and their responsibilities can help you navigate your tenancy agreement confidently. In this article, we'll break down the key points, explain the latest laws in Wales, and link to official resources to guide you if you’re asked to provide a guarantor.

Understanding Guarantors in a Welsh Tenancy

A guarantor is a person—usually a friend or family member—who agrees to pay your rent or cover other tenancy-related costs if you’re unable to do so. Landlords often request a guarantor if you're unable to show regular income, have a low credit rating, or have little or no renting history.

Why Do Landlords Ask for a Guarantor?

• Security for Landlords: A guarantor lowers risk for landlords if a tenant can’t pay rent.
• Supporting New Renters: Helps tenants with limited income or renting history secure accommodation.
• Legal Obligation: If you fall behind on rent or break terms of your tenancy, the guarantor will be liable for payments or damages.

Landlords are required to provide clear information about the guarantor's responsibilities, and both you and your guarantor should fully understand the commitment before signing.

How Does a Guarantor Agreement Work in Wales?

In Wales, most renters now have what’s known as an “occupation contract” under the Renting Homes (Wales) Act 2016^[1]. A guarantor agreement is a separate, written agreement from your main contract, and outlines exactly what your guarantor is responsible for.

• The Guarantor’s Responsibilities: Usually cover unpaid rent, but may also include damage beyond reasonable wear and tear, or other breaches of contract.
• Agreement Terms: The agreement should clearly state when and how the guarantor’s liability ends—such as fixed term only, or continuing until the tenancy ends (even if you renew).
• Changes to Contract: Significant changes (like a rent increase) may require a new guarantor agreement, so always check before signing.

Is There an Official Guarantor Form in Wales?

Currently, there is no standard government-issued "guarantor form" for occupation contracts in Wales. Instead, landlords or letting agents typically provide their own version. Ensure any document:

• Details the responsibilities clearly
• Specifies the length of the guarantee and circumstances under which it ends
• Matches your current occupation contract terms

Your guarantor may wish to seek legal advice before signing. For more information on contracts and tenancy types, visit the Renting a home: information for tenants in Wales page from the Welsh Government.

The Rights and Risks for Guarantors

Being a guarantor is a serious, legally binding commitment. It is highly recommended both the tenant and prospective guarantor understand:

• Whether the guarantee covers just the initial contract or any renewals/changes
• If the guarantor is responsible for only your portion of rent (in shared houses) or the whole tenancy ('joint and several' liability)
• How to end a guarantor agreement—some don't end automatically if you move out or the contract is renewed

If Problems Arise: Disputes and Enforcement

If a landlord believes rent is unpaid or conditions are breached, they can pursue the guarantor for payment through legal channels. Disputes over occupation contracts or guarantees in Wales can be escalated to the Residential Property Tribunal Wales.

Action Steps for Renters

• Request a written guarantor agreement and review it carefully
• Ensure your guarantor understands and agrees to the terms
• Ask for clarification on any unclear points from your landlord or letting agent
• If in doubt, seek guidance from Shelter Cymru or Welsh Government tenant resources

This process protects both tenants and guarantors and helps prevent misunderstandings later.

Frequently Asked Questions About Guarantors in Wales

1. Do I have to have a guarantor if I want to rent in Wales?
   Not all landlords require a guarantor, but you may be asked for one if you have a low income, are a student, or have limited credit history. It's up to the landlord's policies.
2. Can my guarantor be based outside the UK?
   Most Welsh landlords require a UK-based guarantor for ease of legal enforcement, but some may accept overseas guarantors with additional checks. Always ask your landlord.
3. Is my guarantor responsible for the full tenancy or just my share?
   This depends on the guarantor agreement. In many shared houses, the guarantor is "joint and severally liable", meaning they may be responsible for the full tenancy, not just your portion.
4. How can a guarantor end their responsibilities?
   The guarantee usually ends at the end of the fixed-term contract, but not always. To terminate it early or clarify terms, check your guarantee form or seek advice from a housing service.
5. What legislation covers guarantor agreements in Wales?
   Guarantor arrangements come under the Renting Homes (Wales) Act 2016.

Need Help? Resources for Renters in Wales

• Welsh Government's guide for tenants – Comprehensive information on rights and obligations
• Residential Property Tribunal Wales – Handles tenancy contract disputes in Wales
• Shelter Cymru Advice – Free expert support for tenants

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1. Renting Homes (Wales) Act 2016: The key legislation governing occupation contracts and related rights and responsibilities, including guarantor arrangements.
2. Residential Property Tribunal Wales: The tribunal responsible for resolving disputes relating to occupation contracts and tenancy matters in Wales.
3. Welsh Government: Renting a home for tenants: Authoritative tenant advice and downloadable guides about rent, maintenance, and contract terms.

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