Updated Tenant Fees Guidance: Professional Guarantor Agreements and Compliance

Recent updated government guidance concerning the Tenant Fees Act 2019, together with the tenancy reforms introduced by the Renters' Rights Act 2025 highlights some areas that landlords and letting agents should review:

• Existing Guarantor Agreements, particularly agreements entered into before 1 May 2026 that refer to a fixed-term assured tenancy; and 
• Professional Rent Guarantor services or contracts, where a tenant is required or encouraged to enter into a paid third-party contract as part of securing a tenancy.

These changes are particularly relevant now that Assured Shorthold Tenancies have been replaced by Assured Periodic Tenancies in England. Landlords and letting agents have been advised to review their existing guarantor documentation and ensure that any new guarantor arrangements are compatible with the current tenancy framework.

Existing Guarantor Agreements and the Renters' Rights Act

The introduction of Assured Periodic Tenancies does not automatically mean that every existing guarantor agreement is invalid. However, the government has highlighted that guarantor agreements entered into before 1 May 2026 may be affected by the tenancy reforms, particularly guarantor liability in the event of the death of tenants. Landlords should therefore review existing guarantor agreements to determine whether the wording continues to operate effectively following the conversion to Assured Periodic Tenancies. 

Professional Rent Guarantor Services and the Tenant Fees Act 2019 

Where a tenant cannot provide a suitable individual guarantor, they may consider using a professional rent guarantor service. 

A landlord can require a tenant to provide a guarantor as a condition of granting a tenancy, however this does not mean that a landlord can request a tenant to purchase a particular guarantor product or enter into a third-party service contract, to do so will be deemed a prohibited payment under the Tenant Fees Act 2019.  Landlords and letting agents should therefore exercise caution when recommending or dealing with professional guarantor services. Where a tenant independently decided that they want to use a professional guarantor service, the tenant can choose to do so. 

Our Guarantor Agreements

For subscribers using our current guarantor agreement templates, these have been reviewed and updated and reflect the Renters' Rights reforms. Our guarantor templates are designed to accommodate the current Assured Periodic tenancy framework and avoid relying solely on the existence or expiry of a fixed term.  Download Assured Periodic Tenancy Agreement Templates. 

Updated Tenant Fees Act Guidance

We have updated our Guidance Notes for residential landlords and letting agents and Tenant Fees Act 2019 (England) Matrix which are available to download.