Rent guarantees soar due to the cost of living crisis
As the cost of living continues to rise, many tenants are finding it difficult to keep up with their rent payments. In response, landlords are increasingly demanding rent guarantees from their tenants.
A rent guarantee is an agreement between a tenant and a landlord in which the tenant agrees to pay a set amount of rent each month, regardless of changes in the cost of living. This generally involves the landlord requesting a guarantor (i.e. the tenant’s family member or close friend) that agrees to pay the rent if the tenant is unable to do so.
This type of arrangement can provide landlords with some financial security, but it can also put a lot of pressure on tenants.
Guarantors are common when renting to students or young adults, however, they have become increasingly popular for all types of tenancies.
According to a recent report, the amount of landlords asking for a guarantor has risen by 36% in the last four years, while at the same time, rents have also reached a 13-year high.
For more information on this, please contact Tom Young on 023 8046 1254.