Guarantor Agreement Template: Why It Must Be a Deed and What to Include

A guarantor agreement is your fallback when a tenant's income, credit history, or rental track record isn't strong enough on its own. Someone — usually a parent or family member — agrees to cover the tenant's obligations if they default.

But here's what most free templates get wrong: a guarantor agreement must be executed as a deed to be enforceable.

This isn't a technicality. It's fundamental contract law, and getting it wrong means your "guarantee" is worthless when you actually need it.

Why it must be a deed

For a contract to be binding under English law, each party must receive something of value — this is called "consideration." In a tenancy agreement, the landlord provides the property and the tenant provides rent. Both sides give and receive.

A guarantor receives nothing. They're making a promise to pay someone else's debts, but they get no benefit in return. Without consideration, a simple contract (even a signed one) is not enforceable.

The solution is to execute the agreement as a deed. A deed is binding without consideration — it derives its legal force from the formality of its execution rather than from an exchange of value. Under Section 1 of the Law of Property (Miscellaneous Provisions) Act 1989, a deed must:

1. Be clearly described as a deed — the document must make clear on its face that it is intended to be a deed. Use wording like "This agreement is executed as a deed" or "Signed as a deed by..."
2. Be signed by the guarantor in the presence of a witness
3. Be witnessed — the witness must sign and provide their name and address
4. Be delivered — this usually happens automatically at the point of signing, but can be explicitly stated

If any of these elements is missing, the document is not a deed — and without consideration flowing to the guarantor, it's not an enforceable contract either. A surprising number of guarantor templates available online are simple contracts that would fail this test.

What the agreement should include

A properly drafted guarantor deed covers:

Parties and property

• Landlord: full name and address
• Tenant: full name and address at the property
• Guarantor: full name and current address
• Property: full address of the rented property
• Tenancy details: start date, rent amount, payment frequency

The guarantee itself

The core clause states that the guarantor guarantees the tenant's obligations under the tenancy agreement. Be specific about which obligations:

• Rent payments — this is the primary purpose in most cases
• Damage beyond fair wear and tear — liability for the cost of repairing tenant damage, as evidenced by the move-in inventory compared to the checkout report
• Other tenancy obligations — cleaning, returning keys, giving proper notice. List them explicitly rather than using vague "all obligations" language

The more specific the scope, the harder it is for the guarantor to dispute a claim later. Conversely, an overly broad guarantee ("all liabilities howsoever arising") may be challenged as unreasonable.

Liability cap

Set a maximum liability figure. This protects the guarantor from unlimited exposure and makes the agreement fairer — which matters if enforceability is ever tested in court.

Common approaches:

• A fixed sum (e.g., "not exceeding £5,000")
• A multiple of monthly rent (e.g., "not exceeding six months' rent")
• The full rent for the duration of the tenancy (for higher-risk tenancies)

An uncapped guarantee isn't automatically unenforceable, but courts are more sympathetic to guarantors who can show they didn't understand the extent of their liability. A clear cap removes that argument.

Duration

Specify when the guarantee starts and ends:

• Start: usually the tenancy commencement date
• End: usually when the tenancy ends and all obligations have been settled (including any deposit deductions). Be explicit — "The guarantee shall remain in force for the duration of the tenancy and for a period of [X months] after the tenancy ends, to cover any outstanding obligations"

Since the Renters' Rights Act 2025 abolished fixed-term tenancies in England (all tenancies have been periodic since 1 May 2026), the guarantee should be drafted to cover an open-ended periodic tenancy. Don't reference a fixed term or an end date — the tenancy continues until the tenant gives two months' notice or the landlord obtains a possession order.

This is important: a guarantee that says "for the duration of the twelve-month fixed term" becomes ambiguous when fixed terms no longer exist. Draft for periodic tenancies explicitly.

Notice and claims procedure

Include a clause requiring you to notify the guarantor within a reasonable time (e.g., 14 days) if the tenant defaults on rent. This isn't strictly required for enforceability, but:

• It's fair to the guarantor — they shouldn't discover months of arrears have accumulated without warning
• Courts look more favourably on landlords who acted reasonably
• Early notification gives the guarantor the chance to pressure the tenant to pay, which often resolves the situation without a formal claim

Also specify how you'll make a claim: in writing, with details of the amount owed and the obligation that's been breached.

Independent legal advice

Include a statement confirming the guarantor has been given the opportunity to seek independent legal advice before signing. Whether they actually take that advice is their choice, but the statement shows you didn't pressure them into signing something they didn't understand.

How to execute it correctly

The execution process for a deed is more formal than a simple contract:

1. Print two copies of the completed agreement
2. The guarantor signs in the presence of an independent witness (not the tenant, not you). The signature block should read: "Signed as a deed by [Guarantor Name] in the presence of:" followed by the witness signature, printed name, and address
3. The witness signs and provides their full name and address
4. The landlord signs (also witnessed, though this is less critical since you're receiving the benefit, not giving it)
5. Date it — all parties sign on the same date or the dates are noted
6. Exchange copies — the guarantor gets a copy, you keep the original, and the tenant should receive a copy for their records

Do not get the tenant to witness the guarantor's signature. The witness should be independent — a friend, colleague, or neighbour of the guarantor is fine.

Checking the guarantor

Before accepting a guarantor, verify they can actually cover the obligations if needed:

• Proof of income: payslips or self-employment accounts showing sufficient income to cover the guaranteed amount on top of their own commitments
• Proof of identity: passport or driving licence
• Proof of address: utility bill or bank statement at their stated address
• Credit check (optional but recommended): a guarantor with significant existing debt may not be able to pay when called upon

A guarantor who is themselves financially precarious defeats the purpose entirely. The point is that they're a reliable backup — verify that before accepting.

When the tenant defaults

If the tenant misses rent:

1. Contact the tenant first — give them a reasonable opportunity to pay (7-14 days is typical). Document the communication in writing
2. Notify the guarantor — inform them in writing that the tenant has defaulted, the amount owed, and the deadline for payment. Reference the specific clause in the guarantee deed
3. Give the guarantor time to pay — typically 14 days from notification
4. If unpaid, pursue formally — a letter before action, then county court proceedings if necessary. The deed is your evidence

Whether you must pursue the tenant before claiming from the guarantor depends on how the guarantee is drafted. If it's a primary guarantee (the guarantor promises to pay "as principal debtor"), you can claim directly from the guarantor without first exhausting remedies against the tenant. If it's a secondary guarantee (the guarantor promises to pay "if the tenant fails to"), you should demonstrate you've attempted recovery from the tenant first. Most well-drafted landlord guarantees use primary obligation language.

The Renters' Rights Act 2025 and guarantors

The RRA does not contain any specific provisions about guarantor agreements. The rules governing guarantees are found in general contract law, the Law of Property (Miscellaneous Provisions) Act 1989, and the Statute of Frauds 1677 (which requires guarantees to be evidenced in writing).

What the RRA does change is the tenancy structure. Since all tenancies in England became periodic from 1 May 2026:

• Guarantees should not reference fixed terms
• The guarantee duration should be tied to the periodic tenancy's lifespan, not a fixed end date
• If you're updating your tenancy agreement for the RRA, update your guarantor agreement template at the same time

Generate a compliant guarantor agreement with DocuTenant

DocuTenant's Guarantor Agreement template generates a properly formatted deed — with the correct execution blocks, witness provisions, liability cap, and duration clauses drafted for periodic tenancies. Fill in the parties, the scope of the guarantee, and the liability limit, and download as PDF or DOCX ready for signing.

It's part of the complete set of documents for starting a new tenancy — and the one document that needs to be executed correctly as a deed to have any legal force at all.

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This article is for general guidance only and does not constitute legal advice. For specific legal situations, consult a qualified property solicitor.