- A rent guarantor service normally costs between three and five weeks' rent, although Rentmigo's fee is usually between two weeks and one month's share of the rent.
- Professional rent guarantor services are designed for tenants who don't have anyone in the UK to be a guarantor for them.
- Using a professional guarantor service can be a more affordable option than paying a big chunk of rent upfront.
If you're trying to rent in the UK without a UK-based guarantor, paying for a professional guarantor service can be a great option.
Whether you're an international student, expat, freelancer or just don't have someone who can guarantee your rent, this guide explains what rent guarantor services cost, what you're paying for, and whether they're worth it.
If you're ready to secure your next home, you can sign up with Rentmigo today and get your rent guaranteed in just 48 hours!
What is a rent guarantor service?
A rent guarantor service is a company that acts as your guarantor if you don't have a family member or friend who can be one for you.
Many landlords ask tenants to provide a guarantor before they'll approve a tenancy.
Traditionally, this has meant having to find someone who lives in the UK, has a strong UK credit history and is financially able to cover the rent if you can't.
The problem is that not everyone has someone who fits the bill...that's where professional guarantor services come in.
Instead of asking a relative or friend to take on that responsibility for you, companies like Rentmigo act as your guarantor, giving landlords the reassurance they need while allowing you to move forward with your tenancy.
If you're new to the idea, you might also find our guide on how does a rent guarantor service work? helpful.
How much does a rent guarantor service cost?
Most rent guarantor services charge somewhere between three and five weeks' rent, although every company has its own pricing model.
Some companies charge annual fees that need renewing every year, others charge monthly subscriptions.
Rentmigo keeps things much simpler.
Our fee is normally between two weeks and one month's share of the rent, depending on your circumstances, and is never more than one month's rent.
That single payment covers up to three years from the start of your tenancy at that property, so there are no renewal fees if your tenancy continues during that period.
Once you're approved, your landlord gets the reassurance they're looking for, and you can focus on moving into your new home.
You can check your eligibility with Rentmigo today to receive your personalised quote.
What affects the cost of a rent guarantor service?
The amount you pay for a rent guarantor service usually depends on your rent, the property you're moving into and your application.
Most providers calculate their fee using factors like:
- Your monthly rent
- The length of your tenancy
- Your income and affordability
- Your employment or student status
- The level of guarantee being provided
For example, someone renting a room for £700 per month will generally pay less than someone renting a £2,000 apartment in central London.
That's why it's difficult to give one fixed price that applies to everyone.
With Rentmigo, your quote is tailored to you, so you'll know exactly what you'll pay before committing to anything.
Is paying for a guarantor cheaper than paying rent upfront?
For many tenants, yes, using a professional guarantor is a lot cheaper than tying up thousands of pounds in rent upfront.
Before the Renters' Rights Act came into play, international tenants without a UK guarantor were often asked to pay six or even twelve months' rent upfront.
If your rent was £1,500 per month, that could have meant finding £9,000 before you'd even moved in.
Since the Renters' Rights Act introduced limits on how many months tenants could pay for rent in advance, landlords have had to find new ways to protect themselves against the financial risks of letting a property.
Instead, many landlords are increasingly asking tenants to provide a guarantor instead. That creates a challenge for international students, expats and professionals moving to the UK.
Fortunately, it also creates an opportunity.
Rather than tying up thousands of pounds in rent, many tenants now choose to use a professional guarantor service like Rentmigo instead.
Who benefits most from a professional rent guarantor service?
Professional guarantor services are particularly useful for people who don't have anyone to act as a guarantor for them, even if they can comfortably afford the rent.
You may benefit from using Rentmigo if you are:
- An international student
- Moving to the UK for work
- An expat relocating to England
- Self-employed or freelance
- Building your UK credit history
- Unable to ask family or friends to act as your guarantor
Many financially responsible tenants just don't have someone in the UK who can legally guarantee their rent. At Rentmigo, we believe that doesn't mean they should miss out on great homes.
If any of these situations sound familiar, you may also find these guides useful:
- Rent Guarantor for International Students
- Rent Guarantor for Expat Workers
- Renting in the UK as an International Student
- Renting in the UK as an Expat
Why do people choose a professional guarantor instead of asking family?
Many tenants prefer using a professional guarantor because it means they don't have to ask family and friends.
Asking someone to become your guarantor is a big responsibility. If something unexpected happened during your tenancy, they could become legally responsible for covering your rent.
For many people, that's an uncomfortable conversation.
Using a professional guarantor means everyone knows exactly where they stand from the beginning.
It also makes life much easier if:
- Your parents live overseas
- Your family doesn't own property in the UK
- Your friends don't meet landlords' guarantor requirements
- You'd rather keep your finances independent
Why is Rentmigo different?
Rentmigo has been designed specifically with today's renters in mind, making it easier for good tenants to find homes without a traditional guarantor.
Rather than relying on outdated referencing rules, Rentmigo looks at your overall financial situation.
Our application is fully online, takes around 5 to 10 minutes to complete, and most applicants receive a decision quickly once we've received all the required documents.
Unlike some providers, our fee covers up to three years from the tenancy start date at that property.
With Rentmigo you'll get:
- A fully online application
- Fast eligibility checks
- No need for a family guarantor
- A one-off fee
- Cover for up to three years
- A service designed for international tenants, expats, freelancers and professionals new to the UK
Why do landlords accept professional guarantor services?
Professional guarantor services give landlords extra financial reassurance, making it easier for them to approve tenants who don't fit traditional referencing criteria.
From a landlord's perspective, using a professional guarantor can reduce the risk of rent arrears while allowing them to consider a much wider pool of tenants.
That's particularly important today.
Following the introduction of the Renters' Rights Act, landlords have become much more cautious about tenant referencing, especially where renters don't have UK credit history or a personal guarantor. This is mainly because it's becoming much harder for landlords to evict tenants, meaning they are looking for less risky options.
Professional guarantor services help make you feel like a less risky option for landlords.
If you're a landlord, you can also learn more about how Rentmigo supports property owners by visiting our 'How we work with landlords' page.
So, is a rent guarantor service worth the cost?
Yes, if you don't have a UK rent guarantor, paying for a rent guarantor service is definitely worth the cost.
Instead of losing out on your dream property, paying months of rent upfront, or asking friends and family to take on financial responsibility for you, you gain access to far more rental opportunities with an easy one-off fee.
For many tenants, that's money well spent.
At Rentmigo, we believe renting should be based on whether you can genuinely afford the property, not whether you happen to know someone in the UK who can act as your guarantor.
If you're ready to move forward with your rental application, check your eligibility with Rentmigo today and find out how we can help you secure your next home.
