In the current economic climate many landlords are turning to Rent Guarantee Agreements to ensure regular rental payments.

A Rent Guarantee Agreement is an agreement between a landlord and a guarantor whereby the guarantor agrees to pay the landlord the rent if the tenant defaults and also agrees to reimburse the landlord for any loss or expense incurred by him as a result of any failure by the tenant to pay the rent.

The agreement is supplemental to a Tenancy Agreement and can be drawn up at the same time as the Tenancy Agreement or at a later date, after the tenancy has commenced.