As the dust settles on the Renters’ Rights Act, lettings agents are looking for new, compliant ways to amplify their customer service offering and support their renters.

A range of services are growing in popularity to secure tenancies, not least professional rent guarantor provision. It helps good tenants who can afford the rent but don’t quite meet the right criteria on paper, including students, self-employed people or those on benefits, or retirees. For agents, offering guidance to renters about these services illustrates your intent to go above and beyond – to unlock a tenancy which might be impossible otherwise. Your recommendations can be invaluable.

It is essential however that you promote consumer choice and fairness. Ultimately, the decision to use a service to secure a tenancy sits entirely with the renter, and it is up to the landlord to agree that it meets their requirements.

So how can agents remain compliant and responsible, and why is it so important?

Why does customer choice matter?

We believe that agencies who do not offer a choice of rent guarantor options to prospective tenants could find themselves in breach of the Tenant Fees Act.

This could apply to situations where agencies recommend one, single choice of provider or service. It could also apply if a prospective tenant brings in their own service provider and – for reasons that suit the agent rather than the renter or the landlord – are declined.

Empowering tenants with objective, transparent information builds trust, creating opportunities for the future and avoiding any perception of bias or that products are recommended solely for commercial purposes. It’s also good for your business. A range of options that best suit the requirements of the landlord and the tenancy – and the renter’s own risk profile – will more likely result in a successful application.

What makes a recommendation fair?

If a rent guarantor is required to secure a tenancy, then the renter should have the option of either a personal contact (who meets the criteria) or a professional provider. If they need or want to use a professional guarantor service, then a choice of suitable providers should be offered.

The renter must be allowed to research and choose their own service provider independently; there should be no pressure to choose from an approved shortlist and you need to have valid reasons for not accepting a tenant’s choice of service provider.

• Do not suggest that any one provider is compulsory, even indirectly. Offer a shortlist of suitable and qualified providers that fulfil the needs of the tenancy
• Provide clear, simple and comparable information on any service provider you are recommending. Help the renter understand that they are free to choose
• Be honest about any commercial arrangements you have in place with any provider
• Guide, don’t persuade!

Doing your due diligence

Due diligence is crucial to protect your clients and customers, whether you are making a recommendation or assessing the suitability of a service provider brought forward by a prospective tenant.Tenants should be encouraged to take time and care to understand the product or service they are purchasing, making sure it is fit for purpose.

Agents meanwhile, should do their own research to understand which providers they are happy to accept (or not), and the justifiable reasons why. Does the level of cover align comfortably with your responsibilities to landlords and tenants? It goes without saying that agency preference shouldn’t be a factor simply for commercial benefit or for convenience.

Too often, we see insurance products marketed as ‘guarantees’, which can blur the distinction between insurance and professional guarantor services. In some cases, guarantor products can appear to operate more like insurance policies. This is particularly important given that insurance is a regulated financial service, whereas professional rent guarantor services are not. These products are not one and the same.

RentGuarantor has been operating since 2018 and has backed thousands of tenancies. RentGuarantor is the only provider listed on the Alternative Invest Market (AIM), part of the London Stock Exchange, and as such, is subject to rigorous governance and compliance.

Supporting high standards

We support high standards for customers and strong, people-led relationships. We are proud platinum sponsors of the ESTAS for the next three years and we were also winners of the Best Professional Guarantor award in 2025.

This ethos is reflected in our partnerships with lettings agents across the UK, through the provision of an efficient and effective professional guarantor service that elevates and amplifies the customer experience while staying compliant.

Our partnership agreements actively encourage our partners to offer choice; we provide the guidance and marketing support on how to do this effectively.