Guarantor companies

Hi, if you fail the credit check, due to a low score and you require a guarantor, do landlords accept guarantor companies, that cover missed rent and damages etc? Some don’t seem to and I don’t know why not, they are probably a safer bet than having an individual as a guarantor.

There is a good company that I have found who I would pay £20 a month to and if anything happened they would cover missed rent/damages etc to the landlord.

I personally wouldn’t. They tend to have lots of caveats about paying out which is why they look cheap. It can take 12 months to evict a non paying tenant which with eviction costs and some damage could easily result in a liability of £10k plus. Hard to see why a company would be willing to cover this at £20 pm for someone with a poor credit rating if they intend to pay out…

I prefer a personal guarantor and would be a bit more flexible on the requirements dependent on your own position.

What if the tenant stopped paying for the guarantor services of a company? Maybe this could be a factor.