Rental Guarantees: How They Help When You Find a Home

A rental guarantee may help you secure a tenancy if you do not have the financial security a landlord asks for. Usually, a municipality or another guarantor promises to compensate the landlord if rent is unpaid, subject to the agreement’s terms and limits.

A guarantee is not automatically a legal entitlement, and it does not make rent free or remove your responsibility to pay. Availability and eligibility vary, so check the details before agreeing to a lease.

What is a rental guarantee?

A rental guarantee is a form of financial security for a landlord. If you fail to pay rent, the guarantor may have to cover some or all of the resulting loss, as specified in the guarantee agreement. It can help an applicant who cannot meet a landlord’s usual requirements, such as having a permanent job or savings.

The guarantee is generally tied to a particular tenancy and may apply for a fixed period or up to a stated amount. Read the agreement to find out what it covers, how long it lasts, and how the landlord must make a claim. It may cover unpaid rent only, rather than every cost connected with a tenancy.

If the guarantor pays the landlord, you may still have to repay the guarantor. The effect depends on the agreement, so read it alongside the lease and ask for clarification in writing where needed.

Who can qualify for a municipal guarantee?

A municipal rental guarantee is an arrangement in which a municipality backs an applicant who is considered able to afford the rent but has difficulty obtaining a first-hand rental contract. Municipalities may offer guarantees as part of their housing work, but not all do. Eligibility rules, target groups and application procedures differ between municipalities.

A municipality might consider whether your income can cover the rent even though you do not meet a landlord’s usual criteria for employment, income history or security. Some schemes focus on households that face particular barriers to entering the rental market. Contact the municipality where you are looking for housing to confirm whether a scheme exists and whether you can apply.

Common eligibility requirements

The guarantor sets the requirements. An assessment may include whether you:

• have difficulty obtaining suitable rental housing without support
• can show income or other means to meet the rent
• provide information about your household finances, debts and housing situation
• have a landlord willing to accept the guarantee
• meet any application and follow-up requirements.

You may also be asked to look for housing independently first or to take part in budgeting or debt advice. Ask how payment defaults affect the assessment and which documents to provide. A guarantee does not necessarily replace the landlord’s own assessment of you as a tenant.

Is a guarantee an alternative to a deposit or guarantor?

Sometimes a guarantee can be used instead of a cash deposit or a private guarantor, but only if the landlord accepts it. The arrangements are different:

Arrangement	Who provides the security?	What to check
Rental guarantee	A municipality or another guarantor promises payment under an agreement	Duration, limit, covered costs and any repayment obligation
Deposit	The tenant pays an amount held under the agreed terms	How funds are held, permitted deductions and when the balance is returned
Private guarantor	An individual accepts liability under a guarantee undertaking	Scope and duration of the undertaking, and when the person can be asked to pay

Using a guarantee instead of a deposit may mean you do not have to pay a large amount upfront. But the guarantee may not be free, and it may not cover the same costs as a deposit. Check for fees and find out whether the guarantor can seek repayment if it pays the landlord.

A private guarantor is a person—often a relative—who accepts financial responsibility under an undertaking. A municipal guarantee instead relies on an organisation. Either arrangement can have serious financial consequences for the guarantor, so the precise commitment should be understood before anyone signs.

How to apply and avoid misunderstandings

Start by asking the relevant municipality whether it offers a rental guarantee and what criteria apply. For another type of guarantee, identify the provider and confirm that the landlord accepts it. You may need identification, information about income and housing costs, and supporting documents requested by the guarantor.

Before accepting a tenancy, compare the lease with the guarantee agreement. Check who and what the guarantee covers, the rent or property it applies to, when coverage begins and ends, and what happens if a claim is made. Keep copies of all documents and request written answers to questions.

Make a realistic household budget too. A guarantee addresses the landlord’s request for security; it is not general financial assistance for your monthly expenses. If you think you may struggle to pay rent, contact the landlord early. Municipal budget and debt advisers may also be able to help. For general guidance about tenant rights, contact Hyresgästföreningen.

Does a rental guarantee mean the municipality pays my rent?

No. It is primarily security for the landlord if rent is not paid, not a promise of ongoing financial support to the tenant. If the guarantor pays, you may still owe that amount under the agreement.

Can a landlord refuse a guarantee?

Yes. The landlord generally needs to accept the specific guarantee and its conditions. Ask before signing whether the proposed arrangement is acceptable.

Does a municipal guarantee work throughout Sweden?

No. Municipal schemes and conditions vary. Contact the municipality responsible for your application or the housing you are seeking.

Is there a fee for a rental guarantee?

That depends on the provider and the agreement. Check for fees, repayment obligations and other costs before accepting.