A rental services provider has issued a stark warning to students and parents about the hidden risks of joint tenancy agreements, as new research reveals widespread confusion over rental liabilities.
Housing Hand found that two-thirds of renters in shared homes do not understand what happens if one housemate fails to pay rent, leaving others potentially liable for the full amount.
The company's Understanding Renters in 2025 report, based on a survey of 1,700 private tenants, uncovered significant gaps in awareness.
Just 33% of those living in shared accommodation said they understood the consequences of a housemate defaulting, while only 44% knew what would happen if tenants wanted to move out at different times.
Even more concerning, 22% of respondents were unsure whether their tenancy was joint or individual, and nearly one in three could not explain the difference between the two.
Student signs a joint and several contract
Housing Hand's managing director, Graham Hayward, said the lack of understanding could have serious financial implications.
He explained: "When a student signs a joint and several contract, which is standard for a house share, they often don't realise quite what they're taking on.
"A joint and several contract means that, if one housemate fails to pay their rent, the other housemates become liable for their share."
He added: "A student on a 12-month contract paying £500 per month for a room in a house of three could face a total liability of £18,000.
"Few students realise that when they sign on the dotted line."
Significant number of drop outs
The firm says that around 4% to 7% of full-time undergraduates drop out during their first year, according to government figures.
That's a scenario that can leave those sharing a house unexpectedly on the hook for unpaid rent.
However, Mr Hayward also warns that parents and guardians acting as guarantors are often equally unaware of the risks.
He said: "The situation for personal guarantors, usually a parent, relative, guardian or friend of the renter, is even worse.
"While they may stand ready to cover any rent that the tenant can't pay, they can accidentally find themselves also guaranteeing to cover the rent of complete strangers – all due to a joint and several clause in the tenancy."
Protect against non-payment
To address this growing problem, Housing Hand offers the 'Only My Share' service, designed to protect students and guarantors from the financial fallout of a housemate's non-payment.
The scheme, which has been running for more than eight years, acts as a guarantor for any unpaid rent caused by others in the household.
The service steps in to manage disputes directly with landlords, shielding users from stress and potential debt.
Mr Hayward said: "The student can focus on their studies and on enjoying their university experience, rather than the stress of being liable for somebody else's rent and the time it takes to sort such matters out."
Student landlord tenancy risks
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords, the message from Housing Hand's findings is clear: awareness of joint tenancy risks isn't just a tenant issue, it's a landlord one too.
"Confusion about shared rental liabilities can quickly escalate into missed payments, disputes or even legal wrangles that damage both income and relationships."
He added: "Lots of student landlords will often assume that everyone in a house share understands their obligations.
"The reality is most don't. And when one tenant fails to pay, the entire household, and sometimes the landlord, ends up caught in the fallout."
