The abolition of rent in advance is arguably one of the most challenging aspects of the Renters’ Rights Act for landlords. Against a backdrop of new regulatory pressure, it has never been more crucial to keep properties occupied and voids to a minimum; the rent needs to be paid.
Money in the bank provided the necessary clarity and confidence, regardless of whether a tenant’s ability to pay became a problem later. Renter demand is as high as it has ever been – which brings plenty of opportunity for landlords willing think outside the box.
How can landlords replicate the certainty of income we used to be able to rely on, while remaining compliant with the new rules?
An empty property means no rent payment but at the same time, you cannot afford to compromise on risk. Striking the right balance becomes ever harder when applicants fall outside standard referencing criteria, even when they are otherwise suitable.
While there is no definite figure and it will differ depending on the source, the percentage of tenants who needed a guarantor (pre-Renters’ Rights Act) to secure a tenancy likely fell somewhere between 15-30%. In reality though, this number is probably much bigger; it doesn’t include people who wouldn’t even reach the reference stage.
Look at how you can widen your pool of potential tenants. A professional rent guarantor service provides certainty of income for renters who might have previous been overlooked because they weren’t the right fit on paper; good tenants who wouldn’t necessarily pass a traditional round of reference checks. This includes international students without a personal UK guarantor, as well as self-employed workers, people in receipt of benefits and retirees.
A rent guarantor provides a practical way to moderate the risk of income disruption when unexpected events occur. Even comprehensive tenant referencing only provides a snapshot of past behaviour. An uncertain economy, rising living costs or changes to personal circumstances can all affect tenants’ ability to pay while landlords remain responsible for mortgage payments and regulatory compliance throughout. A professional rent guarantor service ensures that rental payments continue, reducing the impact of arrears and financial strain, and keeping business going.
It’s one thing to secure a tenancy, but quite another to keep the tenancy in place for as long as possible, especially with the certainty of fixed term contracts now a thing of the past.
Keeping your property occupied is probably the number one goal for landlords; RentGuarantor provides practical support when tenants fall behind on rent. We support open communication with renters to overcome challenges and wherever possible, keep the tenancy going – while protecting the landlord’s position. With a professional rent guarantor in place, these conversations can take place without immediate financial pressure affecting decision making.
If the worst does happen, RentGuarantor will handle court applications and eviction costs in the case of arrears, ensuring the process is carried out efficiently and promptly.
Instead of chasing alternative documentation or applying case-by-case exceptions, a guarantor can offer a clear route forward, providing reassurance to landlords while allowing the tenancy to proceed without unnecessary delay. This approach reduces decision time and helps your agents move from offer agreed to contract signed more efficiently.
A professional rent guarantor service cannot eliminate all risk (and really, nothing can), but the service can reduce exposure to income loss. Make sure your chosen provider has the financial backing and legal support to deliver when things go wrong. RentGuarantor is the only provider listed on AIM and as such, is subject to rigorous governance and compliance. If your tenant defaults on rent, you’ll want a resolution as swiftly as possible to keep up your cashflow, but you’ll also need to ensure you are covered from a legal standpoint if needed.
We’ve worked with more than 1900 lettings agents since RentGuarantor was established in 2018, and have supported thousands of tenants in that time. Uncertainty can often feel like the only certainty in the current climate; whether you are a landlord investing for the long-term or supplementing your month-to-month income now, a reliable rental stream is fundamental to success.
