CEO of RentGuarantor, Paul Foy, asks how the property industry can seek to replicate certainty of rental income and work together.
10th Apr 20260 109 3 minutes read Paul Foy, CEO, RentGuarantor
For agents, the abolition of rent in advance is arguably one of the most challenging aspects of the Renters’ Rights Act (RRA). Money in the bank provided clarity and confidence if a tenant’s ability to pay became a problem later. Financial risk was minimised, reassuring landlord clients, and the surety enabled agents to work efficiently and smoothly, keeping business moving at pace.
How can we, as an industry, seek to replicate this certainty of income as we move forwards and ensure that landlords – especially smaller portfolio holders – can effectively navigate new regulation?
Whatever your professional (or personal) view of the RRA, I think it’s fair to say that it has motivated the sector to get creative in finding workable, compliant solutions that meet the needs of tenants and make life easier for landlords. An example of this innovation in action? Our newly-announced partnership with Mydeposits.
Many agents will know that RentGuarantor’s core service does what it says on the tin. It protects everyone involved in a tenancy against the unexpected, such as a cut in work hours, or an unexpected bill. We step in, make the payment on behalf of the tenant and work constructively with them to agree a payment plan.
Innovative alternativesNow, in collaboration with Mydeposits – which represents around 400,000 landlords and protects more than £1.3bn of tenant deposits in the private rented sector, and is one of the three government authorised deposit protection schemes in the UK – we have developed a rent deposit service that will sit alongside our professional rent guarantor service to simplify the lettings process even further for everyone involved.
Under the new agreement, which is due to launch in the early summer, RentGuarantor’s tenant customers as well as our landlord and agent partners will be able to access the Mydeposits scheme via our website. Here, tenants can take out a combined guarantor and deposit package product for one combined fee. Our proprietary platform will enable a swift application process that aligns both services.
The package will mean that a deposit is agreed at the start of the tenancy, however the money will remain with the renter until the end of the tenancy when any agreed deductions are released to the landlord. If there is a dispute, a resolution process will determine what amount should be paid. The deposit amount is insured under Mydeposits’ protection scheme, while rent payments will come from RentGuarantor if they are needed.
SecurityThis partnership will provide both tenants and landlords with the security of a government-approved deposit protection scheme and a professional guarantor service. It will unlock more tenancies and safeguard against rent arrears.
Crucially, landlords will know that the relevant deposit amount and their rent payments are fully backed without having to pay a fee, while tenants won’t have to wait for the release of a deposit payment, freeing up cash. For agents, tenancy progression is swifter and more resilient.
Under the partnership, the new service offers a pragmatic approach to deposit and guarantor management. It aligns with upcoming regulatory changes and provides a robust alternative to previously relied upon methods, while facilitating long-term, efficient and trusting relationships between agent, landlord and tenant.
Financial reassuranceWe’ve worked with more than 1,800 lettings agents since RentGuarantor was established in 2018, and have supported thousands of tenants in that time. These partnerships have always provided the financial reassurance that landlords need and have helped thousands of people access a new rented home, offering even more of a lifeline when other ways of securing a tenancy are prohibited.
Collaboration has always been a key driver of innovation at RentGuarantor and we will continue to look for ways to elevate our services and enhance our processes. We believe it is in working together that we can bring immense opportunities for agents, especially those willing to think outside the box.
TagsMYDEPOSITS rent guarantee insurance RentGuarantor 10th Apr 20260 109 3 minutes read Paul Foy, CEO, RentGuarantor Share Facebook X LinkedIn Share via Email