Rent guarantor applications rise 50% since RRA
Summary
A rental services provider reports a 50% increase in rent guarantor applications in the first 100 days after the Renters’ Rights Act came into force. The article says landlords are adapting to limits on upfront rent by using guarantors more often, while also relying on guarantor firms to carry out KYC-related checks.
Why it matters
Residential property surveyors involved in lettings, landlord advice or portfolio risk assessment should note the shift in tenant referencing and security arrangements. The change may affect affordability assessments, tenancy setup processes and the way landlords manage compliance and payment risk.
Key points
- Rent guarantor applications rose 50% in the first 100 days after the Renters’ Rights Act.
- Landlords can no longer request or take more than one month’s rent upfront, according to the article.
- Guarantor firms are being used to support Know Your Customer checks, including sanctions, PEP and source-of-income screening.
- Housing Hand says missed-rent claims have not increased materially despite the higher demand.
- The company reports around £7m in payouts over five years, averaging about £1.5m annually.
Organisations:
Property Investor Today, Housing Hand
Regulations:
Renters’ Rights Act, Know Your Customer
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