A rent guarantor provider claims that deposits which prospective tenants are required to pay are often reduced if such a service is used.
Housing Hand, citing figures from the Tenancy Deposit Scheme, says more than 40 per cent of deposits for private rented homes are for more than a month's rent.
“For those who don't fit the profile of a 'typical' renter - students, first time renters, care leavers, professionals coming to work in the UK from overseas, for example - deposit requirements can quickly spiral. It's not uncommon for landlords to ask for six or even 12 months' rent as a deposit or a down payment in such situations, which is beyond the reach of many people” claims Jeremy Robinson, Housing Hand’s group managing director.
He then goes on to say: “The requirement to pay such large amounts upfront is often dropped if the renter can provide a guarantor for their rent.”
Housing Hand - which charges tenants a one-off fee from £295 upwards - says it liaises with the landlord, letting agent or university to fulfil the guarantor requirements. “The individual can thus rent their home without having to find thousands of pounds to use as a deposit” it claims.
The firm has processed over 70,000 applicants from 141 countries and has covered more than £120m in rent.