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TODAY'S OTHER NEWS

‘Deposits often reduced’ if rent guarantor provided, claims company

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.

Poll: Do you agree - can a rent guarantor lead to a reduced deposit?

PLACE YOUR VOTE BELOW

  • S l
    • S l
    • 15 May 2019 11:31 AM

    The claim provider obviously have no clue what he is talking about. Its not a deposit. Because they are foreigner, nobody in their right mind would take them to court in their country which would comes up to tens of thousands for rent arrears or damages caused or breach of contract. Hence the upfront payment NOT a deposit but rent in advance. Come on, stop making ridiculous points that have no substance and stop this scare mongering amongst tenant and confuse the MPs. They lack the inside knowledge as it is in the letting industry making problematic laws without you adding salt to it.

  • Jeremy Robinson


    You raise an interesting point – it can be complex renting to international students and many landlords worry about the challenge of tackling rent arrears, should the student fall behind in their payments and then return overseas. As quoted above, “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.” This is why tenant guarantor services can be so valuable to UK landlords.

    We shouldn’t overlook the important contribution that international students make to the UK. There are currently 458,490 foreign students attending UK universities, all of them contributing to the economy through tuition fees, rent and living expenses. The UK is the second most popular study destination worldwide and enjoys a superb reputation for its academic prowess. Tenant guarantor services can help to facilitate the continuation of that, as well as international working professionals.

    S l
    • S l
    • 18 May 2019 23:51 PM

    you seem to overlook the fact that quite a number of them committed fraud in putting false name on the utility bills or even refused to pay the bills after using it for a year and then fly back home.

     
  • Jeremy Robinson

    I can’t comment on the possible behaviour of some individuals I’m afraid only to reiterate that tenant guarantor services allow landlords to let to international tenants by signing and adhering to the guarantor agreement, thus protecting the landlord.

  • Paul Barrett

    Providing bills aren't in the LL name then a LL doesn't have to concern hinself if tenants don't pay utilities.
    Providing the LL contacts the utilities to advise of who us now responsible for bills then the LL need not concern himself.
    There would however be an issue if through failire to pay bills PAYG meters were installed.
    This problem won't exist with the roll out of smart meters which can be converted to PAYG at the click of a mouse!

    S l
    • S l
    • 20 May 2019 11:26 AM

    unfortunately you failed to recognise the ways of rogue tenants. Despite informing the utility companies, the tenant changed the name to landlord's names which will go undetected until they moved out and bills came through with thousands owing.

     
  • Paul Barrett

    No what you do as the LL is to advise the utility company that they are not to change names until they contact the LL.
    If the utility company does not contact the LL and it is subsequently discovered that tenants have fraudulently changed the name for the LL then that is down to the utility company.
    No way will the LL be held liable.
    I always give my details to the utility companies.
    I check periodically that the same energy company is being used.
    I require tenants to advise of any change to utilty company.
    I have caught out fraudster tenants like this.
    Never trust any tenant.
    Always verify

    S l
    • S l
    • 20 May 2019 12:12 PM

    done that and requirement is written in contract. still happened.

     
  • icon

    Regular Inspections and sight of recent utility bill will keep you on top.

  • S l
    • S l
    • 20 May 2019 22:19 PM

    had regular inspection and had to give them 24 hours notice for a 3 monthly check. unfortunately, they hide the bills and despite repeated request for bills, they just ignore me and failed to provide the bills. when i call utility bills, i gave them my name and ask for the bills for the rented property but they told me because i dont live there, they cannot talk to me but they didnt tell me the bills are in my name either. very frustrating

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