Editor's note: This brief was summarised by The Property AI Team from a report by Letting Agent Today. Read the original article for full details.
Renters Rights Act Drives 50% Rise in Rent Guarantor Applications
The first three months of the Renters Rights Act have seen a 50% rise in rent guarantor applications to one supplier, according to a report by Letting Agent Today.
The surge has been described as "phenomenal" and reflects landlords adjusting to the new rules that came into force under the Act.
Why guarantors are in demand
Under the Renters Rights Act, most landlords can no longer request or take more than one month's rent upfront. Instead, they are asking renters to provide guarantors to manage the financial risk of new tenancies.
Landlords are also relying on rent guarantor firms to manage this process, the report notes.
What this means for agents and clerks
For letting agents, the shift means guarantor checks are likely to become a routine part of tenancy applications now the Act is in force. Inventory clerks may also notice the practical effects as landlords look for other ways to protect rental income at the start of new tenancies.
Source: Letting Agent Today