RentGuarantor (RGG), a provider of rent guarantee services to tenants including students, benefit claimants and retirees, has signed an agreement with leading rental portal The Lettings Hub. The deal is RentGuarantor’s fifth strategic contract signed this year, alongside 35 partnerships signed with letting agents in the first half of 2023.
The three-year deal will see RentGuarantor offer a company guarantor option to tenants of The Lettings Hub and will be integrated into the latter’s BOX property management software platform.
RentGuarantor’s service allows less-creditworthy tenants to pay for a rent guarantee rather than seek a guarantee from family. Of the 180,000 references completed by The Lettings Hub each year around 12% require a guarantor, and research cited by RentGuarantor suggests nearly two-fifths of tenants would rather pay for a rent guarantee than ask family.
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With rents soaring and rising interest rates and inflation putting pressure on landlords, demand for rent guarantee services is rising, as evidenced by RentGuarantor’s half year results which saw sales climb 79%.
Although the company – which moved up to the Apex segment of Aquis in March – remains loss-making, that’s largely the result of investment in its technology platform, and significant progress it’s made signing partnerships should see it narrow as more distressed renters sign up to use its service.