Understandably, one of the biggest fears for landlords when renting out their property is the potential risk of costs if a tenant fails to pay rent or cover expenses incurred for damages in the duration of their tenancy. Luckily, rent guarantor services like Housing Hand are here to provide a solution to help prevent landlords from standing surety to rental payments and other tenancy obligations.
There are a multitude of reasons why a landlord may feel the need to request that a prospective tenant provides a rent guarantor, one of the most current being the effects of the Coronavirus pandemic causing financial uncertainty across the country. Other prime examples are if a tenant has lived abroad for a while and returned to their home country, hasn’t borrowed money or used credit cards/has a low credit score, or are a student/in a job with low earnings.
The process of making this request can seem incredibly daunting and lengthy. This can also cause difficulty for the tenant, as finding an approved guarantor that is willing to be financially liable can prove challenging. A personal rent guarantor for a tenant would need to pass meticulous checks and meet specific requirements. Examples of these include ensuring that they are UK-based, have a good credit score, and earn a certain amount of income. In this circumstance, a rent guarantor service is the perfect solution to ensure peace of mind for both parties and minimise losses for landlords if things go wrong. We’ve gathered five ways that as a rent guarantor service, Housing Hand can help landlords:
1. It helps to streamline the rental process
By facilitating the entire rental process between the landlord and the tenant, we streamline it and do the difficult bits, so you don’t have to.
2. Landlords won’t lose any rent
At no added cost to the landlord, we eliminate the risk of rent loss completely, meaning that both parties are covered. When tenants choose to use us, landlords are guaranteed the full rent obligation under the tenancy agreement.
3. Help with finding new tenants
Our free house finder service will help you to fill rooms quickly and find replacement tenants, meaning that landlords are not left out of pocket.
4. Increased occupancy
By using the free house finder service combined with Housing Hand we are able to provide Landlords with a larger pool of creditworthy applicants, increasing the chances of acquiring an occupant.
5. Your disputes will be resolved
By acting as a guarantor, Housing Hand is happy to mediate any disputes and ensure that any issues are resolved quickly, meaning that the stress and hassles are taken off of the landlord’s plate.
How does a rent guarantor service like Housing Hand work for landlords?
At Housing Hand, we work closely with landlords and act as their UK-based guarantor. If the landlord has a prospective tenant who requires a guarantor to rent, they simply need to point them in the direction of our service. After confirming they are eligible, they’ll receive a quote for the rent guarantor service in minutes. The service is completely free for landlords, and the one-off fee incurred for tenants at the beginning of their tenancy is affordable, and can be paid by splitting the cost out over a period of months if necessary.
Alongside making the process of finding and occupying a new tenant incredibly easy, Landlords can also have peace of mind that Housing Hand is bound for a fixed term of the tenancy so there is no backing out. Covering all customer’s tenant liabilities that are detailed in the tenancy agreement, Housing Hand’s guarantee makes sure that if a tenant defaults on something, landlords are able to invoice the details and expect their payment within 28 days. This in turn means that landlords will no longer need to turn away valid tenants due to a lack of supplying a qualifying UK-based guarantor. It also guarantees stability for tenants, resulting in a winning solution for both parties.
If you are a landlord renting a property and are looking to let to students or working professionals who may be eligible to use the Housing Hand service, get in contact. Book in a chat with a member of our team here to find out more, or point the letting agent or tenant towards our service. Alternatively, our knowledge base has plenty of information to answer frequently asked questions.