New Combined Deposit and Guarantor Product Simplifies Tenancy Management for London Landlords

What Landlords Need to Know About the New Combined Deposit and Guarantor Product

RentGuarantor, a provider of rent guarantee services, has partnered with mydeposits, one of the UK’s government-authorised tenancy deposit schemes, to offer a combined guarantor and deposit product. This integrated solution allows tenants to pay a single fee which covers both a guaranteed rent element and an insured deposit held by mydeposits until the tenancy ends.

Why This Matters

For landlords and letting agents, this product simplifies managing deposits and guarantors, which are often handled separately. Traditionally, securing a guarantor can delay tenancy progression, while deposit protection requires landlords to comply with strict regulations under authorised schemes such as mydeposits, which protect tenants’ deposits and avoid potential disputes.

By merging these elements, the new product:

• Facilitates quicker tenancy agreements by reducing administrative steps.
• Ensures deposits remain protected under an authorised scheme, meeting legal obligations.
• Offers landlords a guaranteed rent component, potentially reducing rent arrears risk.

Practical Implications for Different Landlord Profiles

• Single-unit landlords: Reduces time spent vetting guarantors and managing deposit protection, accelerating tenant move-in and reducing void periods.
• HMO landlords: Streamlines administration and improves compliance across multiple tenancies.
• Portfolio landlords and agents: Standardises deposit and guarantor processes, simplifying compliance monitoring and tenant onboarding.
• Accidental landlords: Simplifies tenancy compliance without needing separate guarantor agreements.

Compliance and Operational Considerations

Landlords must continue ensuring all deposits are protected with an authorised scheme—in this case, mydeposits. Familiarity with the deposit dispute resolution process remains essential, as disputes can still arise despite the guarantee element.

Letting agents should be fully briefed on the features and benefits of this combined product to promote it effectively, speeding tenancy progression and maintaining compliance.

Tenancy agreement templates and internal procedures should be updated to include:

• Clear explanations of tenant obligations and guarantee terms.
• Details on the deposit protection scheme used.
• Procedures for handling disputes or claims under the scheme.

Next Steps for Landlords and Agents

1. Review product details: Obtain full information from RentGuarantor and mydeposits on features and costs.
2. Train staff: Ensure agents understand how to explain and administer the combined product.
3. Update documentation: Amend tenancy agreements and compliance checklists accordingly.
4. Monitor regulatory changes: Stay informed of developments in deposit protection and guarantor services.

How Rentals & Sales Can Support You

Our team offers portfolio reviews and compliance audits tailored to your landlord profile, helping assess suitability of this combined product. We also provide updated tenancy agreement templates and training sessions to streamline tenancy management.

Compliance Disclaimer: This article is for informational purposes and does not constitute legal advice. Landlords should consult qualified legal professionals or compliance specialists to ensure adherence to current regulations.