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Rent Guarantor Demonstration - Coggle Diagram
Rent Guarantor Demonstration
The offer
Do not sell insurance, but would act as a 'parent'
Business is insured by Loyds of London, and every claim is underwritten to the maxiumum value of £25,000 - anything above has to be approved
Coping strategies in place by Rent Guarantor to ensure the payment of the rent
Looking at including the deposit as part of the guarantee, paid over 10 instalments (e.g. 500 deposit paid over 10 weeks of £50 instalments)
Q: How long does the guarantee last? Would they have to reapply if finding a new property? A: The guarantee last for 12 months.
Process
Loans are pre-approved
Loan can be processed by RG, Agent or us.
RG can provide
Authorisation
Less than 6% of applications are declined
Can create an account on Website so we can process our own loans on behalf of tenants (usually used by estate agents?)
Customers with active rent arrears will be declined, but will support historic arrears. Other debts will be graded but a guarantee will not automatically be declined
I.D. must be photo ID
RG review affordability based on value of rent and income. A model works out what is affordable.
Seeking ASTs rather than licences
Agreement
Tripartite arrangement between tenant, landlord and agent?
Q: Do you require any agreement with LAs? Is there an on-going responsibility?
Just have to be in receipt of UC, not the housing element.
Costs
Fee is only charged at point property found and accepted
How is the fee processed?
Fee costs around 3-3.5 weeks rent
Tenant does not pay anything up-front
Timeframe
Applications processed within 24 hours
Our input when the guarantor is required
Contact point if needed
No financial risk
The LA partnership
What other LAs do you work with?
Broad range of LAs, including portsmoth and southend
RG want to put out social media posts about how they would be working in our areas.
What does your support in on-boarding landlords look like?
Client group
People on benefits
Students
Employment
Next steps:
register an account to see the website
contact rent guarantor to arrange training