Property management platform Concurrent from Sturents has partnered with guarantor waiver service Leap to offer landlords protection against financial risks associated with the Renters’ Rights Bill.
Leap’s service removes the need for tenants to nominate a guarantor when completing their booking, as Leap’s costs are incorporated into the monthly rental installments charged by landlords.
As a result landlords can market ‘no guarantor required’ tenancies, and retain the benefits that a guarantor would traditionally offer.
Concurrent said the solution addresses the ban on upfront rental payments and extended eviction thresholds.
Tom Walker, StuRents and Concurrent’s co-founder, said: “This newly integrated service is a game-changer for student housing providers facing the biggest change to tenancy laws in generations.
“For many landlords facing the prospect of exiting the student market due to heightened financial risks stemming from the forthcoming Renters’ Rights Bill, this partnership offers a viable path to continue operating in a sector that contributes significantly to local economies in university towns nationwide.”
Aside from the Renters’ Rights Bill, many international students will benefit from Leap’s service, even those staying in Purpose Built Student Accommodation, which is exempt from the Bill.
StuRents’ data shows that 79% of Chinese students attending UK universities pay rent upfront compared to 2.6% of British students; in almost all circumstances, the upfront rent payment is required by landlords where tenants are unable to nominate a UK-based guarantor.
The Concurrent-Leap integration, which works alongside existing referencing systems, removes cashflow barriers associated with upfront rent requirements for international students while providing landlords with payment security.
Michael Davies, chief operating officer at Leap, said: “We’re thrilled to be partnering with Concurrent. Leap is one of the USA’s largest guarantor service providers.
“We are now expanding our reach into the UK market by partnering with Concurrent customers, offering a smarter alternative to traditional guarantors that benefits both landlords and tenants alike.”