Mitigating Risk in a Post-RRA Environment

The abolition of rent in advance is arguably one of the most challenging aspects of the Renters’ Rights Act for lettings professionals. Money in the bank provided clarity and confidence regardless of whether a tenant’s ability to pay became a problem later, and this surety enabled agents to work efficiently and smoothly, keeping business moving at pace. How can we as an industry replicate this certainty of income for our landlord clients as we move forwards, while remaining compliant with the new rules?

The role of the Rent Guarantor

An empty property means no rent payment but at the same time, agents cannot afford to compromise on risk. Striking the right balance becomes ever harder when applicants fall outside standard referencing criteria, even when they are otherwise suitable.