A student property management platform has launched a strategic partnership with guarantor waiver service Leap.
StuRents says this is offering landlords critical protection against financial risks posed by the upcoming Renters Rights Bill.
The platform claims the partnership provides landlords with what it calls “a robust safety net at a time when the sector faces extensive legislative changes.”
It adds that the solution addresses some of the Bill’s most concerning aspects for property owners, including the ban on upfront rental payments and extended eviction thresholds. Fixed term planning will also become more difficult for HMO student landlords who will be at the mercy of periodic contracts.
Leap’s service removes the need for tenants to nominate a guarantor when completing their booking journey as its costs are incorporated into the monthly rental instalments charged by landlords. As a result, tenants experience less administration and a convenient booking process, while participating landlords can market ‘no guarantor required’ tenancies, and retain the benefits that a guarantor would traditionally offer.
A StuRents spokesperson says: “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.”
The platform says that 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.
A Leap spokesperson adds “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.”
This article is taken from Landlord Today