An Englishman’s house is his castle. But for more than four million households, that castle is privately rented, rather than owned outright. Some cannot afford to buy; Others simply aren’t interested in homeownership. Either way, the numbers have increased in recent years and are likely to continue to do so.
Whoever the tenant, landlords have the right to request documentation showing that potential occupants can pay the rent, such as employment records, character references, and credit checks.
Up to 20 percent of prospective renters find this a problem. They may be perfectly capable of paying their bills, but will often lack the necessary documentation. In these cases, the owners usually ask for a guarantor, often mom and dad, for young people and students. But parents or colleagues may lack the means or willingness to intervene, and the logistics for anyone applying from abroad can be almost impossible to navigate.
Paul Foy, an Irish entrepreneur, detected the problem and decided to try to solve it. With a portfolio of 27 properties, Foy has spent over 30 years in the rental market and is a passionate advocate for fair play for both landlords and tenants.
Realizing that perfectly sound applicants were being rejected across the board because they couldn’t provide documentation or guarantors, he founded Rent Guarantor, an online business, designed to help both renters and landlords.
Safe Like Homes: RentGuarantor is designed to help renters secure the homes they want and assure landlords that they won’t have to pay out of pocket if renters default.
The company is listed on the Aquis exchange for small and fast-growing companies, the shares cost £2.74 and its price should rise this year and in the future.
Created in 2017, RentGuarantor is designed to help renters get the homes they want and assure landlords that they won’t have to pay out of pocket if tenants default. Applicants complete online questionnaires and receive a one-year guarantee if successful. Foy and his team have been developing the process for several years and it seems to work. Thousands of renters use RentGuarantor, defaults are rare and the company is increasingly supported by real estate agents and specialist groups, such as Clever Student Lets.
Annual results for 2023 will be published in full this spring, but a trading update last week revealed that revenue was up almost 80 per cent year-on-year to £742,000, the number of tenant contracts was up 57 per cent to 1,124 and the value of each one. The contract also rose.
Foy has been investing heavily in the business, so it is still loss-making, but revenue is expected to grow at a pace and profits should hold up.
Midas Verdict: RentGuarantor is a pioneer in the rental market and uses smart technology to make life easier for owners and tenants. Foy is an astute businessman with decades of experience under his belt. With more than 30 percent of the shares, he is also motivated to succeed. At £2.74, the shares should go a long way.
Traded in: here Heart: RGG contactct: rentguarantor.com or 020 7193 4418