RentGuarantor teams up with mydeposits to bundle rent deposits and guarantees
RentGuarantor Holdings PLC (AIM: RGG) has signed a licence agreement with Tenancy Deposit Solutions Limited, trading as mydeposits. The deal is the first step towards launching a combined rent deposit and professional guarantor package that sits alongside RentGuarantor’s existing service. mydeposits is one of three UK government-authorised tenancy deposit protection schemes, representing about 400,000 landlord members and covering more than £1.3 billion of tenant deposits.
This partnership aims to simplify how tenants and landlords handle two pain points at once: the security deposit and the rent guarantee. It is an early-stage agreement, with more details on the product launch to come “in due course”.
What exactly was announced today
Under the licence, RentGuarantor’s agent, landlord and tenant customers will be able to access the mydeposits scheme via RentGuarantor’s website. The ambition is a single, shared package where the tenant pays one fee that covers both a protected deposit and RentGuarantor’s professional guarantor service for rent arrears.
Crucially, the model inverts the usual deposit process. Instead of the landlord or agent lodging the deposit with a scheme, the money stays with the tenant and is insured under mydeposits’ protection. At the end of the tenancy, agreed deductions are paid to the landlord. If there is a dispute, a resolution process decides what, if anything, the tenant must pay. RentGuarantor remains on the hook for rent arrears via its guarantor product, but it is not liable for deposit amounts.
How the proposed deposit-and-guarantee package works
- Traditional route: Tenants typically pay a deposit capped at five weeks’ rent, which is protected in a government-authorised scheme. At move-out, the deposit is returned minus deductions or settled via the scheme’s dispute process.
- New route via this Agreement: The deposit amount is set upfront, but the tenant holds the cash. The deposit is insured through mydeposits, with disputes handled through a resolution process. Only the agreed or adjudicated amount is transferred to the landlord at the end.
- Protection stack: Landlords get deposit protection from mydeposits and rent arrears protection from RentGuarantor. Tenants pay one fee and keep control of their deposit funds during the tenancy.
Why this matters for RGG investors
This is a strategic broadening of RentGuarantor’s proposition in the UK private rented sector. Pairing a government-authorised deposit protection scheme with a professional guarantor service is a logical bundle that targets friction in the renting process. For landlords and agents, it promises dual protection without an added fee to them. For tenants, it solves a cashflow headache by avoiding the wait for deposit returns when moving between properties.
In plain terms, this could deepen RentGuarantor’s relationships with agents and landlords, improve conversion from website traffic to paying tenants, and increase cross-sell opportunities. mydeposits’ scale – approximately 400,000 landlord members – provides a large adjacent network that RentGuarantor can plug into via the licensed access point.
Regulatory backdrop in brief
Tenancy deposits on Assured Shorthold Tenancies in England and occupation contracts in Wales must be protected in one of three authorised schemes, of which mydeposits is one. The RNS also references upcoming regulatory changes aimed at empowering renters and supporting longer-term, trusting landlord-tenant relationships. While details are not provided, aligning with an authorised scheme positions RentGuarantor’s offer on the right side of evolving rules.
Benefits and potential drawbacks
What looks positive
- Compelling bundle: A single fee for tenants covering both deposit protection and rent guarantee could be easier to sell than standalone products.
- Landlord-friendly: Dual protection for deposit and rent, with no landlord fee, may aid adoption by agents and property owners.
- Cashflow relief for tenants: Tenants keep their deposit funds during the tenancy, addressing the common gap when moving home.
- Credible partner: mydeposits is government-authorised and already protects more than £1.3 billion of deposits.
What to watch
- Commercial terms not disclosed: No information on pricing, revenue share, margins or exclusivity. Unit economics will decide how accretive this is.
- Execution risk: Integrating journeys, educating the market, and managing disputes smoothly will be key to adoption.
- Regulatory nuances: The model differs from the standard lodge-and-hold approach. Ensuring clarity for landlords, agents and tenants will be essential.
- Reliance on partner: The insurance of deposit amounts sits with mydeposits. Dependence on a third party is a consideration.
Key numbers and facts from the RNS
| Listing | AIM: RGG |
| mydeposits landlord members | Approximately 400,000 |
| Deposits protected by mydeposits | More than £1.3 billion |
| Deposit cap (context) | Five weeks’ rent |
| Authorised UK deposit schemes | Three (mydeposits is one) |
| RentGuarantor service coverage | UK private rented sector, currently excluding Northern Ireland |
| Founded | 2018 |
What’s not disclosed
- Launch date for the new product – not disclosed.
- Financial terms of the licence with mydeposits – not disclosed.
- Pricing to tenants and any revenue share – not disclosed.
- Forecast impact on revenues or margins – not disclosed.
- Exclusivity or duration of the agreement – not disclosed.
Why this could shift the dial for RentGuarantor
RentGuarantor already acts as a professional guarantor across the socioeconomic spectrum, including students, working professionals and those receiving benefits. By adding a deposit solution from a government-authorised scheme, the company can present itself as a one-stop shop for landlord assurance and tenant access. That makes marketing simpler and could lift conversion rates.
The bigger picture is positioning. In a rental market under pressure, a product that supports tenant cashflow while protecting landlords is likely to get attention from agents. If adoption follows, it strengthens RentGuarantor’s value proposition and stickiness with partners.
What to watch next
- Product launch specifics: timelines, pricing, and onboarding process.
- Early traction indicators: number of agents onboarded, bundled package uptake, dispute resolution performance.
- Any regulatory updates referenced by the company that affect deposits or guarantor arrangements.
RentGuarantor says further information on the launch will be announced in due course. You can read and engage with the announcement via the company’s Investor Hub link provided in the RNS: investorhub.rentguarantor.com.
Josh’s take
This is a neat bit of product engineering. Marrying a government-authorised deposit protection scheme with a rent guarantee tackles two major frictions in one go. If priced sensibly and executed cleanly, it should be attractive to agents and landlords while easing tenant cashflow – a rare win-win in the rental market.
The open questions are commercial. Without visibility on pricing, revenue share and timing, investors cannot model impact yet. Still, as a directional move, it is strategically sound and aligns with regulatory momentum. One to watch for launch details and early adoption metrics.
