RentGuarantor (RGG) has entered into a licence agreement with Tenancy Deposit Solutions, trading as mydeposits, as part of plans to expand its offering in the UK private rented sector. The agreement marks the initial stage in developing a rent deposit product to sit alongside the company’s professional guarantor service.
mydeposits is one of three UK government-authorised tenancy deposit protection schemes and has operated since 2007. It represents about 400,000 landlord members and protects more than £1.3 billion of tenant deposits across the UK private rented sector. Landlords and letting agents are legally required to protect tenancy deposits within a government-approved scheme.
Under the agreement, RentGuarantor’s agent, landlord and tenant customers will be able to access the mydeposits scheme via the company’s website. The combined product will allow tenants to take out a shared deposit and guarantee package under a single fee paid by the tenant.
Currently, deposits are typically capped at five weeks’ rent and must be lodged in an authorised protection scheme. At the end of a tenancy, funds are returned to the tenant subject to agreed deductions, with disputes handled by the scheme. However, under the proposed new model, the deposit amount would be agreed at the outset but retained by the tenant rather than lodged with a scheme.
At the end of the tenancy, the tenant would release any agreed deductions to the landlord. In the event of a dispute, a resolution process would determine any amount payable, with only that sum transferred. The deposit amount would be insured under mydeposits’ protection scheme, meaning RentGuarantor would not be liable for deposit amounts if a tenant fails to pay. Meanwhile, RentGuarantor would continue to protect landlords against rent arrears through its professional guarantor service.
The directors believe the agreement will broaden the company’s product portfolio and strengthen its value proposition by offering dual protection of deposits and rental income, while streamlining processes through its technology platform.
RentGuarantor’s CEO Paul Foy said: “This Agreement underscores RentGuarantor's ongoing focus on exploring opportunities that support growth and enhance our proposition within the UK private rented sector. We believe that our proposed new product will represent a major step forward in our offering to tenants, agents and landlords, combining our award-winning professional guarantor solution with a leading government-approved deposit protection scheme that commands a significant market share.
“This proposed service will offer a highly compelling and pragmatic approach to deposit and guarantee management, aligning with upcoming regulatory changes that seek to empower renters whilst facilitating long-term, efficient and trusting landlord and tenant relationships.
“I look forward to working with mydeposits as we develop and launch this service.”
View from Vox
This agreement represents a logical extension of RentGuarantor’s core guarantor model into the adjacent deposit market. By partnering with an established, government-authorised scheme that already protects more than £1.3 billion of deposits, the company gains immediate credibility and scale. If successfully implemented, the combined product could enhance customer appeal and create a more comprehensive solution for landlords and tenants.