MIDAS SHARE TIPS: RentGuarantor, a pioneer in the rental market, is on the rise

An Englishman’s home is his castle. But for more than four million households, that castle is privately rented, rather than directly owned. Some can’t afford to buy; others are simply not interested in homeownership. Be that as it may, the numbers have increased in recent years and will likely continue to do so.

Whoever the tenant is, landlords have the right to request documentation that potential residents can pay the rent, such as employment records, character references and credit checks.

Up to 20 percent of potential tenants find this a problem. Although they are perfectly capable of paying their bills, they often do not have the necessary paperwork. In such cases, landlords tend to ask for a guarantor, often mom and dad for young people and students. But parents or colleagues may lack the resources or inclination to intervene – and the logistics for anyone applying from abroad can be nearly impossible.

Paul Foy, an enterprising Irishman, discovered the problem and decided to try to solve it. With a portfolio of 27 properties, Foy has been active in the rental market for over 30 years and is a passionate advocate of fair play for both landlords and tenants.

When he noticed that perfectly healthy applicants were being rejected across the board because they couldn’t provide documentation or guarantors, he founded Rent Guarantor, an online company designed to help both renters and property owners.

The company is listed on the Aquis stock exchange for small, high-growth companies, its shares cost £2.74 and should rise in price this year and beyond.

Founded in 2017, RentGuarantor is designed to help renters secure the homes they want and reassure landlords that they won’t be out-of-pocket if tenants default on payments. Applicants complete online questionnaires and, if successful, receive a year-long guarantee. Foy and his team have developed the process over the past few years and it seems to work. Thousands of tenants use RentGuarantor, payment defaults are rare and the company is increasingly supported by estate agents and specialist groups, such as Clever Student Lets.

The full-year results for 2023 will be released in full this spring, but a trading update last week showed that revenues were 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 contract increased by 57 percent to 1,124. contract also increased.

Foy has invested heavily in the company, so it remains loss-making, but revenues are expected to rise quickly and profits should follow.

Midas judgment: RentGuarantor is a pioneer in the rental market and uses smart technology to make life easier for landlords 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 far.

Traded on: Aquis ticker: RGG Contact: rentalguarantee.com or 020 7193 4418