Deposit Free Renting: 3 Big Wins for Landlords
There’s a quiet revolution going on in the lettings market, set to turn renting on its head. It’s not the landlords and tenants taking to the streets waving banners: a number of no-deposit rental schemes are leading the way against cash deposits, and they are having quite an impact on traditional rental practices.
The Zero Deposit™ Guarantee is a good example of a no-deposit rental scheme that has clearly been developed with landlords in mind. The company recognises that when private landlords commit to no deposit renting, they can benefit in three different ways:
- Better cover, no costs, faster payout
The Zero Deposit Guarantee is insurance paid for by the tenant (with the landlord’s agreement, but at no cost to the landlord). The tenant buys the insurance with a non-returnable fee based on one week’s rent and this covers the landlord for a full six weeks’ rent, instead of the usual five, at the end of the tenancy.
If money is owed due to unpaid rent or damages when the tenant checks out, the tenant must pay the landlord direct. Should an end-of-tenancy dispute arise, the landlord submits evidence to the government-backed The Dispute Service (TDS) and, if the matter is settled in the landlord’s favour, the outstanding sum is paid within two business days. Where disputes are handled by a traditional deposit protection scheme, this can often mean a wait of several weeks.
With cover provided by Great Lakes Insurance SE and subject to regulation by the FCA and Prudential Regulation Authority, there are more than enough trusted names involved to reassure landlords and tenants that the Zero Deposit Guarantee is conducted in a fair and transparent way.
- Fewer void periods and less hassle
It takes at least ten days, but can sometimes take much longer, for money to be released from a traditional deposit protection scheme. This not only means an anxious wait for tenants, it also leaves landlords with empty properties, waiting until the applicant they have signed up can raise the deposit.
With no deposit insurance, applicants can move faster to secure a rental property. That, in turn means fewer void periods for no deposit landlords and a better ROI on their rental properties. What’s more, the landlord no longer has the hassle of collecting the deposit and releasing it when the tenant moves out.
- Attracting a wider audience
Because applicants no longer need to raise hundreds of pounds to move home, the Zero Deposit Guarantee opens the door to a wider range of tenants.
A prospective tenant may be earning regularly, but they may struggle to raise the money required for a deposit on top of paying for all the other expenses associated with moving home. That means that landlords are, in effect, being forced to turn away good tenants due to temporary cash flow issues.
There’s no doubt that the Zero Deposit Guarantee is changing the way we think about renting, and, like many revolutionary ideas, the concept is beautifully simple: eliminate the logjam effect created by the cash deposit system, and everything will flow more smoothly as a result.
This is a financial promotion.
Zero Deposit is a trading name of Global Property Ventures Limited (10328435), which is registered at Business and Technology Centre, Bessemer Drive, Stevenage, SG1 2DX. Global Property Ventures is an insurance intermediary and is authorised and regulated by the Financial Conduct Authority. You can find details of this at register.fca.org.uk, by searching for the company name or reference number, which is 797026.
The Zero Deposit Guarantee is underwritten by Great Lakes Insurance SE. Great Lakes Insurance SE is a German insurance company with its headquarters at Königinstraße 107, 80802 Munich. Registered with the commercial register of the local court of Munich under number: HRB 230378 UK Branch office: Plantation Place, 30 Fenchurch Street, London, EC3M 3AJ. Great Lakes Insurance SE UK Branch is authorised by the Bundesanstalt für Finanzdienstleistungsaufsicht and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request.
Copyright © 2020 Zero Deposit All rights reserved
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