New deposit scheme

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Landlord Assist, a nationwide tenant eviction and rent recovery firm, has launched a new deposit replacement warranty scheme, designed to encourage movement in the rental sector and make life easier for both tenants and landlords by eliminating the need for a deposit payment at the start of tenancy.

Instead of paying a traditional deposit, which tends to be the equivalent of four to six weeks’ rent, under the deposit replacement warranty scheme tenants only pay an initial premium of between £100 and £150 which provides guaranteed payment against damage and non-payment of rent at the end of the tenancy.

For tenants, the absence of a deposit means they have to find far less money up front and allows them to move into their new property much quicker. In addition it also means they don’t have to chase up the deposit at the end of the tenancy.

Meanwhile, landlords benefit from the fact that their properties appeal to a wider marker and are more appealing to would-be tenants because they don’t require a deposit. Being able to advertise the property as ‘No Deposit Required’ can help landlords to attract tenants quickly and reduce the void period at the end of tenancy agreements.

The scheme has already attracted enormous interest, due to the fact that under the Government’s Tenancy Deposit Schemes landlords can only apply to return the tenant’s deposit at the end of the tenancy agreement when they have vacated the property.

In many drastic instances this has prevented tenants from moving into a new property until the deposit is returned whilst others have been forced to save for a second deposit.

According to Graham Kinnear, managing director at Landlord Assist, the new scheme is the perfect answer to a Catch 22 situation.

He says: “We have come across instances where tenants have been forced to borrow finance to simply pay for a second deposit whilst they wait for a refund from their previous landlord.

“Tenants love the fact that under the deposit replacement warranty they can move into new accommodation without the need to save up yet another deposit and landlords love the fact that it can speed up the tenancy process.”

Stephen Parry, commercial director at Landlord Assist says: “We think it’s a great alternative to the government approved deposit schemes, under which it can take over two months for disputed claims to be resolved. With the deposit replacement scheme all claims are guaranteed to be settled within seven days so that landlords can carry out any necessary repairs almost immediately. ”

The deposit replacement warranty scheme is currently only available to landlords and letting agents who sign up to Landlord Assist’s Tenant Referencing service.

For more information contact 08707 662288 or visit www.landlordassist.co.uk.