Pay less upfront

Pay less upfront

Free up your cash by buying a Zero Deposit Guarantee instead of paying an upfront lump sum deposit.

  • Pay less up front

    Free up cash by paying a fee equivalent to one week’s rent

  • More choice

    Zero Deposit gives tenants an alternative to the traditional deposit

  • Greater freedom when moving

    Avoid having to fund a second deposit when moving from one rental property to another

Moving home can be costly, making it hard to find rent and your deposit, along with the other costs of moving.

A Zero Deposit Guarantee costs the equivalent of one week’s rent and replaces the traditional tenancy deposit, aiming to make renting more affordable.

How can I get a Zero Deposit Guarantee?

To qualify for a Zero Deposit Guarantee you need to pass the new tenant checks of one of our partner agents and be renting a property with a standard Assured Shorthold Tenancy agreement.

Zero Deposit Guarantees are not available on all properties and are offered subject to the landlords approval.

Speak to your agent who can introduce you to Zero Deposit for a quote on your next rental property.

How it works

PRE-TENANCY: 3 simple steps

How it works
1 Research & sign-up online

You review your Zero Deposit Guarantee quote online, having been introduced to us by your letting agent

How it works
2 Purchase

You make a payment equivalent to one week’s rent, provide your Direct Debit details and the paperwork is generated and copies sent to all parties

How it works
3 Guarantee in place

Your landlord gets effectively the same protection as a 6-week tenancy deposit and you remain liable for any damage or financial loss due to them

POST-TENANCY: 3 simple steps

How it works
1 Check-out & inventory

At the end of the tenancy the inventory and checkout is completed and if you leave the property in a satisfactory condition with no outstanding rent or bills, your Zero Deposit Guarantee expires with no further action required

How it works
2 Disputes settled or evaluated

If there is any damage to the property or any unpaid rent, you will need to reimburse the landlord yourself. If you dispute the landlord’s claim, you and the landlord will be asked for evidence which will then be sent for expert evaluation.

How it works
3 Claims resolved & settled

If the expert finds in the landlord’s favour, we settle the claim with your landlord and seek reimbursement from you directly. If you fail to reimburse us at this point, you may be liable for recovery costs and it could impact on your credit history.

Important Information:

•  This Guarantee provides your landlord with protection if you do not pay them directly for the cost of any financial loss or damage due

•  You remain completely responsible for any financial loss or damage due to the landlord, as you would with a traditional tenancy deposit

•  The cost of the Zero Deposit Guarantee is not returned to you at the end of your tenancy or offset against any claim by the landlord

•  If you dispute your landlord’s claim, and our expert evaluation partner finds in your landlord’s favour, we will settle with them and then seek reimbursement from you. Failure to pay us at this stage will result in us passing your debt to a debt collection agency which may incur further costs for you and could affect your credit rating

•  A Zero Deposit Guarantee is offered to you as a choice, so if you prefer to pay a security deposit, you can. With a traditional deposit your money will be returned to you if there is no financial loss or damage due to the landlord at the end of the tenancy

•  There is an annual admin fee of £26 per tenancy collected every year by Direct Debit from the first anniversary until the end of your tenancy

FAQs for Tenants

How much does a Zero Deposit Guarantee cost?

A Zero Deposit Guarantee costs a tenant 1 week’s rent, so if your rent is £220 per week, that is the cost. The Zero Deposit Guarantee is automatically renewed on an annual basis. On renewal, there is a charge of £26 which covers the cost of managing the Zero Deposit Guarantee. Where there is a change of tenant under an existing Assured Shorthold Tenancy Agreement, the new incoming tenant will need to pay a £40 fee to be added to the Zero Deposit Guarantee.

When do I pay for the Zero Deposit Guarantee?

You will need to pay for the Zero Deposit Guarantee at the same time that you would normally be expected to pay the security deposit.

How much does it cost to cancel?

There is no cancellation fee, but you can only cancel within a 14 day cooling off period after purchasing the Zero Deposit Guarantee.

How does it work with multiple tenants?

Multiple tenants must take out a joint Zero Deposit Guarantee. They share the cost of the fees and any payment due to the landlord under the Assured Shorthold Tenancy Agreement for any financial loss or damage the landlord suffers. The tenants are all jointly and severally liable, meaning if one tenant doesn’t pay, the other tenants assume total liability for the entire amount due.

Does the Zero Deposit Guarantee cover me if I cause damage or don’t pay my rent?

No. You remain liable for any financial loss or damage due to the landlord as you would if you had paid a cash security deposit. The cost of the Zero Deposit Guarantee is not returned to you or offset against any claim by the landlord.

What happens at the end of the Assured Shorthold Tenancy Agreement if I cause damage or don’t pay my rent?

You settle this with the landlord directly at the end of the tenancy. If you don’t, we pay them on your behalf and then collect any monies owed from you. We may engage the services of a debt collection agency in order to recover any such monies and you may be liable for their cost.

What happens if I don’t pay you?

It is important that you do. If you do not we may pass your debt to a debt collection agency which could affect your credit rating. You may also be liable for the costs we incur engaging the debt collection agency.

What if I disagree with the amount being claimed by the landlord?

We refer your case to The Dispute Service (TDS), our expert evaluation partner, who will review the evidence and determine whether you are liable for any financial loss or damage under the Assured Shorthold Tenancy Agreement and, if so, the amount due to the landlord.

How do I know that I can trust Zero Deposit?

Integrity is one of the core values of our business. Zero Deposit Guarantees are provided by Great Lakes Insurance SE, which is regulated by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority which means there are safeguards in place to help ensure you get a fair and transparent product with no hidden risks.

Will a dispute over a claim be resolved fairly?

We have partnered with The Dispute Service (TDS) to help ensure fair outcomes for landlords and tenants in the event of a dispute. All TDS adjudicators belong to the Chartered Institute of Arbitrators and comply with their Adjudicator Code of Conduct, which is available on the TDS website. The adjudicators make decisions based on the issues in dispute and the evidence provided.

What if I extend my stay at the property beyond the initial tenancy period?

The Zero Deposit Guarantee will automatically renew if your tenancy agreement is extended and we charge an annual administration fee of £26 on renewal.

What if a landlord does not accept Zero Deposit?

You will need to provide a traditional tenancy deposit. It is a landlord’s choice to decide whether to allow Zero Deposit as an option in place of a traditional tenancy deposit.

What happens with multiple tenants when one person decides to leave?

When we are informed that a tenant is released from a multi-tenant agreement, we will update the Zero Deposit Guarantee to reflect the change and re-issue guarantee documentation. Any new tenants moving into the property will need to be added to the Zero Deposit Guarantee and will need to pay an administration fee of £40 to do this.

Do I get my fee back when I leave at the end of the tenancy if there are no issues?

No.

Do you offer services to vulnerable customers?

“Customer vulnerability” is defined as any personal, social or other factor(s) that may impact your ability to exercise informed decision making, rendering you vulnerable to suggestion and/or impacting your confidence to lend or borrow. Below we have outlined a broad range of vulnerable circumstances and situations including, but not limited to:

  • Illness/Sickness – This could be due to a short-term condition or something of a longer-term nature such as recuperating from medical conditions.
    • Physical Disability – The broad nature of disability encompasses a number of forms including but not limited to: deafness, blindness, and the restriction of limb use or mobility. All of these are factors which may impact your ability to purchase a guarantee through Zero Deposit.
    • Bereavement – Loss of a partner, relative or close friend may temporarily render you susceptible or vulnerable, something which may impact rational decision making.
    • Mental Capacity – This applies to customers who may suffer from any form of mental incapacity, which again may impact your ability to purchase a guarantee.

 

We cater to vulnerable customers. If you feel one of the above might be applicable, you can contact us here or call and a member of the team will be able to assist you.

Will Zero Deposit ever request my password or other security details?

We will never ask for your password or login details. If you receive any request for this information, kindly report it to us at support@zerodeposit.com

Ensure you do not use a password that can be easily guessed and never use the same password for multiple websites for which you are registered to use. Be minimalist with the amount of personal information you share about yourself online, to help reduce your risk of identity theft and fraud. Always update your computer, tablet and smartphone’s operating system and web browser software. We recommend you use anti-virus software to protect your devices.

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