You know that the Zero Deposit Guarantee really works for tenants, but how do you let landlords know that no deposit rentals are a great idea?
Whether you’re about to view a property that doesn’t offer the no-deposit option, or you’re currently renting and want to release the cash security deposit you’ve paid in, it may be worth approaching your lettings agent or landlord for a chat about the benefits of the Zero Deposit Guarantee.
It will help if you are up to speed with how the process works for both tenants and landlords, so here are a few must-know facts:
Zero Deposit for tenants
1. As a Zero Deposit tenant, you get to keep the cash you would usually commit to a traditional tenancy deposit protection scheme.
2. All you (the tenant) pays at the start of your tenancy is a non-returnable fee based on one week’s rent, plus a £26 annual admin fee per year if you choose to stay on.
3. You’ll still be responsible for settling any outstanding rent or damage costs when the tenancy ends, but any disputes will be handled by the trusted TDS dispute resolution service.
Zero Deposit for landlords
1. Zero Deposit landlords are covered by insurance for six weeks’ rent instead of the usual five (with insurance provided by Great Lakes Insurance SE).
2. Zero Deposit is backed by the Financial Conduct Authority (FCA) and partnered by the government-backed TDS dispute resolution service.
3. The tenant pays for the insurance and the landlord has nothing to pay.
4. If there’s a dispute and TDS awards in the landlord’s favour, the landlord will receive a payout within two working days.
5. The landlord will have fewer void periods with the Zero Deposit Guarantee: cash owed for end-of-tenancy repairs arrives more quickly and new tenants move in faster, without having to save for a deposit.
6. The simple, online application process means a big reduction in paperwork.
7. Landlords are protected by the Financial Services Compensation Scheme and all customers have access to the Financial Ombudsman Service.
If you’re already renting and want to change to a Zero Deposit Guarantee, simply ask your landlord or letting agent if they would be willing to switch. If they agree, you’ll both sign up to Zero Deposit online, and once the fee has been paid, the landlord can release your cash deposit.
New tenants will complete an online application, pay the Zero Deposit fee and go through all the usual procedures – including credit and reference checks – you would normally expect at the start of a tenancy.
There’s lots more information available for your landlord, so don’t forget to provide a link to the Landlords Page on the Zero Deposit website. Here: www.zerodeposit.com/landlords
Once they have agreed to go deposit-free, you’ll be able to buy whatever you like with the cash that would otherwise stay locked in a tenancy deposit scheme. Job done!