Zero Deposit™️ guarantee
Tenant FAQ

Zero Deposit is a no deposit scheme that frees up the cash you would usually pay in when making a traditional cash deposit. Learn how Zero Deposit works and discover how the no deposit rental option helps you save money, whether you’re a new tenant or mid-way through your tenancy.

What is a Zero Deposit Scheme?

What is a Zero Deposit scheme?

A Zero Deposit scheme is an alternative to a traditional cash deposit, designed to cut the upfront cost of renting for tenants, whilst providing the same level of protection for landlords. Referencing, check-in and check-out procedures all remain the same, and if there is any damage to the property or 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 be sent for expert evaluation by the dispute service (TDS).

What does a no deposit option mean for tenants?

A Zero Deposit Guarantee frees up money that would otherwise be paid into a deposit protection scheme and makes renting more affordable for you as a tenant. By opting for a no deposit insurance, you can move in faster, you’ll have less paperwork to deal with and you’ll be able to use the cash that would normally be tied up in a deposit to spend on other things.

How does the Zero Deposit option it work?

How does the no deposit option work?

Your lettings agent will put you in touch with us and we will send you an online quote. Once you have made a payment equivalent to one week’s rent and provided your Direct Debit details, copies of the paperwork will be sent to all parties. At the end of the tenancy if the lettings agent finds that you owe rent or have damaged the property, you will need to pay for it yourself. If you dispute the claim, our expert partner, The Dispute Service (TDS) will be called in to evaluate the evidence and make a judgement.

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 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.

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.

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.

What are the costs?

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.

How much does the Zero Deposit scheme cost and who pays for it?

The tenant pays an initial, non-refundable fee, equivalent to one week’s rent, followed by an annual admin fee of £26 (Zero Deposit guarantees to cover the same property at this annual sum for up to 10 years). Multiple tenants must take out a joint Zero Deposit Guarantee and share the cost of the fees, together with any payment due to the landlord under their Assured Shorthold Tenancy Agreement.

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.

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.

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

No.

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.

How does the claims process work?

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 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.

Other tenant FAQ's

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.

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.

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.

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