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.
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).
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.
The key benefit of a no deposit option versus a traditional rent deposit is that you don’t have to commit your money to a traditional rent deposit scheme. Purchasing a Zero Deposit™ Guarantee costs just 1 weeks rent and means that you can hold onto the money you saved for your traditional tenancy deposit, leaving you free to spend your cash on the things you need.
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.
Your letting agent must be a Zero Deposit approved partner and the landlord of your chosen property must be happy to offer you a no deposit scheme as an alternative to a traditional cash deposit. You can find a list of partner agents here. Simply tell your lettings agent that you are interested in no deposit flats or houses and they will show you a list of Zero Deposit properties available to rent.
If your landlord doesn’t accept the Zero Deposit scheme, you will need to pay a tenancy deposit into a traditional rent deposit scheme. It’s the landlord’s choice whether to offer deposit free renting, so please check with them before thinking about purchasing a Zero Deposit Guarantee.
The Zero Deposit scheme works with multiple tenants to make all tenants jointly liable for any financial loss or damage suffered by the landlord. Each person signs the joint Zero Deposit Guarantee and shares the cost of fees. When a tenant moves out, we’ll update your documentation.
Any tenant can use Zero Deposit if they pass referencing for their share of the rent, or have a guarantor who also passes referencing. Agents must use one of our approved reference providers.
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.
It costs nothing to cancel your Zero Deposit™ Guarantee but you must do this within the 14-day cooling-off period after purchasing the Zero Deposit Guarantee. If you don’t pay money owed to your landlord under the no deposit scheme, we may engage a debt collection agency, which could affect your credit rating. You may also be liable for the agency’s costs.
If you extend your stay at the property beyond your initial tenancy period, the Zero Deposit™ Guarantee is automatically extended, so you can continue to enjoy deposit free renting. When the guarantee is renewed, you will be charged a £26 administration fee, payable for each year that you remain in your Zero Deposit covered property.
If you cause damage or fail to pay your rent when your tenancy ends, you must pay the landlord directly. If you don’t, we will pay them on your behalf and may use a debt collection agency to collect any money owed (you could be liable for these costs). Be aware that fees paid towards the Zero Deposit scheme are non-returnable.
Disputes over claims are resolved through our partnership with The Dispute Service (TDS), which ensures fair outcomes for landlords and tenants when end of tenancy disputes arise at no deposit rental properties. TDS adjudicators make decisions on the evidence provided, complying with the Adjudicator Code of Conduct, available on the TDS website.
If you disagree with the amount being claimed by your landlord, we will refer your case to The Dispute Service (TDS), who will review the evidence and decide whether you are liable for any financial loss or damage under the Assured Shorthold Tenancy Agreement and, if so, the amount you must pay.
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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.
“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.
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.