Zero Deposit exists as an alternative to the traditional security deposit, which provides landlords with the same cover and protection over their property and rental income.
As of 1st June, as part of the Tenant Fee Act 2019, the government have brought in a five week deposit cap for all tenancies with annual rent of less than £50k. Zero Deposit will still be able to offer six weeks cover to the landlord even after the five week cap has become law.
Benefits of Zero Deposits
1. Fast rental process
Tenants would have a smaller upfront cost, which would limit delays on waiting for pays days to move in and decreasing chance of void periods.
2. Feel secure and protected
You are provided with the same cover as a six week tenancy deposit. Also, the policy is backed and underwritten by one of the world's largest insurers, Munich Re.
3. Appeal to a larger audience
Allowing the tenants another option other than a traditional security deposit, you can increase demand and have a better chance of finding the right tenants.
4. Tenants will still be accountable
Tenants will still remain fully accountable for looking after the property and paying their rent. In the event of fair claim at the end of a tenancy, Zero Deposit will make the payment to you.
5. Less paperwork
With Zero Deposit you will not need to be registered with one of the deposit protection schemes, which saves time and money.
Zero deposit process
Speak to your agent and let them know you want to accept Zero Deposit on your property and they will talk you through the next steps.
The tenant will pay one week's rent for a Zero Deposit policy online and all documents are sent to relevant parties.
You've now got the same cover as a six week deposit. Your tenants are ready to move into their new home.
End of tenancy
Providing the tenant leaves the property in good condition with no outstanding payments, the policy expires.
Get in touch with your local agent
Whether you're an existing Reeds Rains landlord or are simply interested in learning more about how Zero Deposit can work for you, get in touch with your local Reeds Rains estate agents who will be able to guide you through the entire process.