Updating post from Reddit.
Advice please. About to let out our property to a new tenant and estate agent has suggested offering 'reposit' instead of the standard cash deposit. Does anyone have any experience with this as its the first time ive heard of it. Thank you
Not a landlord - although I did work for a year for a large letting agency (albeit managing the maintenance side).
As far as I am aware, these deposit insurance schemes will only cover unpaid rent (which the scheme then chases the tenants for) - but they don’t cover deductions for damage or maintenance.
If I was a landlord, I personally wouldn’t offer it - here’s why.
I’d say most tenants end up with some kind of charge when they leave - anything from light cleaning, to thousands in damages.
If the money is already in a scheme and you follow process with check in and out inventories, then this is fairly easy to cover with the deposit.
If the tenants use a scheme, then there is no money to cover these damages. And you’re left chasing tenants who couldn’t lay their hands on enough cash for a deposit.
From a letting agent perspective, it’s a no brainer - because it opens up more applicable tenants. They get their fee regardless, so it’s an advantage to them.
Again, I’m not a landlord, not an expert, but I make a living from sorting out maintenance issues for landlords - currently on a job where a tenant has left leaving over £7k of damage - I’d want to make sure I had the maximum amount of coverage I could get if I was the landlord.
For the most part these are a scam on the tenant not the landlord - although do check damages are covered.
I’m a landlord and I need to claim as a tenant left in arrears and it’s impossible to contact them. Total con
Stay away from these no deposit schemes. There are 3 schemes, TDS, DPS and MyDeposits, these are backed up with protections. Yes, they are more tenant friendly in disputes but evidence is key. Checkin and checkout reports, fair deductions etc.
There are advertised to the tenant as "no deposit" as it's just a monthly fee, not a deposit.
Do note, if you offer only, no deposit, so without offering a normal deposit or no deposit at all. Then in England, the no deposit fees, becomes a non-permittee fee under tenancy fees act 2019 and must be repaid back to the tenant.
Good company, and it’s their primary purpose not like a referencing company that has below-par bolt-ons to their route to market. From memory the tenant pays a nominal fee and you’d receive 8 weeks equivalent indemnity. They then chase the tenant for anything over and above that initial amount.