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No Deposit Schemes: A Handy Guide
Times are undoubtedly tough on renters at the moment. One way that’s being investigated in order to ease pressure and to help stimulate the rental market is a no deposit scheme. Here, a tenant pays one week’s rent as an insurance fee, instead of the regular capped five-week fee which they receive back at the end of their tenancy.
Tenants remain responsible for any damage caused during their tenancy, any unpaid rent or utilities as well as ensuring all their possessions are removed from the property. This means that landlords can seek out payment for any charges incurred to cover the costs listed above, via insurance companies. Both landlords and tenants can also dispute these costs via an Alternative Dispute Resolution company, which is easily accessed through an online property agent.
No-Deposit Schemes: A Renter’s View
A recent survey by Your Move state that, with the growing awareness of deposit-free tenancies, more and more tenants are in favour of the shift, with just over 50% of those questioned stating that they are in favour of deposit-free renting.
Similarly, those aged between 25-44 who had children were also in favour of deposit-free renting, with around 70% saying that it would influence their choice of properties when coming to rent a house. Although non-conclusive, the research seems to make clear the fact that renters would much rather have the choice between a traditional deposit or a deposit-free scheme when moving into a specific property.
No-Deposit Schemes: Agency Developments
Although little is set in stone regarding this brand new market, there have been a lot of interesting developments within the sector, as a selection of providers gear up to meet the market’s potential needs, with provider Flatfair announcing a partnership with global property consultant CBRE as well as signing up multiple agencies who are seeking alternatives to the current deposit scheme.
No-Deposit Schemes: A Landlord’s View
As both demand and the agencies and companies that are kitted out to serve this up-and-coming market increase, it’s important that you as a landlord acquaint yourself with all there is to know about deposit-free rentals. This can help furnish you with all the information needed to decide if it’s something you’d like to work with – or something your tenants would be interested in. Plus, there’s always your letting agent to furnish you with a little extra advice on the subject.
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