With changes to cash deposits as part of the Tenant Fees Ban, the way deposits are handled both before and during tenancies has changed. From 1st June 2019, on existing tenancies that are renewed, landlords will need to return any deposit amount held that exceeds the new 5-week deposit cap. We have partnered with Zero Deposit to bring landlords a smarter deposit solution.
Zero Deposit can offer the guarantee on both new and existing tenancies so landlords can beat these changes and pass on the benefits of deposit free renting to tenants. Landlords will not need to worry about holding client money in a deposit scheme either.
Replacing the traditional cash deposit, tenants can purchase a Zero Deposit Guarantee with just one week’s rent. This works for both landlords and tenants and crucially gives landlords the equivalent cover of a 6-week cash deposit - even with the 5-week deposit cap in place. Zero Deposit also provides a fully FCA regulated deposit replacement guarantee.
How to get started
We've made it easy. We have set Zero Deposit as the standard offering on all our adverts with an opt-out option available. When landlords list their property next time, Zero Deposit option will be added as a default, which can be opted out. Tenants can then choose between the Zero Deposit option or cash deposit aligned with the deposit cap.
Why is this a win-win
Offering Zero Deposit to tenants allows them to unlock their deposits early to give a cash flow boost, which gives them better control over their finances. Meanwhile, it increases the level of protection landlords receive.
The property listing will be more attractive to tenants, which speeds up the renting process and reduce void periods. Plus, landlords don't need to pay a dime for this.
Frequently Asked Questions
Will landlords still need to collect deposit from tenants?
No, the Zero Deposit Guarantee replaces the need for a tenancy deposit, giving landlords effectively the same security and protection but without the hassle of collecting a traditional deposit.
How are claims dealt with?
Tenancy Dispute Service (TDS) will be used to adjudicate claims, so the dispute resolution is speedy and the outcome is the same as a cash deposit. TDS will settle the dispute within 28 days and approved claims will be paid in just 2 working days. This will be done at no cost to landlords.
Who qualifies for a Zero Deposit mid-tenancy guarantee?
Tenants who are making monthly payments for their rent and are not in rent arrears or dispute about damage to the property.
Is a Zero Deposit guarantee as good as cash in the bank?
Yes. Zero Deposit is FCA (Financial Conduct Authority) regulated and every Zero Deposit Guarantee is backed by Munich Re and comes with protection from the FSCS (Financial Services Compensation Scheme) who also provide protection to the banks.
Is the Zero Deposit Guarantee compliant with the tenant fees ban?
Yes, providing it is always offered to the tenant as a choice.
What do tenants need to do at the end of the tenancy?
At the end of the tenancy, if there are no damages or unpaid rent, then the guarantee will end and there is no further action required. If there are any damages or unpaid rent at the end of the tenancy, tenants will still be liable to pay for it. Any disputes that can’t be resolved with the landlord will be referred to TDS for adjudication.
Will Zero Deposit attract a different type of tenant?
The Zero Deposit Guarantee may attract a wider audience of tenants. However, we will still carry out the same screening and referencing process on tenants to ensure they are suitable and meet the criteria you have agreed with us prior to them being introduced to Zero Deposit.
Ready to list your property and find the right tenant? Check out how we can help.
Want to learn more about Zero Deposit Guarantee? Contact us at admin@makeurmove.co.uk to speak to our customer support team.
