Home > Landlord > Do You Have An Existing Tenancy With Deposit Over 5-Week Rent Cap?

Do You Have An Existing Tenancy With Deposit Over 5-Week Rent Cap?

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.  the amount for tenancy deposit you can ask a tenant to pay will be capped at a maximum of 5-week rent for the property is less than £50,000, and up to 6 weeks for the property is £50,000 or above. If you renew a contract after 1st June 2019, and the tenant paid more than the permitted deposit amount, you must repay any overpayment.

With the deposit cap in place, landlords will only be able to receive a cover of 5-week rent when a new tenancy starts or an existing tenancy is renewed after 1st June.

Repaying overpayment and receiving less cover can be a hassle for many landlords, so we now offer a smarter solution, in partnership with Zero Deposit Guarantee.

What Is Zero Deposit Guarantee?

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. Landlords do not need to pay for this service.

How Can I Use Zero Deposit Guarantee?

When you choose to advertise a property with us, Zero Deposit will be added to your listing by default, which you can opt out easily. If you have not opted out, Zero Deposit will be offered to the tenants as an option when they have made an offer. Tenants can choose between traditional cash deposit and Zero Deposit Guarantee.

How Can I Benefit From Zero Deposit?

We have an article with a detailed explanation and FAQs regarding Zero Deposit here.

How Can Tenants Benefit From Zero Deposit?

Costs the equivalent of one week’s rent and replaces the traditional security deposit, renting will be more affordable for tenants as they can unlock their deposit.

Whether the tenants are about to move in or have already started the tenancy, Zero Deposit can help tenants rent deposit free. New tenants can use Zero Deposit instead of an expensive cash deposit, whilst existing tenants can use Zero Deposit to get their cash deposit back. At the end of the tenancy, the process ensures that disputes have a fair outcome for everyone, with TDS providing impartial adjudication

Can I Switch To Zero Deposit Guarantee If I Have An Active Contract, With Deposit More Than 5-Week Rent?

Yes, we can help you with the switch on active tenancies with Makeurmove. When you have let our team know that you would like to offer Zero Deposit to your tenants, our team will contact your tenants regarding the available option. If the tenants choose to go ahead, we will carry out the switching process. Please contact our customer service advisors at admin@makeurmove.co.uk or 0333 8000 210 if you wish to offer Zero Deposit to your existing tenants.

Related Posts

No results found.