Recent legislative changes mean that tenancy deposits are now capped at an amount equal to 5-weeks’ rent. Whilst this is usually enough to deal with most end-of-tenancy issues, some Landlords may wish to have additional cover.
We have recently teamed up with Reposit in order to offer an alternative for traditional deposits. If you opt-in to use this service, a Tenant will have the option of taking out an insurance policy which costs the equivalent of one week’s rent and in turn this provides you with eight weeks’ deposit protection at end-of-tenancy. This benefits a Tenant as the moving process becomes more affordable and accessible. For Landlords, you have the benefit of an insurance cover that protects your house from unreasonable damage and rent arrears when the tenancy ends far in excess of the new legal maximum deposit. But without the immediate financial responsibility, does this mean a Tenant is less likely to look after a property?
Reposit has thought about this: Tenants are incentivised by being offered cheaper rates to Tenants with no claims history. There are also charges for Tenants if an adjudication is needed, which discourages Tenants from raising needless disputes. Not only that, but their credit score is at risk if any deductions are made from their Reposit. Strict deadlines at the end of a tenancy for decisions to be made also assist with finding a speedy resolution to any issues raised.
Interested to know more? When we next market your property, speak to a member of the team about the Reposit service!
