Are Zero Deposit Schemes The Way Forward?

Are Zero Deposit Schemes The Way Forward?

9:35 AM, 30th July 2019, About 4 years ago

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With all the adverse legislation now surrounding Tenant Deposit Protection I like to give my tenants another choice.

Guess which one they pick given this pitch?

“You need to pay one month of rent up front plus five weeks deposit. However, I can waive the deposit if you agree to pay an extra £20 a month of rent, because this will cover the costs of me buying a Zero Deposit Insurance Policy. Which do you prefer?”

As you might guess, most offer to pay an extra £20 a month of rent.

The risk to me is reduced because the insurance provides up to six weeks rent as cover. Furthermore, the £20 a month I charge also goes a long way towards the cost of a Rent Guarantee and Legal Fees Protection insurance policy, so that I get the rent whether the tenant pays or not, and the insurance company pays for the eviction costs if the tenant doesn’t pay the due rent. Obviously, this is subject to satisfactory referencing.

I arrange all of the above through, who also provide the following for an additional 5% of monthly rent + VAT.

  • Visiting your property, taking particulars.
  • Setting up an online system to store your documentation securely, so that it can be accessed at any time wherever you are
  • Advertising your property on the major property portals, Rightmove, Zoopla etc.
  • Organising block viewings
  • Referencing tenants and guarantors
  • Getting an inventory and schedule of condition prepared by an AIIC or APIP qualified inventory professional
  • Using the correct Tenancy and Guarantor Agreements
  • Taking meter readings on check in and check out and informing utility companies of tenancy change over
  • Protecting deposits and serving prescribed information and tenancy deposit certificates within 30 days of the commencement of each new tenancy
  • Arranging annual Gas Safety Certificates
  • Checking rental payments are received on the due date and taking appropriate action if they are not
  • Issuing the correct notices at the correct time and in the correct way as necessary
  • Responding to and dealing with maintenance issues quickly
  • Performing periodic inspections of your properties
  • Check Out at the end of the tenancy
  • Timely return of tenants deposit
  • Informing utility providers of tenant changeovers
  • Negotiating with tenants and dealing with ADR (Alternative Dispute Resolution) or Court cases if necessary


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