Charging an extra week’s rent to buy deposit insurance?
8:24 AM, 19th July 2022, 4 years ago
2
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Hi everyone, A friend of mine who owns a small portfolio of let houses like me has asked me if I know anything about Reposit.
As far as I can glean, this company instead of taking a deposit charges an extra week’s rent which is used to buy an insurance policy.
Have any readers had experience of using Reposit, and if so, what are their views on the system used by this company?
Many thanks
David
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Member Since November 2020 - Comments: 89
9:12 AM, 19th July 2022, About 4 years ago
I have not used Reposit, but have a couple of tenants that used Flatfair as the deposit, a similar insurance I assume. Each tenant on the AST joins the scheme and pays a fee based on the monthly rent. I have just extended for one as they have gone onto a periodic rent. Have never had to make any claim yet so cannot say if these schemes are any good.
Member Since December 2018 - Comments: 95
10:38 AM, 19th July 2022, About 4 years ago
Reposit is NOT an insurance policy it is a scheme. They charge the tenant 1 weeks rent as a fee and they then indemnify the Landlord for 6 weeks rent. Should there be any deductions at the end of the tenancy they use their own in house adjudicators to negotiate with the tenant. Any monies paid to the landlord by Reposit are then recovered by Reposit from the tenant. I repeat it is NOT insurance and should not be sold as such.