Flatfair sees record uptake as tenant deposit alternative gains traction

Flatfair sees record uptake as tenant deposit alternative gains traction

6:02 AM, 16th May 2024, About a month ago 4

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Deposit alternative provider flatfair is celebrating a record-breaking first quarter of 2024, with a significant rise in tenants choosing its No Deposit option.

The firm says the surge is down to the increasing affordability challenges facing tenants because of rising rents.

From January to March, flatfair says it recorded its highest figure to date as 56% of tenants chose the no deposit offering over a traditional deposit when they were offered the two options side by side.

Average five-week traditional deposit

Chief executive, Gary Wright, said: “According to research from Homelet, rents were 7.9% higher than the same period last year. That means the average five-week traditional deposit rose to £1,617 – higher than ever before.

“flatfair tenants, however, were able to save £1,300 on their upfront move-in costs by using our deposit alternative at a time when the cost of living continues to impact affordability.”

He adds that growing numbers of landlords are also offering a deposit alternative choice on their properties.

Landlords experiencing late payments

The firm also says that research is showing a rise in rental arrears, with more than a third of landlords experiencing late payments.

In addition to landlords, letting agents are also finding benefits with an offering that streamlines tenancy creation to save valuable time.

And flatfair says it helps agents avoid compliance fines associated with traditional deposits by automating the registration process.


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Comments

David

11:01 AM, 16th May 2024, About a month ago

what a surprise, tenants are choosing no deposit Flatfair.
My agent sold me on accepting this but i found there was nothing fair about.
Tenant claimed a hob just mysteriously cracked, even though the inventory check in stated no problem.
Flatfair totally agreed with the tenant, not even offering me 50%.

Reluctant Landlord

14:19 PM, 16th May 2024, About a month ago

Benefits of no personal deposit will always favour the tenant never the landlord.

If tenant is genuine then they can put their own money down.

I understand that if they are moving from one rental to another then there may be a period when the last deposit is not released before the new rental deposit is required, but that's part and parcel of renting. If you are moving rentals for choice then you factor that in.

Its only going to be the tenants that don't move for choice (are evicted!) that will want to use deposit schemes like this because they have no choice. That gives you straight away the indication of the calibre of the potential tenant....

Avoid!

GlanACC

16:50 PM, 16th May 2024, About a month ago

I have never taken deposits, I have got burned a couple of times.

Having said that, I quickly learned not to take people on housing Benefit.

If I were letting now I would take deposits and would not take any using deposits paid by the council or these flatfair type schemes.

PAUL BARTLETT

10:05 AM, 18th May 2024, About a month ago

The TDS provider is deeply biased to tenants so one to avoid IMHO:
Applies avoidance of betterment to the extreme.
Has no idea on the true cost of restoring property condition.
Has a No Appeal policy to their judgement

AVOID!

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