Renters lose millions in cleaning deposit deductions
2 years ago | 11 comments
Flatfair sees surge in deposit-free tenancies
12:01 AM, 27th June 2024, 2 years ago
3
A deposit alternative specialist says it has seen a big rise in the take up of deposit-free tenancies, with a 30% year-on-year increase in May.
This surge comes as students prepare for the new academic year, facing a combination of rising rents and a shortage of rented accommodation.
Flatfair says one agent processed 170 student tenancies which saved students hundreds on move-in costs while reducing their own administrative burden.
Also, 14% more landlords are using its No Deposit product compared to the same time last year.
Avoid the traditional deposit
Flatfair’s service allows tenants to avoid the traditional deposit, typically up to five weeks’ rent, by paying a smaller fee of a week’s rent plus VAT instead.
In May, the average flatfair tenant saved £1,243 on upfront moving costs – as rents and deposits increase.
According to the Save the Student 2023 National Student Accommodation Survey, students are moving into the PRS because of the higher bills in university halls of residence.
Mr Wright said: “Over the next few months, hundreds of thousands of students across the country will be on the move before the start of the new academic year.
“Most of these hard-pressed renters will be wanting to keep their moving costs as low as possible and the agents they deal with will want to process their tenancies as quickly and as efficiently as possible.”
Tags:
Cost of Living Crisis, deposit-free renting, flatfair, letting agent efficiency, student rentals
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Member Since July 2013 - Comments: 754
10:58 AM, 27th June 2024, About 2 years ago
Seemingly a self serving ‘puff’ piece, and interestingly notes just the convenience and cost saving for renters and agents, not for LLs.
As a LL, I want to know that the tenant is ‘invested’ in the tenancy and has their own money at risk for damage or non compliance.
Before I agree to a no deposit option, I’d be interested to know the experiences and stats from LLs recovering the appropriate deposit reimbursement from this or any similar offerings.
Have other LLs used them, successfully or otherwise?
Member Since September 2018 - Comments: 3538 - Articles: 5
1:33 PM, 27th June 2024, About 2 years ago
if tenant can’t afford the deposit themselves, then that says it all. In the current market a LL is more liable to be taken for a ride (and be out of pocket) where he/she agrees to any form of deposit scheme which clearly only serves to make it easier for the tenant to gain a property. Straight away that tells you where the balance of power is drawn already…
Avoid!
Member Since September 2013 - Comments: 120
7:33 PM, 27th June 2024, About 2 years ago
I have never taken deposits, mainly because my tenants tend to be students and I run 8 + bedroom HMOs. I do ask for 2 months rent in advance however. Since the students are generally fairly hard on furnishings and fittings, I tend to do most of the repairs and decorating myself or with a trusted tradesman. The furnishings are usually good quality second hand items however, so they do not cost a lot to replace. The terms are 11 months, which gives me August to do the necessary re-furbs. I tend to keep dealings with Councils and regulators to a bare minimum, hence the non-use of deposits, which are another head-ache inducing layer of bureaucracy.