16:54 PM, 5th July 2013, About 8 years ago
We have recently experimented with a “move in free” business model for tenants.
We were asked to let several properties where the entire block had been purchased by investors. Only two were let and that was creating a stigma for the block so we needed to get creative.
The model we came up with was for the landlord to purchase a deposit warranty (underwritten by FCC Paragon) and also the tenants documentation fees. The total cost to the landlords was £400 which was a lot less than them suffering another months rental void. Some of these properties had sat vacant for three months already!
It worked 🙂
We let all of the properties within 24 hours!
Voids are costly to a landlord and by reducing the initial outlay to a tenant a property becomes more appealing. All tenants have to pass referencing, and the zero deposit guarantee covers up to two months’ rent. In the event of damage at the end of a tenancy the insurance company will pay out in 14 days and pursue the tenants for costs.
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