TDS backs Zero Deposit

TDS backs Zero Deposit

1:01 AM, 4th September 2017, About 6 years ago 6

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Tenancy deposit protection and dispute resolution company The Dispute Service (TDS) today (Monday September 4) announces a long-term strategic partnership with Zero Deposit, a new company which aims to help tenants by replacing the traditional tenancy deposit with an affordable insurance policy.

TDS has entered into an exclusive contract to provide dispute resolution services to Zero Deposit, run by former ZPG chief commercial officer Jon Notley, when it plans to commence trading later in 2017.

TDS, as one of the UK’s leading providers of deposit protection, is the longest-serving and most experienced provider of adjudication services in tenancy deposit disputes. As part of its strategic partnership with Zero Deposit, the Hemel Hempstead based company has made an investment in the new business and takes a seat on the board.

Deposit replacement insurance products involve tenants buying an insurance policy in lieu of a deposit which guarantees to landlords any approved losses incurred as a result of action by the tenant up to a specified value. Tenants remain fully responsible for any damage or outstanding rent payments at the end of the tenancy, but the landlord is protected in case these debts are not honoured by the tenant, with Zero Deposit paying the landlord within 48 hours of the disputed claim being accepted or confirmed by TDS.

Steve Harriott, Group Chief Executive of The Dispute Service, said: “While deposit protection is the core of TDS’s business through our insured and custodial schemes we recognise the merits of a different kind of scheme where no deposit is taken and one that addresses the affordability/mobility issues that may arise with deposits.

“Whatever option tenants, landlords and agents choose, we are determined to ensure that claims can be assessed with impartiality and professionalism. Our experience of dispute resolution and the robust procedures that we follow make us well placed to support this new direction in tenant deposit replacement.

“We chose to partner with Zero Deposit as it is a credible scheme with a number of agents already committed as launch partners. It has raised a significant sum of money in start-up capital and has the backing of Munich Re as the insurer.

“We feel that Zero Deposit’s ethos mirrors our own: their approach is open and transparent for tenants and provides assurance to landlords that they will be able to claim for any losses”

Jon Notley, CEO of Zero Deposit, said: “To have TDS with us as a launch partner is an incredibly important development. The TDS team have unparalleled experience of deposit protection and dispute resolution and their knowledge of the intricacies of the private rental sector gives us a significant edge on our competitors.

“With a company as trusted and respected as TDS providing our adjudication services, tenants, landlords and agents using our new product can be assured that any end of tenancy disputes can be dealt with professionally and fairly.”

The announcement of this strategic partnership with TDS follows the news that Zero Deposit had entered an exclusive, global insurance partnership with Munich Re, agreed a long term promotional deal with Zoopla and had received the financial backing of leading investors including Jamjar, the venture fund set up by the founders of innocent drinks, and Grenville Turner.

Along with a highly-experienced management team, and with further partnership announcements planned in the coming weeks, we believe Zero Deposit is well placed to lead the deposit replacement market following its planned launch later in 2017.

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Dylan Morris

12:46 PM, 4th September 2017, About 6 years ago

The issue I have with this type of insurance scheme is the tenant has not put any of their own money forward, hence has nothing to lose and therefore no incentive to look after the property. When they eventually leave they have nothing to claim back, essentially no "skin in the game". A tenant who can afford the first month's rent upfront along with the deposit, is better than one that's skint.

Chris Novice Shark Bait

13:15 PM, 4th September 2017, About 6 years ago

I formerly used the none custodial my-deposits but they charged fees and renewal fees. I currently use D.P.S. and prefer the custodial route. What fees will TDS be charging the landlord for such a zero deposit, insurance based option? Anyone know?

Dylan Morris

15:33 PM, 4th September 2017, About 6 years ago

Reply to the comment left by Chris Novice Shark Bait at 04/09/2017 - 13:15
I have always used the DPS and been very happy. Doesn't cost me a bean as it's a free service.

Chris Novice Shark Bait

15:55 PM, 4th September 2017, About 6 years ago

Thanks Dylan,
You agree with me therefore, but does anyone know the cost implications for landlords in the newly suggested scheme?

Paul Green

2:13 AM, 5th September 2017, About 6 years ago

Sorry don't no the fee, but you can bet the shareholders are rubbing there hands together and opening off shore accounts too stash there money tax free. I would say it will be expensive for the landlords. I've used the DPS for free for the last 14 years....
I'm not giving the keys of my homes, to know one without one month's rent in advance & approximately 6 weeks rent for a deposit . This still does not cover a whole host of costs, if you get a bad tenant. Like Rent arrears, damage, new carpets. Redecorating, solicitors legal fees, court costs, bailiffs. Locksmith. Recovery of money by traceable company. ECT

Paul Green

2:15 AM, 5th September 2017, About 6 years ago

Forgot to mention I think a deposit should be at least 2 months rent or a minimum of £2000 which ever is the higher.....

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