Blog
It’s a win-win with a Zero Deposit Option
Wednesday, September 18, 2019
Rent faster, reduce void periods and increase the deposit from the maximum 5 week level cash deposit to 6 weeks whilst keeping the same protection as a traditional security deposit. Those are some of the benefits landlords receive from instructing a letting agent that offers a Zero Deposit Option to tenants. For tenants the Zero Deposit Option helps to reduce the upfront cost of renting, and can speed up the whole process by minimising paperwork and hassle – a win-win for all! So how does it work?
Tenants make a payment equivalent to one week’s rent for a Zero Deposit Guarantee and the paperwork is generated with copies sent to all parties. • Tenants remain fully accountable for the property and for making rental payments
• At the end of the tenancy the inventory and check out are completed and if the tenants leave the property in a satisfactory condition with no outstanding bills or rent, the Zero Deposit Guarantee expires with no further action required.
• In the event of any financial loss or damage to the property, this is settled by the tenant or, if they dispute the claim, the evidence is sent for expert evaluation via Tenancy Deposit Scheme (TDS). Less than 1%* of tenancies end in full dispute (*source TDS April 2017).
• If the TDS find in in the landlord’s favour, the claim is settled with the landlord within 3 working days, and any costs are recovered directly from the tenant along with any recovery costs. Non-payment can adversely affect a tenant’s credit history.
For more information on how our Zero Deposit Option can work for you, please contact your local Frost office.
