homes4u is the latest letting agency to sign up to the Zero Deposit scheme, a tenant’s deposit replacement product, designed to reduce financial pressures on renters, while also offering greater security to landlords.
The deposit replacement scheme, launched earlier this year, allows tenants to acquire an insurance policy in lieu of a deposit.
Tenants signing up to the scheme will be required to pay the equivalent of one week’s rent for a Zero Deposit guarantee, a regulated financial product that offers the landlord effectively the same cover as a six-week tenancy deposit.
Ben Harris, sales director at Zero Deposit, said: “We are really pleased that having reviewed the options available, homes4u chose to partner with Zero Deposit.
“Our partnership will further add to their aim of creating a stress-free experience to their customers by removing some of the barriers and pains points created with traditional deposits.”
Harris believes that for landlords, offering Zero Deposit gives the potential to attract a wider audience of tenants, increasing demand and reducing the time taken to rent.
Under the terms of the scheme, tenants remain accountable for any damage or unpaid rents, with any disputes over claims by the landlord handled by the Tenancy Deposit Scheme (TDS), which has an exclusive partnership with Zero Deposit.
Carolyn Mellor, owner and managing director at homes4u, commented: “We believe that the scheme will open up new opportunities for tenants currently unable to move due to up front costs, whilst safeguarding Landlords with no hidden risks.”
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Can't understand any landlord supporting a no deposit scheme. It's difficult enough to ensure tenants respect your property when they have a deposit to lose. If they leave my properties as found they get a prompt refund of the full deposit, so zero cost other than lost interest. These schemes add an unnecessary cost and raise questions over the tenants' commitment to look after my properties.
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