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PropTech firm launches ‘game-changing’ deposit alternative

PropTech company Reposit has launched a product allowing properties to be let on a deposit-free basis whilst ensuring landlords are protected for eight weeks of rent, and it's available via the Vouch app.

The Reposit product works by offering tenants the opportunity to forego the traditional upfront deposit payment of five week’s rent, and instead asks for a non-refundable service charge of just one week's rent. 

In return, Reposit covers landlords for damages, rent arrears, cleaning, and other costs normally covered by a cash deposit, up to the value of eight week’s rent, as opposed to the five week cap placed on traditional deposits.

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The deposit alternative - which can be managed online via the Vouch app - significantly reduces the administrative tasks agents are required to carry out as part of the deposit process. 

With Reposit, tenants remain liable for end of tenancy charges, just as they are with a normal deposit. Reposit takes on the responsibility to recover these costs from the tenant on behalf of the landlord or agent as part of the moving out process, significantly reducing the amount of End of Tenancy admin.

“Amidst the growing challenges landlords, agents, and tenants face as a result of the pandemic, we’re delighted to be partnering with Reposit to offer a reliable alternative to traditional deposit payments” explains Vouch director Simon Tillyer.

He continues: “Having compared a wide range of deposit alternative products currently on the market, we found that Reposit offers the most reliable, well-rounded cover for agents and landlords, and crucially stands to benefit everyone involved in the tenancy process.”

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    It would be good to know what backing this has, as 8 weeks rental cover would be better than the 5 weeks we are allowed to ask for by Law, but our tenants tend to stay for years and I would want to know that the "deposit" is available however long they stay and if this organisation goes out of business. At least with a deposit I know where it is if I need it (although it can be a time consuming business to get it out of the DPS if in dispute or missing tenant).

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    I wouldn't trust outfits like this no further than I can spit.

     
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    Reposit is in place for the duration of the tenancy, we are backed by a Lloyd's of London underwriter and we are FCA and FSCS protected. This means that if Reposit goes bust, the insurer is still committed to payout on the policy and if the insurer goes bust the FSCS would step in. Of course, these are very unlikely events.

     
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    Can't afford deposit = can't afford rent = no chance of renting from me, but thanks for the warning!

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    We receive the same % of rent arrears claims as is seen in the wider market. So our data shows that Reposit tenants are just as reliable as tenants who have paid a cash deposit. Plus if rent arrears do occur landlords have more protection with Reposit.

     
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    No smoke without fire. Save up the standard deposit and no alarm bells ringing. Don't save a deposit = don't waste my time and tenants' breath in asking me for a tenancy.

    No deposit schemes always cost money, The loss of interest potentially gained by lodging a proper deposit is minuscule and good tenants get full refunds.

    Any tenant willing to squander money on no deposit schemes isn't the kind of tenant I would be comfortable in entrusting with a six figure asset, achieved through avoiding unnecessary high cost schemes like no deposit schemes, fancy phone contracts, credit card, overdraft or car loan/lease interest charges etc.

    Mortgages are sensible loan schemes within affordability limits. Almost all other schemes are for the less financially astute.

     
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    Lies, lies and statistics Hello Reposit! :)
    You're selling a product, so you are going to churn out the ones that suit your narrative.
    The reality is the insured deposit simply hasn't taken off like we thoughts it might. Whether 'Hello Repost' likes it or not, Robert Brown is 100% right.

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