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Latest no-deposit scheme pledges landlords won’t be out of pocket

Another no-deposit renting scheme has been launched, pledging to make life easier for landlords and tenants. 

Rental guarantor service Housing Hand’s new product - called Depositless - allows tenants to move into a property without paying a deposit if they are already using or applying for its guarantor service - a facility which can be used instead of a personal guarantor.

Tenants pay an initial fee of £25 and then the equivalent of 20 per cent of one month’s rent over the remainder of the tenancy alongside their rent. 


Housing Hand claims this is a unique and superior alternative to other no-deposit services available to the rental sector, chiefly because it is a guarantee rather than an insurance. 

With most existing schemes, the tenant typically pays a non-refundable fee instead of a traditional deposit of five or six weeks’ rent.


Housing Hand sales and business development head James Maguire says: “There are a number of deposit alternative products on the market, in particular insurance bonds that are limited in their scope and coverage and that only pay out at the end of the tenancy. We wanted to go above and beyond those – to offer something that would be better for renters and better for accommodation providers.”

And Terry Mason, the group operations director, adds: “This is a new approach to deposits. By extending our guarantee cover to include deposits, we are providing clear reassurance to landlords.

“We’re also facilitating access to the private rented sector and to purpose-built student accommodation for young people who might otherwise have struggled to come up with the amount required for a deposit.”

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    But would they pay out in the event of a claim or would they be looking for any loop hole they could find not to, bit like cheap car insurance, no I'll be sticking with the deposits and a bit extra on the rent where there is a pet


    Same here Andrew. Another business advantage on the backs of landlords.

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    Not yet another Deposit Scheme what for.
    Why not let the LL have his Deposit to protect his Property. Which is what it was meant for, not this rubbish of protection the Deposit itself adding another burden on the LL. That’s why I have to forego £24k Deposits in preference to those useless schemes impinging on your rights and undermining Section 21.
    I don’t see any of those guys jumping to set up Rent Guarantee Schemes.

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    More to the point, the tenant will be paying 20% extra each month. With rents going up as they are currently, how can that be affordable? It would be better to allow a 2 month deposit as at least they have a chance of getting it back at the end of the tenancy.



    Absolutely right. No deposits schemes have 3 big flaws for tenants:

    1. They are guaranteed to lose money whereas they should get their full deposit returned if they stick to the rental agreement. This demonstrates a lack of financial acumen and warns of potential future money problems - so they won't be renting from me.
    2. If tenants don't have enough faith in their ability to look after my property properly and put up their own money to give me such faith, they won't be renting from me.
    3. If tenants can't afford the deposit they can't afford my rent, so they won't be renting from me.

    In fact, the headline is absolutely right. No deposit schemes won't leave me out of pocket - but they will always leave tenants out of pocket!

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    Emily, exactly right and didn’t they always get their Deposit back when they looked after the Place. I never failed to give Deposit ever even when there was obvious damage and we always finish on good terms, at least we knew when they were leaving not getting behind with rent and disappearing
    How can Rents go up when they can’t afford it now, reality check please, come down off that cloud.


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