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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