A Zero Deposit Guarantee can replace a traditional tenancy deposit, giving landlords the same cover and protection as having a tenancy deposit in the bank, whilst making renting more affordable for tenants.
Tenants pay the equivalent of one week’s rent for a Zero Deposit policy, which is non-refundable and gives you effectively the same cover as a 6-week tenancy deposit. Tenants remain fully accountable for any damages or unpaid rents.
In the event of any financial loss or damage due to you, this is settled by the tenant or if they dispute the claim the evidence is sent for expert evaluation. If found in your favour, we settle the claim with you and recover the costs from the tenants directly, along with any recovery costs. Non-payment by the tenant at this stage may impact on the tenant's credit history.
Why would landlords choose Zero Deposit?
- Speeds up the rental process: Zero Deposit helps tenants reduce the upfront cost of renting, which can help speed up the process and reduce void periods.
- Provides security and protection: A Zero Deposit Guarantee provides effectively the same cover as a 6-week tenancy deposit and is underwritten by Great Lakes Insurance SE.
- Helps to attract a wider audience: By giving you the potential to attract a wider audience of tenants, you can increase demand and reduce the time taken to rent.
- Supports accountable tenants: Tenants remain fully accountable for looking after your property and making rental payments, with us only making payment to you in the event of a fair claim at the end of the tenancy. Claim disputes are settled by The Dispute Service (TDS); Zero Deposit pay us and then pursue the tenant for reimbursement; we then pay you as soon as administratively possible.
- Reduces paperwork and hassle: A Zero Deposit policy is not a traditional deposit, so it doesn’t need to be registered with one of the deposit protection schemes, which can save landlords time and money.
To help make your property stand out to the widest possible tenant audience, speak to your local office.