The Guild of Property Professionals has recently partnered with Zero Deposit™, to bring all the benefits of a market leading and FCA regulated deposit replacement guarantee to its Members. According to Iain McKenzie, CEO of The Guild, the partnership will help to enhance letting agent’s offering, by providing landlords with a six-week security on their rental property and removing a barrier to entry for tenants.
“Rather than paying a traditional security deposit, tenants can purchase a Zero Deposit Guarantee for a lower upfront cost equivalent to one week's rent plus a £49 set up fee, and then £17.50 each year. By reducing the upfront cost for renters, Zero Deposit helps speed up the process of getting new tenants in and reducing void periods for landlords. With a Zero Deposit Guarantee there is also no need for agents to collect and protect money from tenants anymore, which means they do not have to be concerned about the prescribed information rules applying to cash. Once the tenant has passed referencing, the agent can introduce them to Zero Deposit, who then contact the tenant to complete the process. Once purchased, the agent, tenant and landlord will receive the guarantee documents and the tenancy will be fully protected,” says McKenzie.
He adds that by removing the barrier of a traditional cash deposit, agents open a whole world of trustworthy tenants ready to move in right away. “Offering a no-deposit option will boost demand by widening the potential selection of tenants who can afford the rental but may not have a deposit in hand. Of those polled, 96% of tenants said that they would select a Zero Deposit agent above the rest, which also means that it will give agents a competitive edge over their counterparts who are not offering landlords and tenants this alternative,” McKenzie comments.
While some landlords may be concerned that tenants will take less care of the property if they do not have to pay a deposit, they can rest assured that tenants remain liable for any financial loss or damage as set out in the tenancy agreement. Also, landlords are covered for the value of up to six weeks’ rent, higher than the usual cash deposit which is capped at five weeks. Also, in the instance a claim arises, once liability has been determined and banking details have been provided, the landlord will receive their settlement within two working days. Zero Deposit's unique partnership with The Dispute Service (TDS) means that disputed claims are reviewed by the same people as with a cash deposit.
Zero Deposits will ensure that tenants have all the information they need on the scheme, including their ongoing liabilities in order that they can make an informed choice on selecting either a traditional deposit payment or for a zero deposit scheme and offers full transparency for tenants.
Zero Deposit Guarantees are underwritten by Great Lakes Insurance SE, part of Munich Re, one of the world's largest re-insurers. As the product is regulated by the FCA, landlords have recourse to the Financial Ombudsman Service and protection under Financial Services Compensation Scheme.
"We're naturally delighted to partner with The Guild as their exclusive deposit replacement partner and work closely with their members to bring the benefits of deposit replacement to life. We're proud of making renting easier, faster, and fairer for close to 100,000 tenants while providing extra protection and security for landlords when they need it most." Sam Reynolds, CEO, Zero Deposit
For more information about no-deposit options contact Zero Deposits on 0333 200 2541.
 Source: Internal data, August 2020 - Survey of 243 tenants
 Source: Internal data, August 2020