New insurance product takes place of tenancy deposit
A new insurance product has been launched which is designed to eliminate the need for a tenancy deposit.
Instead of paying a traditional deposit, which tends to be the equivalent of four to six weeks’ rent, under the warranty scheme tenants only pay an initial premium of between £100 and £150 which provides guaranteed payment against damage and non-payment of rent at the end of the tenancy.
The product has been launched by Landlord Assist, which says that for tenants, the absence of a deposit means they have to find far less money up front and allows them to move into their new property much quicker.
It also means they don’t have to chase up the deposit at the end of the tenancy.
It says that landlords should also benefit from the fact that their properties appeal to a wider market.
Stephen Parry, commercial director at Landlord Assist, said: “We think it’s a great alternative to the government approved deposit schemes, under which it can take over two months for disputed claims to be resolved.
“With the deposit replacement scheme, all claims are guaranteed to be settled within seven days so that landlords can carry out any necessary repairs almost immediately.”
The scheme is currently only available to landlords and letting agents who sign up to Landlord Assist’s tenant referencing service.