Reposit - An Alternative to a Traditional Tenancy Deposit

A blog explaining our Reposit scheme offering written by Mark, our Property Maintenance Coordinator

One of the conversations I have with Landlords is their frustration in a 5-week capped deposit. If rent is not paid for the final month of a tenancy and if there are damages, it does not leave much deposit to recover costs. This is a worst-case scenario, but it is always good to be prepared in our line of work. Therefore, we started offering deposits for tenants with Reposit in 2019 and have been one of the first Letting Agents outside of London to trial this alternative to clients.

The premise of Reposit is to offer an alternative to the usual 5 weeks equivalent of rent deposit. The idea came from London based Letting Agents and landlords as deposits for tenants are a lot higher in London when based on 5 weeks rent.

The criteria for a Tenant to qualify for Reposit is strict as the Tenant will need to agree to their terms and conditions. In essence, Reposit is an insurance scheme which is FCA regulated and offers the landlord up to an 8-week equivalent in rent as a ‘deposit’, 3 weeks higher than the standard.

The advantages to the landlord are a larger deposit and Reposit will pay the amount claimed out to the landlord (subject to arbitration if disputed by tenant, in the same way as a Deposit Scheme). Once paid out to the agent or landlord, Reposit will chase the tenant for the funds and take legal action against the tenant if not paid.

Reposit conduct to much stricter guidelines than a traditional deposit scheme as they undertake the legal action in event of unforeseen circumstances with the client, for example rent not paid or property damaged. Traditionally it would be up to the landlord to conduct legal action, all after the traditional 5-week deposit has been arbitrated and paid out by the dispute service. The most popular advantage we find with Reposit is the speed to arbitrate and pay the funds. Generally, there would be 21 days for the amount to be raised (with evidence and contractor quotes) and we often find the whole matter resolved completely in just over a month.

The tenant would enter an agreement with Reposit paying the equivalent to 1 weeks rent to set up the account. In addition to this, the Tenant would pay a yearly renewal fee to Reposit with no costs to the Landlord. We are finding the scheme to be very popular with more and more Landlords offering this as an option to their Tenants. There are no costs to the Landlord with the Reposit scheme and all that is required is to set up an account just as you would with any deposit service. The results have so far been positive with quicker on boarding times and the amount of deposit is generally higher for the landlord.

Specialists in helping new landlords rent their properties, Emsleys Lettings are here to help. From valuations to providing fully managed services, we’re only a phone call away. Enquire today about how a Reposit scheme can increase your rental opportunity.