Our Lettings team has partnered with deposit replacement company Reposit, providing landlords with insurance cover for up to eight weeks’ rent. Compared to a cash deposit, this offers three weeks’ more cover.
In December 2018, the government announced deposits for rental properties would be capped at five weeks’ rent rather than six for properties where the annual rent is less than £50,000. Although this is welcome news for tenants, we understand this could potentially leave landlords out of pocket.
Using Reposit for deposit replacements provides landlords with a whole host of benefits:
- It’s free of charge
- It’s attractive for tenants, with over 65% of tenants choosing to use Reposit rather than a traditional deposit
- It provides up to eight weeks’ rent to cover your properties
- Other agents partnered with Reposit have reported a reduction in void periods by 14 days on average
- It has a 17% claim rate (13% lowerthan the national average) for deposit deductions
- In the event of a dispute, it guarantees an arbitration result within 14 days and to pay out agreed damages/rent arrears within 28 days
Reposit differs from a standard tenancy deposit in a number of ways:
- It is a replacement for the deposit paid by a tenant to secure a rental property. Instead, the tenant pays a fee equivalent to just one weeks’ rent
- It protects landlords. You will be added as a beneficiary to your insurance policy (underwritten by Lloyds of London). The policy provides you with the protection of claiming up to eight weeks’ rent if a tenant causes unreasonable damage to your property or has outstanding rent at the end of a tenancy and Reposit is unable to claim the funds within 28 days
- Tenants are still liable for any damages, cleaning the property and rent arrears. Just like a standard deposit, Reposit recovers payment from tenants when the tenancy ends (but the tenant pays after the claim, rather than before)
- If your tenant pays Reposit within the timeframe, you will receive the funds within 48 hours
- Tenants leaving a property with no charge against them will be rewarded with a lower rate the next time they use Reposit
We are members of The Property Ombudsman Scheme, Milford House, 43-55 Milford Street, Salisbury Wiltshire, SP1 2BP. Telephone: 01722 333 306. Website: www.tpos.co.uk. We are members of the Guild of Property Professionals' Client Monies Protection Scheme, Lonsdale Insurance Brokers Ltd.Back to Blog