Deposit Alternative scheme chosen by letting agents’ trade group

The Guild of Property Professionals has entered into a partnership with one of the many deposit replacement services now available.

It’s teamed up with Zero Deposit, and according to Guild chief executive Iain McKenzie 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.”

McKenzie claims that although 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. Should a claim arise, once liability has been determined and banking details have been provided, the landlord will receive their settlement within two working days. 

"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" says Sam Reynolds, the Zero Deposit chief executive.