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16 May 2019

Concerned by the impeding tenant deposit cap? Get 40% more financial security with Romans!

Author: Grace Watson

Landlords get two weeks’ additional security with our unique No Deposit Option!

From 1st June 2019, landlords in England whose property generates £50,000 or less in annual rental income will be limited to accepting 5 weeks’ deposit for new and renewed tenancies. As a result, hundreds of thousands of landlords across England and Wales will be left with less security and, potentially, out of pocket should their tenants fall into rental arrears or cause damage to their homes.

In response to this change in legislation, Romans is able to offer landlords a secure alternative – indemnity for the equivalent of 7 weeks’ rent – through our No Deposit Option.

What is the No Deposit Option?

Our innovative scheme is designed to ease the financial burden placed on tenants. As opposed to paying the new standard 5 weeks’ deposit upfront, tenants can move into their new homes deposit-free, instead opting to pay a monthly deposit contribution.

 

How will the No Deposit Option package for tenants benefit me, as a landlord?

Without having to collect a deposit from your tenant upfront, we can move tenants into your property more quickly, which reduces void periods. In addition, the No Deposit Option model attracts a wider range of prospective tenants as more people are able to afford to rent if they no longer need to find a hefty deposit. We are the only agent in the UK offering this model and, as a result, we have seen a rise in tenants interested in renting with us.

The rest of the tenancy set-up period remains much the same. Your tenants will still be referenced, with all necessary checks completed including Right to Rent and guarantor referencing. In addition, the scheme offers your tenants the opportunity to build up a positive credit score based on their rental payments, meaning the risk of rental arrears is reduced.

Is there any additional cost to prospective tenants wanting to take the No Deposit Option?

Romans will indemnify you for any damage or dilapidations arising under the tenancy, provided the limit of indemnity will be a sum equivalent to 7 weeks’ rent (a 40% uplift on the standard 5 weeks’ deposit contributed by non-NDO tenants). This indemnity would be used to cover dilapidations and damage first, with the surplus used for arrears if this is applicable.

 

Will you still provide an inventory?

Yes, an independent detailed inventory and schedule of condition will be provided at the start of the tenancy to protect your interests.

Can my tenant still make an advanced payment?

Yes, for a duration of 6 or 12 months. The cost of this service is then taken in advance for the same duration.

The best part? You’ll receive all the benefits of our No Deposit Option, including our additional two weeks’ security, completely free of charge when you instruct Romans on our managed or rent collection tariffs!

To find out more about our No Deposit Option, contact your local lettings team on 01344 985 870.

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