Tenancy deposit alternative Reposit has received an additional £500,000 from investors, taking its total raised since launch to nearly £1 million.
The extra cash will be used to scale the team and business across the UK’s rental markets including new products, say founders (LtoR above) Jude Greer and Brendan Short.
Its phone app and online based service enables tenants to take out insurance at a cost of one week’s rent to cover their landlord if they damage the property or fail to have it cleaned before they move out.
Each ‘Reposit’ is tied to the tenancy and property and is not portable, so tenants moving home must take out a new policy, although those with histories of good behaviour pay lower premiums.
Still classing itself as a ‘start-up’ despite having been in business for three years, Reposit says the investors include Andrew Weisz of Weisz Investments and Michael and Simon Blakey of Avonmore Developments, which also backs removal firm comparison site Buzzmove.
Reposit says it has also signed a deal with Lloyds of London underwriter Canopius through the Financial Conduct Authority’s Innovation Hub. It brings together players within the insurance industry to introduce new products and services to the market.
The Reposit service, which pays agents referral fees of between £25 and £75 per policy signed, also sells itself to tenants as a way to ease their personal finance cashflow problems.
Its own research shows that half of all tenants who paid a deposit said they borrowed the money for their deposit from friends, family and even loansharks.
Reposit has also claimed in the past that its internal data shows tenant behaviour improves when they use an insurance-based deposit replacement scheme. Many landlords and agents worry that such products encourage bad behaviour.