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Landlords win with Zero Deposit

CEO and Co-Founder of Zero Deposit, Jon Notley, explains how agents can give added value to their landlords with the UK’s only FCA-regulated deposit replacement guarantee.

Jon Notley

Link to Zero Deposits adWe understand the critical nature of the relationships letting agents have with their landlords and we have seen Zero Deposit deepening and adding extra value to that connection. This is why we’re delighted to announce our exclusive partnership with the National Landlords Association (NLA). From August, the Zero Deposit Guarantee is the only deposit replacement product the NLA recommends to its members.

This new relationship gives Zero Deposit unrivalled access to over 40,000 landlords, many of whom will work closely with readers of this magazine. This partnership means more landlords will be aware of the benefits of the Zero Deposit Guarantee and the importance of FCA regulation in the burgeoning deposit replacement market. We know that’s important to you and this independent endorsement matters to landlords.

We have looked very carefully at this market and considered the various products available. Zero Deposit is the best organisation to recommend to our members, because they had thought through and answered all the issues, and gave us the reassurance that both the company and the product were regulated by the FCA. Richard Lambert, CEO, National Landlords Association (NLA)

Richard Lambert, CEO of the NLA says, “We have looked very carefully at this market and considered the various products available. Zero Deposit is the best organisation to recommend to our members, because they had thought through and answered all the issues, and gave us the reassurance that both the company and the product were regulated by the FCA.”

Our starting point for Landlords

Jon Notley

Traditional deposits can slow down the rental process – and in the worst cases lead to tenancies falling through. It’s the reason Zero Deposit came to be: to provide an affordable alternative for tenants when moving. To make the product attractive for landlords, who also benefit from faster renting and reduced bureaucracy, we have created a product that is as secure as a traditional deposit. It also gives landlords extended cover and ensures that tenants still have ‘skin in the game’.

Paul Deveney, Director, Acorn Group says, “Once a landlord understands the offering, the fact that the tenant still needs to pass affordability checks and will still be personally liable for any damage at the end of the tenancy, it really becomes a no brainer, given they will receive more cover than a traditional cash deposit along with the added protection put around the product.”

Why this works for landlords

Safe as cash: Our product is a guarantee, underwritten by Great Lakes Insurance SE, part of the Munich Re Group, which the tenant purchases for their landlord and which provides the equivalent security for landlords as a six-week cash deposit. Once in place, the guarantee remains for the lifetime of the tenancy – up to a maximum of 10 years. Zero Deposit is regulated by the FCA, and comes with all of the protections that entails, including the Financial Ombudsman Service and the Financial Services Compensation Scheme.

Deposit protection: Our next challenge was to ensure that landlords felt they would not be disadvantaged at the claims stage. We are partnered with The Dispute Service (TDS), who resolve any claims disputes. If, at the end of the tenancy, the parties do not agree on any claim made by the landlord, evidence goes to TDS as it would with a cash deposit, and we pay the landlord within two working days of receiving TDS’s decision. Our guarantee covers claims for up to six weeks’ rent, so with the recent capping of most cash deposits to five weeks, landlords get more protection under a Zero Deposit guarantee.

Skin in the game: Only those tenants who have been offered the tenancy on standard terms, with monthly rent payments and a normal deposit, can be offered Zero Deposit, so landlords remain in complete control of the quality of their tenants. Additionally, tenants remain fully accountable for the landlord’s property. In the instance that their tenant does not meet their obligations at the end of the tenancy, we will step in and pay on their behalf. Once we have paid a landlord, we collect from the tenant.

Let’s get started

Our partnership with the NLA is another big step in establishing Zero Deposit as a new way to approach renting and further establishing the Zero Deposit Guarantee as the landlord product of choice.

If you’re not on board, let’s get started at zerodeposit.com

 

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