Zero Deposit has signed an exclusive partnership with the Residential Landlords Association (RLA) to be its sole recommended alternative rental deposit product.
The company has also revealed that during May it has covered more than 1,750 tenancies and provided £2 million in cover to landlords.
Zero Deposit’s guarantee will now be available to the RLA’s 35,000 landlord members to offer their tenants, who pay the equivalent of a week’s rent in return for not having to stump up a full cash deposit.
This will include the platform’s claimed advantages over its competitors and traditional deposits. These include speeding up the rental process and offering landlords more protection than a cash deposit. Although the tenant fees ban due to go live tomorrow (1st June) will restrict cash deposits to five weeks’ rent, Zero Deposit’s product offers six weeks’ rent cover.
“Since launching in February 2018 our deposit replacement guarantee has proven to be incredibly popular with both landlords and tenants – with several thousand already signed up,” says Jon Notley, co-founder and CEO of Zero Deposit (left).
“We also welcome the RLA’s decision to partner with a product that is fully regulated by the FCA, with safeguards in place for both landlords and tenants.
“We have recently witnessed other deposit replacement providers enter the marketplace, some of which do not offer the protections of FCA regulation and who are, in our view, opening up this new market to risks of mis selling and ripping customers off.”
Read more about Zero Deposit.