A new deposit-less renting service claims to go above and beyond other deposit alternatives on the market to make life easier for both tenants and landlords.
Rental guarantor service Housing Hand’s new product for working professionals, UK and overseas students covers all valid claims immediately, with a 100% pay-out rate, giving landlords reassurance that they won’t end up out of pocket if the tenant defaults on their rent.
Renters can choose to move into a property without paying a deposit if they’ve already applied for its guarantor service, which renters use in place of a personal guarantor.
Tenants pay an application fee of £25 then the equivalent of 20% of one month’s rent paid in small chunks, every month, in line with their rent.
Housing Hand says there are a number of deposit alternative products such as insurance bonds that are limited in their scope and coverage and only payout at the end of the tenancy.
Terry Mason (pictured), group operations director, adds: “This is a new approach to deposits. By extending our guarantee cover to include deposits, we are providing clear reassurance to landlords.
“We’re also facilitating access to the private rented sector and to purpose-built student accommodation for young people who might otherwise have struggled to come up with the amount required for a deposit.”
With most deposit replacement schemes, the tenant pays a non-refundable fee instead of a traditional deposit of five or six weeks’ rent – in either a monthly or yearly fee; while tenants are still liable for damage at the end of their tenancy, unlike a traditional deposit, they pay a smaller initial amount but don’t get it back.
Read more about deposits.