James Douglas partners with deposit free option company
Reposit, is an alternative to a traditional deposit offering tenants a deposit-free way of renting. There was a need in the rental market to provide another solution to an up-front cash deposit when securing a tenancy, as some tenants can find this financially constraining. Often tenants struggle pay first months rent, a bond deposit, house/content insurance, utilities and removal-van fees all at once, and therefore Reposit has disrupted the traditional deposit route and are helping tenants move with less of a financial burden.
Reposit was founded in 2015 and is the longest-running deposit alternative provider, James Douglas along with their partnered company, Seraph Property Management are now offering a deposit free option on all of their properties to help both tenants and landlords, which in turn can provide further flexibility to both tenants and landlords.
How does this benefit tenants?
With the average deposit in Wales being £1,041, tenants can benefit by avoiding paying a much larger sum upfront and instead pay the equivalent of one week’s rent. This is a non-refundable fee that covers the tenant of up to 8 weeks rent. Tenants also do not have to go through the process of requiring getting a deposit back from the end of the tenancy and providing there are no discrepancies at the end of the tenancy. They can also have this renewed every year for a fee of £30. Research has found that tenants often borrow from family, take loans, or payday loans in order to a pay a bond, especially when moving in between properties as tenants will be required to pay a deposit for the new contract before the previous deposit has been released, which causes further cash flow problems and stress.
How does this benefit landlords?
Landlords will benefit by being able to receive up to 8 weeks rent, which is higher compared to the traditional deposit schemes, which in England is currently capped at 5 weeks. They could find an increase when advertising their property if prospective tenants are aware that they can reduce upfront costs, it may even help tenants move in faster, as they can sign up to Reposit instantly which ultimately can help reduce void periods. In addition, landlords can receive higher coverage than a cash deposit, as well as the 8 weeks cover, it found a smaller percentage of tenancies end in a claim when using Reposit.
Benefits to both
- All disputes are handled by independent dispute specialists with years of experience
- Regulated by the Financial Conduct Authority
- Fast claims process
- Can be extended
- Backed by Canopius, a leading insurer
More information on Reposit can be found on their website, or pick up a brochure in one of our branches.