Nick Dunning Associates has partnered with Zoopla-backed Zero Deposit to offer tenants and landlords an alternative to the traditional security deposit.
The Zero Deposit product will be offered through the Townends letting agency network in London and the Home Counties, expanding into the Stirling Ackroyd network in September.
The product gives tenants the choice of purchasing a guarantee instead of having to pay a cash deposit. They pay a fee of one week’s rent to move into a property instead of the typical upfront deposit of six weeks rent.
A regulated product, Zero Deposit also has an exclusive partnership with the Tenancy Deposit Scheme to arbitrate any end of tenancy disputes.
Matthew Hewitt, commercial director at Nick Dunning Associates, said: “Zero Deposit’s offering will reduce the upfront cost of renting for tenants, which in London and the south east where rents are high, is a barrier to moving.
“With this method of deposit guarantee becoming increasingly popular, we wanted to partner with a reliable organisation to ensure we continue to provide tenants with an invaluable service, whilst also continuing to protect our landlords.”
Ben Harris, sales director at Zero Deposit, said: “We are excited that market leading agencies Townends and Stirling Ackroyd will be providing their tenants and landlords with our product, which really does benefit both parties.”
Comments (4)
We rent out a house as our daughters executors, and would appreciate advice. We have just received a check-out report with about 20 dusty, grubby, mouldy, missing, weedy comments. All minor, but need dealing with before the next tenant. Would this scheme adjudicator agree that the tenant should make good or pay from their deposit insurance? The scheme implies that a landlord has to negotiate with both
Interesting – no mention of the £26 admin fee payable by tenants aswell, and the liability for landlord’s costs. Suggest everyone read this report by Generation Rent (March 2018) :
http://www.generationrent.org/making_deposits_work_for_tenants
“New “zero-deposit” schemes, which charge a non-refundable insurance premium in lieu of the full deposit are, by and large, more expensive than simply borrowing the money for the deposit. They’re set up to make money from tenants, when tenants should be making money from the system”
Really…….. this firm made a news announcement when they sold 100 cases and now announce in the news when they win a customer. Desperate times I suggest, having read their investment prospectus, they are behind on every target. Classic corporate using other peoples money and leveraging vested interests, their biggest customers are investors! Beware and learn from Zoopla and Rightmove.
We have all seen how some insurance companies avoid paying out claims on small technicalities so such a scheme would not be that attractive to me as a landlord.