A co-founder of deposit replacement scheme Reposit has been snapped up by rival brand Canopy.

Curran McKay, who left Reposit in August, a year after helping launch the warranty-style deposit replacement scheme, has now joined Canopy as director of business development.

Launched earlier this year, and backed by Experian and Direct Line, Canopy lets tenants make a one-off payment for an insurance policy from insurer Hiscox that covers the landlord for up to £30,000 and up to six weeks’ lost rent.

Each renter is given a Rent Passport that looks at personal information such as where they were born, their job, credit report, any sanctions as well as a negative media check, to determine how much they should pay for the insurance.

The cost of an insurance policy is not recoverable, as a cash deposit would be, but it can be reduced to as low as 5% based on good renter behaviour.

McKay will be responsible for increasing the uptake of the RentPassport.

Reposit worked differently as tenants pay a non-refundable fee of one week’s rent.

Reposit’s service then provides six weeks’ worth of cover to the landlord for damages, unpaid rent, cleaning costs and any other charges normally associated with deductions from a security deposit.

Tahir Farooqui, chief executive and founder of Canopy, said: “With a wealth of industry knowledge and connections, Curran will play a vital role in our development growth and to help complete our vision of improving the overall rental ecosystem.”

Curran McKay, director of business development of Canopy, said: “Since Canopy entered the market, I was impressed with the company’s proposition and market vision. I believe Canopy has the ability to re-engineer the rental property market and make it more suitable to today’s renters, landlords and agents.”