Zoopla-backed Zero Deposit is set to be promoted across the portal as part of a new advertising campaign agreed between the businesses.
The deposit replacement scheme, founded by the Zoopla’s former commercial director Jon Notley, has launched a marketing campaign that will see Zero Deposit adverts appear between lettings listings across the website.
Connells, LSL, Knight Frank and Acorn Group are all signed up and have invested in the Zero Deposit business, but there are already agencies using other providers such as Hamptons International working with Canopy or Sowerbys making use of flatfair.
This may create a situation where agencies using other deposit replacement schemes see their listings appear surrounded by Zero Deposit adverts.
Charles Bryant, managing director of ZPG Property Services, said: “Zero Deposit has emerged as the clear market leader in the deposit replacement market and this partnership gives us the opportunity to promote this exciting new service to our agent, tenant and landlord users.”
Notley added: “The Zoopla partnership is an important component of our strategy and will ensure that the maximum number of people are aware of our product and brand.
“We have around 25 influential lettings agencies who will be launching Zero Deposit over the coming weeks and months, and they will be supported by this significant marketing campaign.”
Tenants pay the equivalent of one week’s rent for a Zero Deposit guarantee, which is non-refundable and gives the landlord effectively the same cover as a six-week tenancy deposit. This guarantee is backed by insurer Munich Re and is a regulated financial product.
The tenants remain fully accountable for any damage or unpaid rents. Any disputes over claims by the landlord can be sent to TDS, who will review the evidence and provide a fair adjudication. Zero Deposit pays the landlord quickly in the event of an approved claim.
This may give the prospective tenants the wrong assumption that because the advert is on the property they are interested in means the Agent in question accepts Zero Deposit.
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You’re absolutely right NotAGuru71- However, this is clearly a deliberate (and fairly smart) way for Zoopla to use its massive market exposure to try and ‘onboard’ agents- through the agent’s fear of losing applicants, if they aren’t offering a Zero Deposit Scheme.
It is also worth noting that whilst the TFB is being debated/re-drafted, such schemes MAY fall under the umbrella of ”fees” and therefore could be fairly short-lived!
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So are you saying agents do not have the brains to make a decision for themselves, and are easily swayed by fear tactics? On the most part, I disagree. #OTM
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