New Government legislation comes into force on 1st June which will cap traditional tenancy deposits at 5 weeks (or 6 weeks where annual rents exceed £50,000). Hundreds of thousands of landlords in England and Wales are facing the prospects of having less security and the concern of falling into rental arrears should tenants cause damage.
Leaders are now able to offer landlords a better alternative through our No Deposit Option – so you can have 7 weeks indemnity.
What is Leaders’ No Deposit Option?
The No Deposit Option, through the Residency membership, gives tenants the freedom to move into a new home without having to pay the standard 5 weeks’ deposit.
But how will the No Deposit Option benefit landlords?
By making renting more affordable and removing up front deposit costs, our scheme will reduce void periods as we’ll be able to move tenants more quickly into your property. Moreover, landlords will have greater choice as more people will be able to afford renting than previously. Due to the uniqueness of our scheme, we have seen a massive rise in popularity and more tenants joining.
Everything else, including the necessary checks including Right to Rent and references, will stay as is. When choosing our No Deposit Option your tenants' rental payments will help them build a positive credit score and also help reduce the risk of rental arrears.
Leaders will indemnify you for the equivalent of 7 weeks’ rent for any damage or dilapidations that have come about from the tenancy. That is 40% more than the standard 5 week deposit. The indemnity can be used to cover dilapidations and damages and then arrears if applicable.
Will Leaders still provide an inventory?
Yes, we will still provide an independent inventory and schedule of condition at the start of the tenancy.
Can tenants still pay in advance?
They can, for a period of 6 or 12 months.
To find out more about Leaders’ No Deposit Option:
Leaders' No Deposit Option (NDO) is part of the Residency membership. With this option the tenant can pay the monthly membership fee without the need to have the traditional deposit amount tied up for the duration of the tenancy. The tenant will still be liable for any damages at the end of the tenancy and there is a monthly fee to be a Residency member.