January 2019: The No Deposit Option has evolved to the Residency tenancy membership - find out more.
In recent years, the government has made a number of changes to property legislation, with the aim to better protect tenants’ rights and to make renting more accessible. Tenants currently face a lot of financial pressures, from raising the initial deposit and costs of moving, to saving up to buy their first home. The government has recognised this and taken a number of positive steps to ease this pressure and make moving more affordable.
The deposit tenants are required to pay makes renting more challenging and can impact big life decisions. Leaders wanted to ease the financial burden placed on tenants and so have launched the No Deposit Option. Under our pioneering new scheme, instead of paying a large, upfront deposit, tenants can opt to pay a small monthly fee. In exchange for this fee, tenants will benefit from:
- Deposit-free renting - move more quickly but still be covered for accidental damage*
- Credit history contribution - all rental payments made by tenants under the NDO scheme will build their Experian Credit Report
How will this benefit tenants?
“Under the traditional deposit scheme, tenants often delay moves in order to save up the upfront deposit, only for it be tied up just in case. Not only does this often delay moves but, it can also make moving from one rental property into another increasingly difficult, as the deposit for the new property is often required before the deposit from the existing property has been released. With deposit free renting, this is no longer an issue” explains Allison Thompson, Lettings Managing Director at Leaders.
Currently, rental payments don’t positively impact a tenant’s credit history even though rent is often the largest regular payment many tenants make. In exchange for the small monthly fee, Leaders’ tenants will benefit from Experian tracking their rental payments to ensure those who pay in full and on time, see a positive impact on their statutory Credit Report.
To see our available No Deposit Option properties, click here.
What does this change mean for landlords?
When piloting this new product, many landlords asked the same two questions; “How can there be no deposit?” and, “What happens if the tenant damages my property?”
Landlords can rest assured that, properties marketed under this scheme will be indemnified by Leaders for the equivalent of 7 weeks’ rent – that’s 40% more protection than the standard 5 week deposit. If there are damages at the end of the tenancy, we will liaise with the tenant during the check-out process to ensure any issues are rectified before the next tenancy begins. It’s a win-win, tenants only pay for the work that’s needed and landlords have the peace of mind that repairs are being taken care of.
Landlords, find out the rental value of your home with a free instant online valuation.
To find out more about our Landlord Services, click here.
* adequate tenant insurance must still be taken out before moving into any Leaders rental property