Since 2007, tenancy deposits paid to landlords under residential assured shorthold tenancies must be paid into a tenancy deposit scheme. Failure to do so can result in severe penalties and may result in the landlord being prevented from recovering possession of their property.
We understand from landlords that the deposit system is unpopular as in a number of cases, it seems to favour the tenant. Landlord Knowledge has a solution and is now offering an alternative which provides better protection than a deposit, avoids the administration and ongoing costs with Government schemes, enables landlords to advertise properties with NO DEPOSIT required, and guarantees ‘no squibble’ settlements within 28 days of claim.
The ‘Tenancy Deposit Alternative’ is an easy and affordable solution and works on the basis of a single payment product at the outset of the tenancy which will cover landlords in respect of damages and arrears of rent in a similar way to a traditional deposit, but offers more protection.
The advantages over a Government scheme;
1) It’s cheaper and protects landlords more than a traditional deposit.
2) Landlords are far more likely to let their properties quicker and for a full rent given they do not need to ask for a deposit.
3) There are no ongoing administration costs as with a TDS.
4) Reduces moving costs for tenants.
5) Available for students and DSS.
The tenancy deposit alternative is an easy and affordable solution to taking a deposit, below are the costs involved dependent on monthly rents.
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