What do this mean, see screen shot? My new tenants have sent me this screen shot when they have gone to sign the contract but we don’t understand what this means about the options of Rent Deposit Free?
google it and do not do it . It is your choice not the tenants. The people selling it get a cut
open rent have replied with this: Now I understand
We’ll explain more about the difference below:
Deposit Replacement scheme
- One off payment of a week’s rent made by the tenant(s) to the scheme provider, Reposit, at the start of the tenancy and then an annual renewal fee of £30.00.
- At the end of the tenancy the landlord can claim up to eight weeks’ rent to cover the costs of any damages or unpaid bills during the tenancy
- The insurance company would cover the initial pay out to the landlord and recover their costs from the tenant(s)
- The landlord and tenant(s) have access to the insurance company’s free arbitration service in the event of a dispute
- There is no cost to the landlord
Traditional Deposit
- A one off payment of up to five weeks’ rent made by the tenant(s) before the tenancy starts
- Is protected by one of three government approved deposit schemes. If you are using our Rent Now tenancy creation service we’ll protect the deposit with mydeposits custodial scheme which is completely free to landlords.
- At the end of the tenancy the deposit is repaid to the tenant(s)
- The landlord can claim some, or all, of the deposit to cover the cost of damage caused by the tenants during the tenancy or unpaid bills
- In the event of a dispute over the deposit the landlord can use the deposit scheme’s arbitration service to reach a resolution with the tenants
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