News LANDLORDS TO BENEFIT FROM NIL DEPOSIT SCHEME
Published by Natalie on 14th December, 2017
LANDLORDS TO BENEFIT FROM NIL DEPOSIT SCHEME
Payton Jewell Caines has launched a Nil Deposit Scheme that is set to benefit tenants and landlords alike.
Administered by Let Alliance, the scheme is designed for tenants who struggle to find a deposit as bond money. They simply pay a fixed fee instead that is equivalent to one week’s rent.
An inventory and check-in report are required before the tenant moves in, with the first inspection completed within 3 months of the move in date and every 6 months thereafter. Landlords still have full protection with the scheme paying a maximum of six weeks rent if a claim is made against the tenant.
Rentals Director, Sara Hawkins explains: “This unique nil deposit scheme makes renting more affordable for tenants which in turn will help to market specific rental properties and reduce void periods when properties are empty. Landlords benefit from increased marketing opportunities while having peace of mind that there is protection in place should they need to make a claim against the tenant. It’s a win-win situation for both landlords and tenants alike.”
Claims are made in the usual way against the tenancy agreement in respect of the condition of the property at the end of the tenancy period. Let Alliance negotiate with the tenant in the case of disputes and arrange adjudication when required.
To be eligible for the Nil Deposit Scheme tenants must be referenced by Let Alliance and have a referencing report confirming they are Acceptable for Tenancy or Guarantor Recommended (with an acceptable guarantor in place).
In addition the tenant must have lived in the UK for a minimum of six months and not have income derived solely from benefits.
The Nil Deposit Scheme is not available for overseas applicants who are moving to the UK for a fixed period e.g. an applicant working on a fixed term contract or a student sponsored for a fixed period.