Landlords: deposit-free renting move with £0 deposit today
Mary-Anne Bowring 09/12/2019
2253
1. A Drop in Deposits Taken
According to Landlord Today, the number of new deposits collected from renters has dropped by 17% compared to 2018. Two key factors driving this trend are:
- Longer tenancies, reducing tenant turnover.
- The Tenant Fees Act 2019, which caps the number of weeks' rent that can be taken as a deposit.
2. Average Deposits Are Falling
The average deposit has decreased from £1,366 to £1,299 over the past year. However, deposits remain 7% higher than in 2015, making them a significant upfront cost for renters alongside other moving expenses.
3. Deposit-Free Renting Gains Popularity
To make their properties more attractive to tenants, many landlords are turning to deposit alternatives or even no-deposit renting. These options:
- Reduce upfront costs for tenants.
- Provide landlords with insurance coverage for potential damages or unpaid costs at the end of a tenancy.
4. How PlanetRent Simplifies Deposit-Free Renting
Our PlanetRent app makes it simple for landlords to offer deposit-free renting via Reposit, an FCA-regulated provider. Here’s how it works:
- Set up your properties on PlanetRent, ticking the box for deposit-free renting.
- Invite tenants to enter their referencing information.
- Receive a decision and offer a deposit alternative.
- If tenants opt for this, they pay one week’s rent, and landlords get eight weeks' rent protection.
5. Benefits for Agents and Self-Managing Landlords
- Agents can integrate deposit-free options directly into their websites or shopfronts via PlanetRent.
- Self-managing landlords can eliminate paperwork and reduce risk using our app.
6. Why Choose PlanetRent?
With deposit-free renting becoming a major draw for tenants, now is the perfect time to explore this option. PlanetRent simplifies the process, automates compliance, and provides you with peace of mind.
Planetrent Properties
info@planetrent.co.uk
0208 0599 550 (for sales)
Under Offer: This term applies to a property where the landlord is considering an offer but remains on the market. It implies that further offers may still be considered until the landlord formally accepts or declines the current offer.
Let Agreed: This term indicates that a landlord has provisionally agreed to enter into a rental agreement with a prospective tenant, pending additional checks and referencing. It doesn't require the prospective tenant to have paid a holding deposit.
Let: This term signifies an established binding rental agreement between the landlord and tenant.
For both lettings and sales, the guidance addresses additional terms:
New On The Market: This term is used for a property not advertised since its last sale or rental. It should only be used for a brief period.
New Instruction: It applies to a property assigned to an agent for marketing recently, even if it was previously listed with another agent without being sold or rented.
New and Exclusive: This term refers to a property that is either new on the market or a new instruction, exclusively available through a specific agent or portal.
New Method of Sale/Let: This term is used when a property is being marketed for sale or rent using an alternative approach to the original advertisement, such as transitioning to an auction or sealed bid.
Reduced: This term indicates that a property's price has recently been reduced. The reduction should be genuine and comply with the Chartered Trading Standards Institute's guidelines on pricing practices.