Tenancy deposit replacement provider Zero Deposit has announced major client wins.
They are Carter Jonas, Marsh & Parsons, and James Pendleton.
Between them, they add 31 offices to Zero Deposit’s network of agents, taking its total number of offices to over 2,640.
Zero Deposit CEO Jon Notley said: “This is proving to be another year of growth for Zero Deposit as we work hard to ensure that all agencies in the UK know that there is a credible alternative to deposits for their landlords which offers more protection.
“We’re delighted to welcome these new brands on board and expect to share news of similarly impressive additions in the coming months.
“The importance of an FCA-authorised option that protects tenants, landlords and ultimately agents has come to the fore with recent press coverage.
“We’re setting new records on a monthly basis as we make finding a deposit-free home easier, fairer and faster. With this continued growth and track record, it’s no surprise that we are welcoming so many agents on board.”
Comments (3)
“Tenants should be wary of deposit replacement schemes, and in particular should consider the cost over the anticipated duration of the tenancy when compared to a deposit now generally capped at 5 weeks rent in England. Tenants should also be mindful of the fact that a traditional deposit can be offset against any future liability, refunded if no such liability arises, gives access to free arbitration via protection, and allows sanctions against the landlord if protection requirements are not met — deposit replacement schemes offer none of these.”
says Amy Hughes of Citizens Advice
https://medium.com/adviser/deposit-replacement-schemes-landlords-loophole-or-relief-for-renters-61eed38a4d5b
Well as long as these companies are allowing more than 14 days between the Tenant signing up and the move-in date (and or executing agreements) then I guess they might be fine. Having been on a deposit replacement course recently I was slightly worried that the trainer /representative didn’t give any attention that a consumer can withdraw from a financial product with no penalty up to 14 days after entering it – with the risk of leaving their clients exposed with a Tenant in place and “ZERO DEPOSIT” in place.
My advice – do your own research and put yourself in the Landlords shoes – what would you want?
watch the wheels of this come falling off over the next few months. IMHO its just nuts to be doing this as a letting business.