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Why would a tenant need a Tenancy Deposit Payment from Rental Deposits?
In 95% of circumstances a tenant has a temporary shortfall in funds due to a delay in receiving their previous deposit back and having to pay the new deposit in order for you to release keys ,often leaving them in temporary accommodation or expensive payday loans- Rental Deposits offers them the solution bridging that gap by paying these funds for them. All tenants that we supply deposits must professional credit healthy working professionals and be able to demonstrate their ability to afford to pay the deposit themselves under normal circumstances, however it makes financial sense for them to utilise 3rd party capital rather than tieing up their own funds for year, allowing them to keep a large sum of money in their own account for emergencies.
Are Referral Commissions Paid?
Yes, we pay your agency referral fees for every deposit we supply.
Can you accept Student or DSS in addition to Employed Tenants ?
Yes. However in order for you to be issued a Deposit we will run independent checks upon initial registration. Tenants will usually need to be credit healthy working proffesionals. In order for a Rental Deposit to be supplied the tenant must meet our criteria. Please click here to view criteria.
There are minimum requirements for our service so you must ensure tenants are employed, or full time students before using us. Students must also have a UK based parental guarantor that meets the reference criteria. We cannot accept housing benefit tenants, who have been on benefits for MORE than 3 months.
We suggest that when agreeing a tenancy you check your tenants:
Passport
Employment
Previous Landlord
3 Months Bank Statements
(usually any 3 of the above will suffice)
Why should I use Rental Deposits?
Why Not?! You must take a Deposit from your tenant to safeguard your investment, and this must be protected in line with the Government rules introduced on 6th April 2007 in order to avoid hefty fines. So long as the deposit funds are paid to you, it should not matter whether this is paid by the tenants or by us on their behalf. Furthermore by offering our service your property is more attractive to prospective tenants. This reduces void periods and improves the rental return received on your investment.
Do I have to use a specific tenancy agreement?
No. However we can supply you FREE of CHARGE with our standard Law Society ARLA approved contract or you may use your own.
Do I have to use a specific inventory document?
No. However we can supply you FREE of CHARGE with our standard comprehensive blank document for you to complete or you may use your own.
Are the tenants credit checked by Rental Deposits before the deposit is issued?
As the tenancy is a private let between yourself and the tenant, it is your responsibility to take any references you see fit. We will run independent credit checks on the tenants to assess their suitability to be approved for an Renatl Deposit. These checks are for financial loan purposes to be relied on by Rental Deposits only and all tenants will be employed, or full time students. Students will also have a UK based parental guarantor that meets the reference criteria. We do not accept housing benefit tenants.
How do I claim the Deposit should i need to?
This is very simple. At the termination of tenancy you simply agree with the tenants the amount of deductions if any. You then notify the deposit scheme and the funds are paid to you within 14 days. Simple.
Full details can be found on the Claim form.
Download a claim form >>>
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Can we accept Student or DSS in addition to Employed Tenants?
Yes. However in order for you to be issued a Deposit we will run independent reference checks upon initital registration. In order for a Rental Deposit to be supplied you must meet our criteria. Please click here to view criteria.
How much does it cost?
The premium for Rental Deposits providing the deposit on your behalf is set at 25% of amount required by the landlord as total deposit. There is nothing to pay in advance, registration is free. The premium only becomes due if you take tenancy at a property and move in.
Example:-
Security Deposit required by Landlord is £1300. Premium for us providing this deposit is 25%.
25% of £1300= £325
An admin fee of £90.00 also applies per deposit issued.
Once your application has been processed and the fee paid, we will issue the deposit to your agent or landlord. The deposit remains our property during the tenancy- AT THE END OF THE TENANCY THE FULL DEPOSIT PAID BY US IS RETURNED TO US NOT YOU.
Is Rental Deposits accepted by all agents and landlords?
Yes. However please be aware that unless we have dealt with the agent previously, they often initially misunderstand how the Tenancy Deposit Payments works and may inform you that they do not accept payment this way, however 99% of the time, once we have spoken to them, it is then accepted. Therefore it is very important that you contact us as soon as you have found a property you like, even if the agent has informed you that he does not accept payments in this way, so we can arrange it for you.
Is there a minimum duration to the deposit?
No, however the premium paid only provides cover for 12 months, if your tenancy exceeds this then a further renewal premium amounting to 15% will need to be paid or a deposit arranged directly with your landlord. Should you terminate tenancy early, no refund premium refund will apply.
What happens if I damage the property or disobey my tenancy agreement?
Rental Deposits does not allow you to ignore your responsibilities or the contract. If you have damaged the property or broken the agreement you are still responsible to pay for any repairs etc. and so should make payment to the landlord.
Rental Deposits ensures the landlord is paid for any damage but if we have to pay the landlord, additional charges will be added to your account and we may instruct debt collectors or take court action to recover any unpaid debts. If you required a guarantor we may also contact them for payment causing potential embarrassment.
What is the counter indemnity?
The counter indemnity confirms your understanding that we do not insure you against breaching the agreement and that we may recover any payments deducted from the deposit by the landlord from you or your guarantor. This document reinforces the right of recovery available to the insurer and is not the sole basis of such rights of recovery.
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