A Zero Deposit policy exists as an alternative to the traditional security deposit, it also provides landlords with the same cover and protection.
However, from 1st June as part of the Tenant Fee Act 2019, the government are bringing in a five week deposit cap for all tenancies with annual rent of less than £50k. Zero Deposit will still be able to offer six weeks cover to the landlord even after the five week cap has become law.
Zero Deposits reduce the upfront cost of renting for tenants, meaning they no longer have to wait for payday to move in, speeding up the process and decreasing the chance of void periods.
With a Zero Deposit policy, you are provided with the same cover as a 6-week tenancy deposit. Plus, the policy is backed and underwritten by one of the world's largest insurers, Equitable Rental Insurance Ltd.
By giving tenants the option not to give a traditional security deposit, you can increase the demand and ensure you find the right tenants.
With this policy, tenants still remain fully accountable for looking after your property and paying their rent. Zero Deposit makes the payment to you in the event of a fair claim at the end of the tenancy.
As the Zero Deposit policy is not like a traditional security deposit, it doesn't need to be registered with one of the deposit protection schemes, which ultimately saves you time and money.