Rental Deposits

LUCKYAMB

Hello All,

Just wondered if anyone had ever heard of a company called "Rental Deposits"? They pay your deposit for you for a fee?

I work full time, and need to move across the country however I paid a large deposit on the property I live in, which from experience I know takes a couple of weeks to back paid back to me after moving out. I need to pay a deposit on my new property before I move in, which leaves me in a difficult position, as I cannot afford the new property without my current deposit back!!

Just wondered what others views were on this company as it is the only one I can find with this sort of scheme? I have contacted the local council and they have said they only assist in priority cases such as homelessness, severe disabilities, and usually cases were you are in receipt of an income based benefit, etc. As I don't fit any of these categories, they are unable to assist.

Thanks

SerialRenter

Seems quite expensive, they claim it's only a small fee:

You simply pay a very small, one off premium to us

But then from the FAQ you see the true costs.

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.

25% + £90. Ouch!

I cant see anything on their website about how they're regulated. Frankly i wouldn't trust them.

Some companies help with moving, so perhaps they'd be willing to give you an advance to help out?

dominoman

Wow! Looks very expensive. Try every other option first. Bank loan. Overdraft. Borrowing from family or friends.

Perhaps your company can lend you interest free money for a "season ticket loan". Ask about it. A lot of places do, and they don't need to see what it is actually used for.

00ec25

not only is it expensive but look at the additional small print...

if you stay at the property for more than 12 months then you have to pay an additional 10% renewal fee or you will have to pay the deposit yourself to the LL so as the maximum term of the loan is 12 months that means for a £500 deposit your actual interest rate (incl the £90 admin fee) is 43% pa
not that I advocate this as a real alternative, but it would be cheaper to borrow cash on your credit card than to use this company

jjlandlord

Fees are actually:
- 25% of deposit supplied
- one off admin fee of £90.00 per deposit issued.
- additional admin fee of £64 per deposit issued for NON UK
PASSPORT Holders.
- If a guarantor is required (students and DSS) an additional processing fee of £149 applies
per deposit.
- further premium of 15% in addition the 25% detailed above (total
premium 40%) if you will be taking tenancy with dogs or cats.

And:

-If the tenancy is renewed at any point, the deposit will remain in place and you will be liable for a further renewal premium at the rate of 15% per annum plus administration of £35.00

Plus several 'penalty fees' in case of various issues.

Plus it seems the following indemnity if they suffer costs or losses (e.g. landlord wants to keep some of deposit):
"If this indemnity is enforced a charge of £425 will be applied and the tenant agrees to pay Rental Deposits within 7 days upon demand of any amount so indemnified and agrees failure to settle any demand within 7 days will result in an additional £200 administration charge being levied. The tenant understands that should they fail to pay any amount demanded by Rental Deposits under this indemnity when due, then interest will accrue on that amount from the date payable up until the day the amount is paid. Interest will accrue on a daily basis at an annual rate of 19.5%. "

I have no words...

BitterAndTwisted

It would be cheaper and less risky to negotiate a short-term overdraft facility. Or withdraw the deposit in cash on a credit-card and pay it off over several months or until the deposit on the current property is returned.

I have no words for these shysters other than "usury". "Wicked opportunists" is another that comes to mind.

Annie1960

I wouldn't normally find myself recommending an overdraft, but in your situation it may be the best option. Or, as others have said, credit card.

You can then pay this off when you get your previous deposit back.

G_M

You'll be better off geting ripped off by one the Pay-Day lenders that advertise loans on TV.