Renting - No deposit option

elliechoc

Hi all,


I had a quick search but couldn't find anything. My letting agent is offering me my deposit back and I would then have to pay them a monthly fee instead.


I am plannning on moving out when my notice is due in Oct, I wondered what there is to stop me from taking this option of getting my despoit back, say 2 months before I move, then any fee I pay them would be minimal before I'll be gone. I'd then have my deposit to put down on the next house.


Has anyone experience of this or the terms that might be imposed?


Thanks

System

I would hazard a guess and say that they would also want you to sign a new fixed term to go with the 0 deposit option.


Also remember these schemes are not regulated and you would still remain liable for any deductions the only difference is the scheme would look to recoup these via the courts

MEM62

I can see the attraction for the tenant but am a loss as to understand why a landlord would even consider this arrangement.

FreeBear

Also good for the letting agent - He gets a monthly fee from the landlord and an extra helping from the tenant.

System

FreeBear wrote: »

Also good for the letting agent - He gets a monthly fee from the landlord and an extra helping from the tenant.

The agent doesn't get a monthly fee this goes to the scheme although a referral fee may well be paid

fairy_lights

Is the monthly fee refundable at the end of your tenancy? If not I don't see how it benefits you.

davidmcn

fairy_lights wrote: »

Is the monthly fee refundable at the end of your tenancy? If not I don't see how it benefits you.

I suppose the benefit is that the OP has their deposit back before the end of their tenancy, and therefore able to use it e.g. as a deposit for their next place, rather than be arguing about it some time after they move out.

System

fairy_lights wrote: »

Is the monthly fee refundable at the end of your tenancy? If not I don't see how it benefits you.

No it isn't, you are basically paying for an insurance style policy.


Depending on the amount of rent will depend on the level of monthly fee. Some schemes ask for the equivalent of 1 weeks rent as a fee and then insure you for up to xyz value however should they need to pay out they will and do chase via courts and you could end up with a CCJ.


0 Deposit schemes are not all they are made out to be, just to give you an idea when I moved in to my house around 6 years ago my rent was £600 a month and I paid a £900 deposit. There is an agent local to me that offers 0 dep with a monthly fee instead. Based on the rent value I would be paying £45 a month so £540pa, over the 6 years I've been in my house I would have paid £3,240 against the £900 cash deposit


You tell me if they are worth it