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'Nil Deposit' – An alternative to traditional tenant’s deposits

Paying a dilapidations deposit is an essential part of renting a home, as any landlord rightly wants security against damage to their property caused by a tenant either deliberately or accidently.

Finding the dilapidations deposit when you’re moving into a new home can be tough when you’re paying the first month’s rent and the other costs associated with moving home, especially if you’re previous deposit has yet to be returned.

The 'Nil Deposit' scheme allows (with the Landlords agreement) the tenant a choice of paying the dilapidation deposit up front - in nearly all cases this will be equivalent to six weeks rent- or to take up the 'Nil Deposit' option and pay the equivalent of only one weeks rent plus vat, as a non-returnable premium.

 

For Landlords

'Nil Deposit' is an alternative to a traditional deposit.

There is no cost to the Landlord.

'Nil Deposits' still provides the same or better cover than a six week dilapidations deposit.

'Nil Deposits' help make your property more attractive than those, where only a traditional deposit is required.

'Nil Deposits' pays out for any breach of the tenancy agreement*. A dilapidation deposit may not.

At the end of the tenancy any damage will be paid by Let Alliance 'Nil Deposits'*, that are agreed by the tenant or by an independent adjudicator, if there is any dispute (in the same way as the Deposit schemes).

All payments up to the maximum of six weeks rent

For The Tenant

Taking up the 'Nil Deposit' offer saves the necessity of finding six weeks rent, on top of the first month’s rent and other moving costs. 

You only pay the equivalent of one weeks rent + vat, as a non-refundable premium.

You remain liable for any breach of contract or damage you cause to the property and will need to reimburse Let Alliance 'Nil Deposits' against any claim. As with the traditional deposit any dispute will go before an independent adjudicator

You will need to have tenant’s liability insurance in place. This will protect you by paying for any accidental damage to the property, fixtures and fittings.

 

Martyn Gerrard are one of the first agents in the country to offer this new scheme, designed as a simple alternative to the standard deposit currently paid by a tenant. 

This is provided and backed by Let Alliance, who are one of the UK’s leading providers of referencing and insurance solutions covering specialist buildings and contents insurance for agents, tenants and landlords. The insurance cover is backed by Great Lakes Insurance and Munich Re, one of the world’s leading reinsurance companies.