Three things every landlord fears:
- Not being able to find tenants to rent their property
- Tenants racking up rent arrears – leaving landlords living for months without income
- Having tenants cause serious damage to their properties – putting landlords out of pocket and leaving properties impossible to let.
Until now the only way landlords could protect themselves against these problems was with a traditional tenancy deposit, placed in a DPS such as mydeposits, the Tenancy Deposit Scheme or the Deposit Protection Scheme.
But how much protection does one month’s rent really give you?
Deposit-free renting from Dlighted gives you more than £500,000 of:
- Damage protection
- Rent protection
- Legal protection
Deposit-free renting gives you a £75,000 rent guarantee and £50,000 of legal cover.
With the government planning to cap deposits at the equivalent of four weeks rent, an old-fashioned tenancy deposit can only ever protect you against rent arrears for one month – and you could still have to fork out for court costs and solicitor, bailiff and locksmith fees.
The introduction of the government’s Universal Credit welfare reforms has seen rent arrears quadruple in some areas and a Residential Landlords Association study recently showed that 38% of landlords have experienced rent arrears, leaving them owed an average amount of £1150.
Our deposit replacement insurance also covers you against health and safety and tax prosecutions,
Dlighted gives you £500,000 of property cover and £50,000 of legal protection
Is one month’s rent really enough to cover the cost of a new sofa, new carpets, broken windows, redecorating, plastering and specialist cleaning – let alone significant or structural property damage caused by tenant neglect?
According to one survey, the most common kinds of damage to a rented property are broken furniture and stained carpets. Another study showed 30% of renters think it’s acceptable to take property with them when they leave a rented home – even televisions, beds, fridges and boilers!
Even if a deposit does cover the cost of a bad tenancy, a resolution by a deposit dispute service often takes many months, leaving landlords with a lengthy wait for compensation even when their properties have been left in a condition which makes them impossible to rent out.
Deposit-free renting makes it easier to find and keep good tenants
Asking for a tenancy deposit limits potential renters to people who have an average of £1000 to hand – needlessly reducing the number of people who can afford to rent your property.
Zero deposit renting with Dlighted cuts the move-in cost for renters by 50% – and the faster you get tenants through the door the faster you start making money.
Deposit-free renting makes tenancies last
British households have a combined debt £200bn – and four out of five of families struggling with debt live in rented accommodation.
Asking for a tenancy deposit puts an additional financial burden on your tenants , making them more likely to default on their rent or abandon their tenancy altogether – costing you money.
Our one-of-a-kind Trusted Tenant Technology also gives you unrivalled peace of mind that your tenant is someone you can trust.
Our deposit replacement insurance policies include enhanced tenant vetting. Most tenant referencing will only tell you if a prospective tenant has been declared bankrupt or has a CCJ against them.
Our Trusted Tenant technology gives you total insight into a renter’s credit history and insuance claim history.
Here’s how deposit free renting with Dlighted compares to old fashioned tenancy deposits: