Honourable and personal residential letting experts

Is the security deposit enough?

From 1st June 2019 the maximum deposit landlords can hold is the equivalent of 5 weeks rent. If tenants owe any rent, this 5 weeks does not go far toward any damage, cleaning or repairs needed as a result of the tenant.

There is a ‘no deposit’ option which benefits both landlord and tenant -it is called Reposit.

Providing both the landlord and tenant agree to use this scheme then the landlord gets cover of up to 8 weeks rent, and the tenant does not need to tie up 5 weeks of rent in security deposit for the length of the tenancy. This has the benefit of making the property more attractive to potential tenants.

Under this scheme tenants spend 1 week of rent to ensure Reposit underwrite up to 8 weeks’ rent worth of costs for landlords  of any agreed damage, cleaning, repairs etc. at the end of the tenancy.

Tenants still meet the costs for these items, but after the end of the tenancy when the costs are known, when they need to reimburse Reposit for the agreed sums. As the evaluation criteria of costs are the same as for the approved deposit protection schemes, e.g. Tenancy Deposit Scheme, this ensures fairness.