When a tenant moves into a new rental home finding a deposit can be tough when their previous deposit hasn’t been returned, and the tenant is paying their first month’s rent and the costs associated with moving. The Let Alliance Nil Deposit Scheme provides an alternative to the traditional deposit for your tenants.
How does it work?
- Your tenant pays a service charge for the Nil deposit Scheme equivalent to 1 weeks rent (Plus VAT), for the first year, this is non-refundable.
- Your tenant takes out Tenant's Liability Insurance which provides cover for landlord’s property of up to £2500.
- Dilapidations are dealt with in the usual way by Belvoir and payment is the responsibility of the tenant.
- In the case that amounts cannot be agreed, the case would go to arbitration in the usual way.
- Where a tenancy is extended, the Nil Deposit scheme can be renewed annually with the tenant paying a service charge of £25 plus VAT to Let Alliance.