Zoopla-backed Zero Deposit has signed up more than 100 tenancies in the first months of the scheme’s launch.
The deposit replacement scheme went live at the end of February, launched by former Zoopla commercial director Jon Notley.
He told EYE: “We have well over 100 live tenancies with the product, with hundreds more letting offices launching over the coming weeks and month.”
It comes as an Acorn Group landlord reported that 60% of its tenants has opted for the deposit replacement scheme option.
The agency was one of the first investors and users of Zoopla-backed Zero Deposit two months ago and said it has now been rolled out to all its 31 offices, proving popular on the Croydon-based Delta Point development run by its landlord client Criterion Capital.
Karl Elliott, head of portfolio at Criterion Capital, said: “We will be bringing 404 units to market through our Delta Point scheme over the next few months and out of the first phase released, nearly 50 tenants out of 80 have indicated that they will be choosing Zero Deposit.
“There is no question that Zero Deposit is helping to make our properties more attractive to potential tenants, speeding up the process and resulting in happier tenants when they move in. Zero Deposit is a big win for our tenants and Criterion Capital.”
Paul Deveney, main board director for Acorn Group, said: “We have seen plenty of demand for Zero Deposit since it launched 2 months ago.
“This is the right product at the right time for tenants who are increasingly finding it difficult to meet the various costs of moving, and landlords who benefit from an easier move in process. We are delighted with the early signs and have no doubt that Zero Deposit will become the norm for renting in future.”
Zero Deposit officially launched in February, backed by Connells, LSL, Knight Frank and Acorn Group.
The business also has financial backing from Munich Re, adjudicator TDS, JamJar and former Countrywide chairman Grenville Turner.
Tenants will pay the equivalent of one week’s rent for a Zero Deposit guarantee, which is non-refundable and gives the landlord effectively the same cover as a six-week tenancy deposit. This guarantee is backed by insurer Munich Re and is a regulated financial product.
The tenants remain fully accountable for any damage or unpaid rents. Any disputes over claims by the landlord can be sent to TDS, who will review the evidence and provide a fair adjudication. Zero Deposit pays the landlord quickly in the event of an approved claim.
Jon Notley, founder of Zero Deposit, added: “We are delighted with the feedback that we have received from agents, landlords and tenants. We knew that there would be strong demand for Zero Deposit given the strength of our product and partnerships.”
I’ll cast judgement once it’s known how easily payment is made to cover fair deposit deductions at the end of the tenancy.
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Not sure how this can possibly going to work.
When inspecting properties on a daily basis as tenants leave, there are very few where a deduction is not taken.
Unless the insurers are going to pursue the tenants for losses/ be very reluctant to pay out to Landlords , I certainly don’t think this type of insurance can be sustainable.
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I just don’t get why a tenant would want to pay a non-refundable premium to protect against a landlord’s loss, when they still remain ‘fully accountable for any damage or unpaid rents’ … isn’t this just a fee in all but name?
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It comes as an Acorn Group landlord reported that 60% of its tenants has opted for the deposit replacement scheme option.
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Thanks a lot my friend. Nice and good sharing for now good storage.
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that was an amazing deposit scheme.
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Such an amazing scheme!
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