Reposit the deposit alternative

Published: 10/07/2017 By Lucy Murray

The ban on tenant letting fees has been confirmed and could come into force as early as this September.  Whilst the finite details have not been unveiled, we do know that neither landlords or letting agents will be able to charge the tenants for any referencing, administration or inventory costs.  In fact, tenants only outlay will be a small holding deposit, one month’s deposit and their first month’s rent.  And you read that correct, one month’s deposit.

Currently C James & Co take 6 weeks rent as a deposit which is held in a regulated deposit scheme.  The new cap means ‘loosing’ two weeks worth of deposit in the event of dilapidation costs.  As we anticipated this cap some months ago we have been looking at deposit alternatives which offer 6 weeks cover and have partnered with Reposit who we feel offer the best package for landlord & tenant.

Instead of taking a deposit of one month, tenants pay Reposit a non-refundable fee equivalent to one week’s rent.  This product provides cover to the value equivalent of 6 weeks’ rent.  Landlords will be covered for loss of rent, breakages, damage and cleaning.  In the event of a dispute, the tenant pays a Reposit independent arbitrator to deal with the matter, which doesn’t cost the landlord a penny.

The benefits to the tenant are it frees up their money, which is why the Government are banning fees, allowing them to save for a house deposit or simply retain a large amount of cash – something that will be very appealing to most people.  The quality of the tenant won’t change, they will still have to meet affordability criteria and be referenced.  We expect this new alternative to be very popular with tenants and be more of a draw to renting through C James than through our competitors.

Reposit have produced a Landlord Guide to their service, which can be read by clicking on this 
We intend to offer Reposit as an alternative to the deposit scheme on all our rental properties, however if you would prefer to opt out, please contact us or contact with any questions you might have.