Zero Deposit Guarantee Option
Affordability and Convenience for Tenants
A Zero Deposit Guarantee can replace a traditional tenancy deposit, giving landlords the same cover and protection as having a tenancy deposit in the bank, whilst making renting more affordable for tenants.
Tenants pay the equivalent of one week’s rent for a Zero Deposit policy, which is non-refundable and gives you effectively the same cover as a 6-week tenancy deposit. Tenants remain fully accountable for any damages or unpaid rents.
Financial loss or damage at the end of the tenancy remains the tenant's responsibility. In the event of a dispute the evidence is sent for expert evaluation and a final decision is made.
Why Would Tenants Choose Zero Deposit?
Pay less upfront: Free up cash by paying a fee equivalent to one week’s rent and avoid having to fund a second deposit when moving from one rental property to another.
Gain greater freedom when moving home: Moving home can be costly, making it hard to find your deposit, first month’s rent and the other costs of moving. A Zero Deposit Guarantee costs the equivalent of one week’s rent and replaces the traditional tenancy deposit, aiming to make renting more affordable.
More choice: Zero Deposit gives tenants an alternative to the traditional deposit, opening up the possibility of moving sooner, faster , or even at all, and because of this increased opportunity potentially renting a more suitable, or more desirable property than would have been possible otherwise.
Common tenant questions about Zero Deposit.
For more help, please see our full FAQs page.
A Zero Deposit Guarantee costs a tenant 1 week’s rent, so if your rent is £220 per week then that is the cost. The Zero Deposit Guarantee is automatically renewed on an annual basis. On renewal, there is a charge of £26 which covers the cost of managing the Zero Deposit Guarantee. Where there is a change of tenant under an existing Assured Shorthold Tenancy Agreement, the new incoming tenant will need to pay a £40 fee to be added to the Zero Deposit Guarantee..
At the same time they would have paid for a normal tenancy deposit.
Multiple tenants must take out a joint Zero Deposit Guarantee. They share the cost of the fees and any payment due to the landlord under the Assured Shorthold Tenancy Agreement for any financial loss or damage the landlord suffers. The tenants are all jointly and severally liable, meaning if one tenant doesn’t pay, the other tenants assume total liability for the entire amount due.
Yes, you can cancel within a 14 day cooling off period after purchasing the Zero Deposit Guarantee. There is no charge for cancellation.
You settle this with the landlord directly at the end of the tenancy. If you don’t, we pay them on your behalf and then collect any monies owed from you. We may engage the services of a debt collection agency in order to recover any such monies and you may be liable for their cost.
It is important that you do. If you do not we may pass your debt to a debt collection agency which could affect your credit rating. You may also be liable for the costs we incur engaging the debt collection agency.
We refer your case to The Dispute Service (TDS) who will review the evidence and determine whether you are liable for any financial loss or damage under the Assured Shorthold Tenancy Agreement and, if so, the amount due to the landlord.
We have partnered with The Dispute Service (TDS) to help ensure fair outcomes for landlords and tenants in the event of a dispute. All TDS adjudicators belong to the Chartered Institute of Arbitrators and comply with their Adjudicator Code of Conduct, which is available on the TDS website. The adjudicators make decisions based on the issues in dispute and the evidence provided.
The Zero Deposit Guarantee will automatically renew if your tenancy agreement is extended and we charge an annual administration fee of £26 on renewal.
You will need to provide a traditional tenancy deposit. It is a landlord’s choice to decide whether to allow Zero Deposit as an option in place of a traditional tenancy deposit.
When we are informed that a tenant is released from a multi-tenant agreement, we will update the Zero Deposit Guarantee to reflect the change and re-issue guarantee documentation. Any new tenants moving into the property will need to be added to the Zero Deposit Guarantee and will need to pay an administration fee of £40 to do this.