Landlords £ZERO Deposit Bonds for Lettings

Let-Leeds.com is always first in investigating new ways of making the lettings process better.

We are the first Agency in Leeds to adopt No Fee lettings and Zero Deposit Bonds. The majority of our properties however will remain using the traditional cash bond method until the scheme is widely accepted by all our Landlords.

Our aim is to make the lettings process faster and easier for you and your tenants, whilst giving you an edge over other landlords.

Let-Leeds searched for almost a year to find an Insurance company who would insure the property and create the Niché we knew would make a massive impact on the affordability of Lettings.

We know you need to protect your investment and don't want to take the risk yourself, that's why we finally found TenantDeposit.com who made the unique insurance product feasible, allowing you to do just that, without personally taking the risk of a bad tenant.

Let-Leeds and Zero Deposits can make your property more attractive to tenants, resulting in higher rents, less void periods allowing you to make the most of your investment.

Key Benefits:

  • Equal or Better Protection to a Cash Deposit
  • Up to 2 Months Rent Cover
  • Bonds Issued in Minutes
  • Compliant with the Housing Act (2004) No Deposit Protection Required
  • We find Tenants Faster
  • Free Dispute Adjudication Service

The insurance bonds give you the same protection as taking cash deposits without the need for Deposit Protection leaving you free to run your buy to let business.

Peace of Mind

The bonds are full insurance contracts giving you peace of mind that you are dealing with a regulated insurance broker.

Make Your Property Stand Out

Let-Leeds can let your property faster because traditionally, moving home can be expensive for tenants. They often have to find 3 months' rent all at once to cover their rent, deposit, agent fees and moving costs.

If we can save the Tenant up to two months rent during that first month we will stand out from the crowd. We will check your prospective tenants using the Tenant Reference service.

There are minimum requirements of the scheme so you must ensure tenants are employed, full time students or retired and receiving state pension before using our scheme. Students should also have a UK based parental guarantor where possible.

Let-Leeds cannot accept housing benefit tenants but their local authority or housing association will often provide a similar service to them free of charge. The bonds also work for shared properties. If all the tenants are on one contract they can share one bond and split the cost. For individual contracts per room, each tenant will need their own bond.

You can extend the cover to give you the best possible protection, extend your Zero Deposit Bond to six months rent and £25k legal expenses cover with TenantDeposit.com for less than £100.

Claims Process

The claims process fits seamlessly with existing deposit schemes.

To make a claim you must supply evidence using industry standard inventories and invoices which Let-Leeds.com will do, if you have a managed property, ensuring TenantDeposit.com work alongside cash deposits without you having to follow different procedures.

If you are unsure of how to make a claim or whether you are covered for works please contact TenantDeposit.com on 0844 800 1649 for guidance before starting the process.

£ZERO Deposit FAQs for LANDLORDS

Why should I use Zero Deposit Lettings?

Due to the current economic climate, some prospective tenants have been hit hard and are finding it difficult to stump up a large deposit and thus preventing them from moving.

This is a completely new approach to deposits and carries some risk, as Landlords are always exposed to, but we have found it will dramatically increase the chances of renting a property a quickly.

Alternatively, we also have properties that have been let quickly with a traditional deposit, so the choice really, is up to the Landlord.

Can you accept DSS or housing benefit tenants?

Unfortunately no. The tenant must be in employment or be on a full time university course. (Students require a parental guarantor)

Why should I use the Scheme?

Zero Deposit bonds can provide you with additional cover to that usually received from a cash deposit. Furthermore by using bonds Let-Leeds.com is likely to let your property faster and make it more attractive to prospective tenants.

This reduces void periods and improves the rental return received on your investment.

What is the maximum amount covered?

The bonds can cover up to two months' rent. Two months' rent is greater than the industry standard taken by the majority of agents and landlords.

Can I get more than two months cover?

You can increase the amount of cover by taking TenantDeposit.com fixed price rent guarantees giving you up to six months' rent cover when combined with the Zero Deposit Bonds. Let-Leeds.com can claim an extra 10% discount for our Managed Properties.

What happens if the tenant stops paying the monthly charges?

TenantDeposit.com follows a strict credit control process that makes this a rare occurrence.

However, when this fails, Let-Leeds.com will serve notice on their tenant under ground 12 thereby giving their tenant 2 weeks to remedy the situation or vacate the property. This will result in most tenants making payment to avoid such action.

In reality a tenant that is defaulting on our small monthly payment is likely to be in arrears for rental and so eviction is already underway. Sometimes it is better to nip these situations in the bud.

Cover will be maintained for the period it takes to evict the tenant so long as appropriate notices have been served and eviction is actively pursued.

The bond is restricted to only two months rent and it is therefore not in the landlords interest to encourage bad tenants.

Does the policy provide legal expenses cover?

No. But you can increase your cover to include this by purchasing TenantDeposit.com fixed price rent guarantees giving you up Legal Expenses cover. Let-Leeds.com can claim an extra 10% discount for our Managed Properties.

What types of tenancy can be guaranteed?

The scheme is designed to be used with Assured Shorthold Tenancies only.

Do I have to use a specific tenancy agreement?

No. However, Let-Leeds.com will insert the clauses stipulated in the policy documents to ensure cover is valid.

Do TenantDeposit.com cover short lets?

No. Bonds can only be issued against tenancies lasting at least six months.

Do the tenants have to be credit checked by TenantDeposit.com before using the Zero Deposit Scheme?

Let-Leeds.com will carry out references with Previous Landlords and Employers to check the identity and suitability of our tenants. We will provide copies of these references and due diligence documents for you to make your claim.

We will collect a copy of a Passport or Driving Licence, as well as a recent payslip or recent letter to the Tenant as well as a bank statement.

How is a claim made?

Claims will be assessed based on verifiable evidence as with any other deposit. You must notify TenantDeposit.com as soon as possible once the tenant has vacated the property and no later than 45 days after they have left.

Tenants must be notified by you of a potential claim within 14 days of leaving the property in line with deposit protection legislation.

A claim form is available for download or you can ring TenantDeposit.com on 0844 800 1649 for a hard copy.

What evidence must I supply to when making a claim?

You must supply any evidence you may rely on to support your claim including but not exclusively: a copy of the signed AST, references and due diligence documents, inventory checks, photos if taken, quotes or invoices and receipts.

TenantDeposit.com cannot investigate your claim for you and so failure to supply sufficient information could prejudice any claim.

This is because if you fail to provide sufficient information to justify your claim, TenantDeposit.com will be unable to recover the payments from the tenant. Under such circumstances we are therefore unable to make payments.

If you have supplied insufficient evidence we will write to you asking for more information so that we may continue with your claim.

What is the basis of settlement for a claim?

Landlords are covered on the same basis as a cash deposit. Therefore payment is made for costs of repairs where possible or financially viable. Where this is not possible replacement is on a like for like basis. Therefore replacement is to be of a similar value to the damaged item taking into account depreciation due to previous wear and age.

What happens if my tenant disputes the claim?

Should the tenant dispute the claim we may undertake two different procedures:

If the dispute is regarding a small matter or there is clear evidence supporting the claim TenantDeposit.com will appoint an internal claims handler to make an informed decision on the payment due.

Once a decision has been made in favour of the landlord payment will be made to the landlord within 10 working days.

I want to let my property as soon as possible after the tenant has left what should I do?

Let-Leeds.com will ensure any works can be evidenced with verifiable invoices or receipts issued by the handyman or tradesmen.

TenantDeposit.com cannot guarantee payment for works until a claim form has been submitted and so landlords should use appropriate judgement when instructing tradesmen.

You may contact us for general guidance prior to instructing works at the property.

Can I just take a Traditional Cash Deposit?

Yes, if all this is a bit too much just now, we'll happily let your property out on a Traditional Cash Deposit basis!

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