Wed 24 Feb 2021
The flatfair alternative deposit scheme for landlords
To recap, the Tenant Fee Act, which came into effect on 1st June 2019, limited the deposit a tenant has to pay to the equivalent of five weeks rent and a landlord can no longer ask for any extra rent as a pet deposit. We have therefore been researching schemes which increase the protection offered to you.
After lots of research and comparisons, we have signed up with a company called flatfair.
The "flatfair" No Deposit solution is an alternative to a traditional deposit, so how does it work?
- Instead of paying a monetary deposit, tenants pay a small check-in fee worth one week’s rent or £120 (whichever is the greater), plus VAT (£144).
- This limits the up front cost paid by the tenant and it provides you with six weeks of protection, at no additional cost to you.
- At the end of the tenancy if there are any damages or missing rent, you are reimbursed within 10 days of charges being agreed.
Bringing renting into the 21st Century
What does the flatfair no deposit option mean for landlords?
In addition to the 'alternative deposit scheme' flatfair have launched a brand new product called "flatfair Boost"
- This offers landlords up to six extra weeks of damage protection, with any damage costs recovered and paid to you the day after charges are agreed.
- Boost can be used on top of a traditional deposit or with flatfair’s No Deposit solution.
- To top up your protection you would pay a small subscription every month (1.5% of total rental value, plus VAT). For example, if your property rent is £1000, you would pay £15 per month (+VAT) to benefit from up to six weeks’ extra protection.
With Boost, speed and security go hand in hand
- Landlords choose to top-up their protection with Boost.
- They can also offer their tenants our No Deposit solution (for a faster move-in).
- For Boost, landlords pay a small subscription every month (1.5% of total rental value, plus VAT) for speedy charge recovery and up to six weeks’ extra protection.
- All of the regular end of tenancy checks still take place.
- Tenants are still responsible for damages, outstanding bills or unpaid rent (whether they have a traditional deposit or our No Deposit solution).
- We can cover damage costs up to the value of a further six weeks’ rent, (beyond the traditional deposit or No Deposit solution) and put landlords back in pocket within one day of charges being agreed.