Lettings agency KIS claims it is the first in the country to abolish the need for tenants to place a deposit following the signing of a deal with an insurance firm.
KIS claims its Let By Cover scheme - which removes the need for the guarantor and offers tenants and landlords a guaranteed rent, specific forms of legal assistance and emergency repair services - makes it simpler and safer to rent or let our a home.
The firm manages properties for 700 landlords from branches in Sunderland, South Shields and North Shields. Managing director Ajay Jagota says that as an industry we've got it into our heads that deposits are just something you do.
However, he says a typical £500 deposit would barely cover a landlord's costs in the event of damage to their property or serious rent arrears - even if the deposit protection scheme paid out.
He claims Let By Cover offers insurance protection for landlords in the event of arrears of up to £30,000, legal and professional costs up to £25,000 and eviction costs of up to £25,000 too. The cover does not apply to HMOs and the policy can only be taken out at the start of the tenancy period - not part way through.
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Comments
Opening the door to Tenants who cannot pay a deposit simply lowers the quality of Tenant housed. Years ago our agency used to deal with HB Tenants and those who had their deposit paid for by the local authority were the worst as they simply had "nothing" to lose. I don't think there are many landlords who would read this article and see it as a benefit to them at all. PR disaster - I agree!
Erm, Am I missing something here; what happens with dilapidations
Seems like KIS have forgotten they are the landlord's agent, and not the tenant's. As a landlord I like the reassurance that 1) my tenant can afford a deposit and 2) my tenant has something to lose if they don't play ball. A PR disaster I'd suggest
Mr Jagota seems to get his name about a bit, I wonder if he's as good at actually selling and letting properties
I've seen so many of these schemes come and go
Does the cover apply to student and LHA tenants