Spicerhaart has signed up with a deposit-free renting platform to offer landlords and tenants the option of working with a no-deposit system if they wish.
Instead of taking a deposit, landlords ask tenants to join the platform which is called flatfair, where instead tenants pay for what the platform describes as “lawful claims” at the end of the tenancy.
The service asks tenants to pay a membership fee equal to the value of one week’s rent instead of a standard six-week deposit; however, it claims to offer landlord clients double the usual protection with up to 12 weeks’ rent instead of six, plus free debt recovery for additional claims, quicker payouts, and access to a pool of “reputable tenants leading to faster lettings, fewer lengthy voids and no deposit paperwork.”
Spicerhaart, which has 100 lettings branches, will be promoting the service to its 15,000 landlords.
“Many landlords are concerned that their property is not sufficiently protected by a tenancy deposit, particularly true in the light of the upcoming deposit cap, and that lengthy void periods and penalties eat away at their rental yield. When a tenant doesn’t respond to claims, the deposit is frozen and landlords are left out of pocket” says Paul Sloan, lettings development director at Spicerhaart.
“We were highly impressed with flatfair’s innovative technology and how easy the platform was to use. We’re confident it’ll mean not only lower up-front costs for tenants but also help make our landlords’ properties more appealing. In addition, faster payouts from the platform will help our landlords to re-let their properties more quickly.”
flatfair says deposit-replacement schemes have proved hugely popular in Germany and Switzerland.