The chief commercial officer of PropTech startup Canopy says that letting agents and Build to Rent landlords need to accommodate the 'scores of conscientious urban renters' looking for deposit-free accommodation.
Jon Pitt makes the claim as Canopy has announced a corporate tie-up with Experian, PwC and Direct Line which will see the corporate firms' employees offered access to the startup's rental app.
The app will provide tens of thousands of employees with the opportunity to benefit from Canopy's DepositFree renting service at a discounted rate. The DepositFree insurance policy - a one-off premium which covers the renter for the length of the rental contract - is backed by Hiscox and means renters don't have to pay a deposit up front.
Employees of Experian, PwC and Direct Line will also have access to Canopy's RentTracking product which incentivises tenants to track rent payments.
Renters will also be able to create a digital profile called a Rent Passport where they can build a Trust Score which verifies their rent payments, creditworthiness and past references, allowing landlords to carry out the vetting and pre-tenancy process more quickly.
"We’re thrilled to partner with these corporations, and believe that the uptake in deposit free renting by industry leading companies represents an overwhelming tide of change in the rental sector, as deposit-free insurance becomes the norm for professional employees working within our largest corporations," says Pitt.
"We believe this represents an important signal for agents and build-to-rent landlords, who will now need to accommodate the scores of conscientious urban renters looking to lock into deposit-free rental accommodation.”
“Naturally, property market leaders will want to take advantage of this trend, as deposit free renting has well and truly hit the mainstream," he says.
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Another piece of advertising with no value. What is becoming apparent is that Agents such as Countrywide and other corporates are looking to charge premiums for insurance to cover this so called "Deposit Free" tenancy which amounts to nearly 50% of the cost of the deposit in the first instance. Figures that are being branded around are at least £400.00 per tenancy for the insurance premium. The fact the these insurers are allowing Agents to quote thier own premiums which are grossly higher than the figure they are being charged is just another case Corporates damaging the industry once again .
From what I read in CityAM the other week, Canopy's premium seems to be much fairer to the tenant (5-15% of cash deposit amount), as set by Canopy/Hiscox, not the agent...
These schemes all sound lovely and fluffy for tenants who, it seems, more people daily think should have their hands held and be protected from the nasty landlords. I suspect however that once this new disruptive industry discovers that not all tenants wear halos, the cost of cover will increase. You only need to look at car insurance premiums after a freezing winter to see the effect.
Tenants need to "buy into" tenancies and take responsibility rather than chanting the mantra of it being someone else to blame!
Ooh, does that mean we can we have 'deposit free' car rental as well, and 'deposit free' tool hire as, after all, we are very responsible people.......
I was in Plant Hire many years ago and the company offered a 'damage waiver' premium; they made thousands out of it!
Keep the deposits (at a reasonable quantum), and keep tenants as stakeholder in their tenancy!
Totally agree.
Take 3 or 6 months rent in advance with rent commensing straight away on Move In and dont bother with the waste of time DPS or TDS who always regardless of backed up evidence come down in favour of the tenant
You would still need to protect unless the tenancy agreement is well worded. A deposit being any monies not immediately due under the tenancy agreement!
Well worded TA is always the only answer. Belt and braces everytime.
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