PropTech company Goodlord is the latest entrant in the deposit alternative field.
Under Goodlord Deposit Replacement Insurance agents can provide landlords with eight weeks of protection - the firm claims this is up to three weeks’ more than a traditional tenancy deposit, which will be capped at five or six weeks (dependant on annual rent) under the Tenant Fees Act coming into effect in June.
The insurance can be white labelled to complement customers’ existing brands.
“We’ve listened to the concerns our customers had around other deposit replacement schemes in the market and, as a result, have built an insurance-backed deposit replacement scheme” says Goodlord’s Oli Sherlock.
Goodlord chief executive William Reeve adds: “Deposit replacement could cost renters as little as 25 per cent of a month’s rent. This will help to put agents in a good financial position ahead of June’s tenant fee ban, enabling them to offer landlords significantly more protection than a traditional tenancy deposit, and making moving home easier for their tenants. The Goodlord platform ensures the process is completely transparent and seamless for all parties.”