The Residential Landlords Association has entered into a partnership with deposit alternative service Zero Deposit.
The RLA says the service will be the only deposit alternative product it will recommended to its 35,000 members across England and Wales.
“Since launching in February 2018 our deposit replacement guarantee has proven to be incredibly popular with both landlords and tenants - with several thousands already signed up” says co-founder and chief executive of Zero Deposits, Jon Notley.
“In May alone we have covered more than 1,750 tenancies, providing more than £2m in deposit cover to landlords.”
Andrew Dixon, chief executive of the Residential Landlords Association adds: “With the average deposit now more than £1,000, deposit replacement products are growing in popularity with both landlords and tenants.
“Our new partnership will allow us to extend this alternative option to our members alongside our traditional deposit protection scheme.”
Zero Deposit replaces the traditional cash security deposit; it claims it can help speed up the lettings process and reduce void periods.
It also says that in the light of the Tenant Fees Act coming into force over the weekend - where for most tenancies landlords can now only collect a maximum of five weeks rent to act as a deposit - it offers an extra week’s protection to its landlords, at six weeks.
Disputes are adjudicated by The Dispute Service.
Zero Deposit says it is the only deposit replacement guarantee which is fully regulated by the Financial Conduct Authority, meaning landlords and tenants are protected under the Financial Services Compensation Scheme and the Financial Ombudsman Service.