Chancellors, the independent agency chain with over 50 offices across southern England and mid Wales, is launching a deposit-free renting option.
Working with deposit alternative provider Canopy, the agency - which is particularly strong in the Home Counties and Cotswolds - is offering eight weeks cover as opposed to the standard five weeks with a cash deposit.
Chancellors has taken out a deposit insurance policy, across its managed portfolio.
Under the arrangement, qualifying tenants will have the option to be covered under the deposit insurance policy purchased by Chancellors on behalf of their landlords.
Tenants will require an Experian Credit score greater than 561 and have no adverse financial history. If accepted, they will be able to track their monthly rental payments and improve their Experian credit score which also reduces the risk of rental arrears for Chancellors and its landlords.
Through Canopy tenants will also have access to financial products, such as energy switching, contents insurance, car insurance and shortly bike insurance.
Robert Scott-Lee, managing director of Chancellors, says: “Deposit-free renting is starting to take off as a global phenomenon. In shaping the future of rental market, we have opted to work with Canopy due to the holistic financial wellness nature of their platform, which adds value to Chancellors, as well as to our landlords and tenants.
“A key selection criterion was the regulated nature of Canopy’s deposit insurance product, which should be a key consideration to ensure landlords’ property is always protected.
“We believe that by securing insurance on behalf of landlords, we are able to avoid the loss of control and cost to tenant that tenant paid for insurance creates and causes many landlords concern. Canopy goes a step further, as it is the only deposit alternative product in the UK market, which in addition to protecting landlords, also protects tenants for critical life events.”
Canopy’s RentPassport system provides free referencing for agents and landlords. Canopy also offers a deposit free insurance policy, an affordable alternative to cash deposits, providing eight weeks protection to landlords.
As part of Chancellors offering it is free to the tenant and not only covers the landlords’ deposit, it also protects tenants in the event of major life events such as critical illness or job loss - but not pandemics.
Separately for other agents and tenants directly Canopy provide a tenant paid for option through a one-off premium.