A new insurance-based service claims to allow tenants to avoid paying deposits upfront when they rent.

Husmus assesses and rates tenants and their ‘behaviour rating algorithm’ will then  determine how positive their past rental behaviour has been and charge them accordingly. 

The best behaved tenants get the best prices paying as little as 10 per cent of the usual five week deposit.

Chief executive of Husmus, Sarah Werner, says: “Husmus is leading the way in adopting a combined behaviour and risk-based approach that focuses on how tenants actually behave while living in a rental home. 

“While Husmus is still in its early stages, over 1,000 landlords and 3,000 tenants have already successfully used the platform. Twelve months after launching, [fewer] than one per cent of those tenants defaulted on their rent.”

Husmus claims to provide cover and technology that helps landlords and tenants better access and afford private rental homes with insurance cover against damage or defaulting.

It describes this process as a “more inclusive” alternative to renters having to provide guarantors for six months ahead.