No Deposit Insurance vs Standard Deposit | Fuchsia Homes

No Deposit Insurance vs Standard Deposit

Nil Deposit Scheme for your Tenants

When a tenant moves into a new rental home finding a deposit can be tough when their previous deposit hasn’t been returned. In addition to this, the tenant is paying their first month’s rent and the costs associated with moving.

How does it work?

  • Your tenant pays a Nil Deposit service charge equivalent to 1 week’s rent plus VAT to our provider, Let Alliance.
  • The Let Alliance Nil Deposit service manages the payment of any entitlement for any breach of the tenancy agreement up to a maximum of 6 week’s rent, via Fuchsia Homes.
  • The tenant will reimburse Let Alliance for the sum agreed, or determined by an independent adjudicator in the case of a dispute.
  • For rentals with more than one tenant a lead tenant is nominated.
  • Tenants’ liability insurance is in place for the complete tenancy term and the tenant provides a copy of their insurance certificate.
  • When a tenancy is extended, the Nil Deposit scheme can be extended with the tenant paying an extension service charge of £25 plus VAT to Let Alliance, and the Scheme is renewable every 12 months as a minimum.

What’s in it for you?

  • Nil Deposit as an alternative to a traditional deposit encourages more interest and applications from tenants for your property.
  • Your property is more attractive compared to others, where only a traditional deposit is required.
  • Providing choice assists in renting your property faster.

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