It applies to all assured short-hold tenancies in England and Wales where a deposit is taken which is equivalent to one month’s rent or 5 weeks rent. Once we’ve received a deposit, landlords and letting agents have 30 calendar days to protect it where as in Northern Ireland the deposits must be registered within 14 calendar days. If this is not done, the landlord could be liable to repay the full deposit plus, up to three times the deposit amount to the tenant. If the deposit isn't protected and the landlord or letting agent wants to evict a tenant, they may not be able to. Rioten’s will always register the deposits in a timely manner.
At Rioten’s we only offer Deposit protection under custodial schemes which is free for landlords. How custodial schemes work is the government-backed deposit scheme holds the tenant’s deposit throughout the period of the tenancy, and administrates the repayment once they vacate the property.
A Zero Deposit Schemes is an insurance policy which is available in England and Wales. A tenant pays, typically, a week’s worth of rent plus a yearly admin fee instead of the traditional security deposit however, it is non-refundable. They also agree to pay for any damages they may cause to the property, and any financial loss due to the landlord. If a claim needs to be made, the insurance company will pay out to the landlord up to the value of 5-weeks rent. Consequently, if you use a zero-deposit scheme it reduces the initial cost of moving significantly for tenants.
Landlords still get their usual protection, just like in the case of a traditional deposit protection scheme. However, allowing a zero-deposit scheme brings to the table more potential tenants to choose from. This can also translate into shorter void periods.
This can be attractive if tenants are moving from a rental property and their current deposit is still tied up. Not having to wait to save up for a security deposit means tenants might be able to move more quickly.