Our partners put common deposit alternative myths to bed

Despite a significant rise in the demand for deposit alternatives such as flatfair No Deposit, they still remain relatively new to the market. Which means there are a number of misconceptions from agents and landlords.

So we sat down with three of our partners at Belvoir Grantham, HouseShaw and Hunters to shed some light on common misconceptions around deposit alternatives.

Deposit alternatives are only for particular tenants

"It is very rare we cant offer it to all of our clients. Only for company lets and tenants who cant meet affordability to pass referencing."

- Chloe Robinson, Tenancy Manager, HouseShaw

“Deposit alternatives can benefit a wider range of tenants, instead of a large upfront deposit, alternatives often require a smaller, non-refundable fee. This frees up cash flow for tenants who might struggle with a traditional deposit. By offering an alternative to the traditional deposit method, we lower up front moving in costs so tenants don’t have to find a large upfront deposit which can be very hard for many especially if their deposit is tied into their other tenancy and not refunded until the move out.”

- Carly French, Director, Belvoir Grantham

“flatfair is not just for certain tenants, I do think it opens the property up to more tenants however, getting the property let faster. Some tenants may not want to put a monetary deposit down as they may be saving for a mortgage deposit, or may have a full house of furniture to buy, so a large deposit may not be within their reach."

- Elisa Bayliss, Lettings Manager, Hunters

Deposit alternatives can delay move-ins

"Absolutely not! flatfair is super quick to validate all of our plans."

- Chloe Robinson, Tenancy Manager, HouseShaw

“Deposit alternatives can actually streamline the move-in process in several ways. Compared to traditional deposits that require paperwork and potential delays in returning funds, deposit alternatives are often handled electronically. This can lead to a quicker move-in as there’s less paperwork for both landlords and tenants. Properties are letting faster and attracting more quality tenants and tenants haven’t got to wait to fund a larger deposit so are happy to move in as soon as they are able. The move-out process can be easier and quicker with deposit alternatives too.”

- Carly French, Director, Belvoir Grantham

“In our experience, the process is the same time wise, we have not seen any delays when we are using flatfair, in fact it can speed the process up, as the tenant does not need to find a traditional deposit."

- Elisa Bayliss, Lettings Manager, Hunters

Deposit alternatives cost agents and landlords money whereas traditional deposits don’t

"Again not! The cost is down to the tenant to pay!"

- Chloe Robinson, Tenancy Manager, HouseShaw

“Yes, I agree with Chloe! It also is a really good talking point on viewings and people love the fact that they will get an option of a low deposit.”

- Chloe Fair, Lettings Negotiator, HouseShaw

“While there's no upfront cost with a traditional deposit, managing them can be time-consuming for agents and landlords. This includes paperwork, adhering to deposit protection scheme regulations, and potentially handling disputes at move-out. Deposit alternatives can offer valuable time-saving benefits and potentially attract more tenants, making them a worthwhile option for many agents and landlords.”

- Carly French, Director, Belvoir Grantham

“We have been using flatfair for many years, and I can not recall one incident where it has cost money to us or the landlord, quite the opposite, the landlord doubles their protection, it’s a win win.”

- Elisa Bayliss, Lettings Manager, Hunters

We hope this helps you to better understand deposit alternative products and their unique benefits to you and your clients.

Are you interested to learn how flatfair can elevate your letting agency? Book a no-obligation call today.