July was a record month for No Deposit plans from our Build To Rent (BTR) sector landlords, with 80% more plans sold than the same month last year.
Our deposit alternative option is offered at approximately 77% of live BTR units and our partners include many of the most respected names in the industry, such as Greystar, Native Residential and urbanbubble.
flatfair CEO Gary Wright says that smaller, private landlords should follow the lead of the corporate providers in choosing the additional protection offered by our deposit alternative.
Gary said: “Understandably, landlords feel they are living in uncertain times. Local authority licensing is on the increase and the Renters Rights Bill is just around the corner."
“It’s not surprising that the bigger providers are looking at the rental landscape and seeking out as much protection as they can for their investments.”
With our deposit alternative, landlords receive free market-leading protection of up to 10 weeks’ worth of damages and/or rent arrears and if the amount owed exceeds this, we will pay the landlord upfront while recovering the debts ourselves.
Debunking common myths
With the extra protection offered with our deposit alternative, there can be a misconception that it costs landlords money. But it is completely free for both agents and landlords and they unlock double the amount of protection in the event of damage to property or rent arrears at the end of the tenancy.
There can also be a mistaken belief that deposit alternatives attract a poorer quality of tenant but in our case, the vast majority of No Deposit tenancies have closed without charges or they have been settled in full by the tenant. The remainder have set up repayment plans for the money to be fully recovered on behalf of the landlord.
Gary explains the importance of retaining landlords in the PRS: “A month on after the election, we can clearly see the direction of travel – that is very tenant-focused - landlords will be bound to be feeling pressure."
“The BTR sector – as a group of very large landlords – are absolutely committed to this product and see the value of it and we firmly believe that agents and smaller landlords would feel the benefit if they followed suit. They are the lifeblood of the Private Rented Sector (PRS) and they should feel that their businesses are safe and secure.”
How our market-leading protection works
Recently, an agent client decided to let their own property with No Deposit. Their tenants’ charges exceeded 10 weeks’ worth of damages and unpaid rent. In this particular case, they received 5 weeks’ worth of rent plus additional payment for redecoration, cleaning and repairs – full recovery.
Here is what the landlord had to say:
"Altogether, I was paid considerably more than I would have got from the deposit alone, and (absolutely crucial to me) a whole lot less fruitless hassle chasing down the debt. From personal and painful experiences of how a letting can go wrong, I was delighted with the outcome when I used flatfair."
The largest players in the BTR industry have already realised the importance of our protection levels and there is no reason why private landlords should miss out. If you are an agent looking to offer your landlords market-leading protection, then book a call with our team today.
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