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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Private renting. No deposit option. Deposit replacement guarantee product. Help viewing today

32 replies

Qwerty19 · 07/09/2019 10:56

I've posted previously (possibly under my old Name) *about our need to move due to expansion of family.
Were currently. HA..no.luck with mutual exchange, and a 7 to 10 Yr wait.
We DO NOT expect the LA to house us because our circumstances changed

So we were deciding whether to rent private or use lounge as our room.. However we'd still need to store our stuff in the bedroom meaning no space for kids stuff. The rooms are very small. Plus lounge is open plan so no privacy at all

We've been offered to view a house today! 1 mile away..can keep ds at his school. Local to family etc etc. We have 1k deposit in cash. Rest can be sorted if needed but they mentioned a no deposit option?

What does this mean? It says about a deposit product or Something?

I am. Terrified of giving up a secure tenancy however this just isn't feasible to stay here. And it's looking like we may end up with dsd with us permanently too for reasons I cannot go into so therefore we need to have everyone's interests in mind.

OP posts:
LIZS · 07/09/2019 10:58

Is it a scheme where LA or a charity guarantee the deposit ?

Original poster
Qwerty19 · 07/09/2019 11:00

I've skim read it on goodgle and it says replace with a product supplied by Tennant? I'm useless with small print and things.

OP posts:
RezCowgirl · 07/09/2019 11:01

We paid no deposit in our rental however we have a guarantor - someone who is a homeowner or has £15k in savings.

Original poster
Qwerty19 · 07/09/2019 11:03

When I spoke to them this morning I asked if they needed guarantor and they said no.?

OP posts:
katewhinesalot · 07/09/2019 11:04

No, it's a new thing. You pay a small insurance policy each month that will protect the LL instead of a deposit.

Original poster
Qwerty19 · 07/09/2019 11:06

Ah that makes sense. I'll still ask when we view if we like it. But I like to have a rough idea.

OP posts:
VioletCharlotte · 07/09/2019 11:07

It's a new thing some estate agents are offering to make it easier for people to move into rented (from their perspective it makes it easier for them to rent more properties). Romans and some of the bigger agents have been offering this scheme for a year or two now. Instead of paying a deposit, which would normally be you 1.5 months rent, you pay an additional monthly cost on top of the normal rent. Just make sure you check exactly what you'll be paying before you accept a property.

Hoppinggreen · 07/09/2019 11:21

I think it’s a Insurance scheme. Instead of a deposit either the Tenant or LL pay an amount to a3rd party company who cover in the case of damage etc ( things the deposit usually covers)
It’s pretty new so I’m not sure of the pitfalls but it’s becoming more common, even for some higher end properties

Original poster
Qwerty19 · 07/09/2019 11:27

Fab thanks. Useful to know and will look into it with them.

OP posts:
katewhinesalot · 07/09/2019 18:34

How did you get on?

Original poster
Qwerty19 · 07/09/2019 18:39

Yeah we liked it. Taking holding fee down Monday. The no deposit he said was pay a weeks extra rent.. But it's non returnable.. Then if any damage done when vacate then you get a bill. But we're very house proud so wouldn't happen and if did by accident we would get professionally repaired or replaced.

OP posts:
RainOrSun · 07/09/2019 18:43

We looked into this as landlords.
You dont paid a deposit, but you do pay extra each month. You need to look at how much extra it costs each month. And my understanding is you wont get it back!
Personally, It sounds like another way of extracting cash from those with the least money. Those with the ability to find a deposit pay less overall, unless there are big deductions. Happy to be corrected tho.

Original poster
Qwerty19 · 07/09/2019 19:11

Thanks I asked about the extra pm. And they said no its just a week upfront.. But will. Double check Monday thank you for 1 Letting me know

OP posts:
katewhinesalot · 08/09/2019 00:05

The week up front may be like paying an annual insurance policy in one go rather than installments. I'm sure the agent who was trying to get us to market our rental with them explained that it could be spread over the year. I guess one weeks rent spread over 12 months is a bit more affordable for some. This would be every year though.

Check how often this one week is payable.

katewhinesalot · 08/09/2019 00:08

It's a bit dodgy getting a bill as that could be expensive - unless you then claim from the policy. I think that is possibly what they meant. Double check that.

BMW6 · 08/09/2019 00:18

Interesting. I've noticed ads (DirectLine?) promoting LL insurance against non payment of rent, so wonder if this is similar but tenants paying the premium?
I wonder if it would lead to Insurance companies chasing ex tenants for unpaid rent rather than landlords?

Great news for LL if so.

BMW6 · 08/09/2019 00:21

(Obviously that would be if Insurance co paid rent to LL when rent not paid by tenant)

DidYeAyee · 08/09/2019 00:25

I had this option with a letting agent where they took extra payments on top of rent to cover "deposit".

Don't know the ins and outs as we never went with them in the end but I think it was almost lile paying the deposit amount in installments.

Original poster
Qwerty19 · 08/09/2019 00:27

I will check if a yearly thing. In fairness he was telling me a bit about the landlord and he seemed decent?.. He used to rent to a company that had live in carers for disabled young people. But the last young person caused a lot of grief in the area.. I'd heard d of this as my dad lives a street away.. So he decided rather than look. Bad on himself and there was a lot of police involvement that he'd rather rent to a family.
We also said we get a UC top up on dh wage and he said it was fine as it's the ' way things are now and people. Shouldn't be penalised' I hope he's OK and I'll write all these suggestions down for when I take the fee on Monday.

OP posts:
Original poster
Qwerty19 · 08/09/2019 00:28

We have the deposit anyway so if it seems a bit iffy I'd rather pay the deposit.. But the extra cash wouldn't go a miss.. The deposit is 1.1k

OP posts:
Babysharkisanearworm · 08/09/2019 00:36

Deposits put into a protected scheme get returned at the end if no damage.
This sounds like you hand over a week's rent for no benefit as you still get a bill and you don't see that money again.
Tempted to say, go the traditional route then at least you get it back.

Original poster
Qwerty19 · 08/09/2019 00:41

Thank you. As I said and as I said to the agent. I keep a very decent home now.. If anything we're to happen in the rental I would rectify it accordingly.. Its u furnished so nothing like that to get damaged.
We would be replacing the carpets.. Which he said would get put in writing.
I would keep a paper trail of literally everything aswell.

I'll ask dh what he thinks and any questions he may have as he can't come Monday as at work.

OP posts:
whatdoidonowffs · 08/09/2019 02:23

I’ve used this
I paid a weeks rent up front if there’s any damages at the end of the tenancy then you pay for them if not you pay nothing
The only extra I pay is a £26 renewal fee every year
The money saved was certainly useful 👍

YesThisIsMe · 08/09/2019 09:37

It’s an insurance policy for the landlord not you - instead of giving the deposit you pay the insurers a smaller amount to act as your guarantor, but you are still liable for any amount that would normally be withheld from the landlord, and if you don’t pay it (after going through the same mediation processes that you’d use for a deposit) then they’ll send their debt collectors after you.

If you don’t have the money for a deposit it’s probably a reasonable alternative to borrowing it as long as you’re clear in your mind that you’re still liable for damages and missed rent at the end.

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