Deposit-free renting is growing increasingly popular, with more providers than ever before now providing tenants with a range of nil deposit schemes, but is a tenant who cannot afford to find the deposit an inspiring applicant for a landlord’s property?
A recent YouGov survey found that 43% of renters would prefer to see tenant deposits scrapped and replaced with deposit protection insurance that pays for any damages to the property at the end of a tenancy, with tenants typically required to pay into the scheme through either a one-off payment, such as a week’s rent, or a monthly fee.
Tom Crosthwaite, head of sales at RentMyHome.co.uk, commented: “Nil deposit schemes are a helpful alternative to a traditional deposit as they provide protection for landlords at the same time as helping tenants who don’t have big reserves in place to pay a month’s rent and six week’s deposit up front.