In some zero-deposit schemes, the tenant makes a payment. The NRLA has partnered with Zero Deposit to bring all of the benefits of their market leading and fully FCA regulated deposit replacement guarantee to our members. Tenants who choose a deposit replacement scheme have increased liability to comply with their tenancy agreement. Deposit Replacement Insurance provides protection for our landlords, as they can claim up to two months rent to cover damages or rent arrears, which they’d receive much faster than the traditional schemes capped at five weeks rent. Zero Deposit. Feeling like I was lied to and mislead, as a landlord I would not accept zero deposit scheme again. It is expensive for tenants - it looks like a good deal, but inevitably when you put a layer of profit into any arrangement the cost goes up. With a sharp rise in the number of letting agents signing up to the Zero Deposit Guarantee, underpinning hundreds of tenancies across the UK, the people behind the scheme, predict that the tenant’s deposit replacement product, will soon become a major part of renting for agents, landlords … For the cost of just one week's rent, tenants can purchase a Zero Deposit Guarantee instead of leaving a traditional deposit. Deposit replacement schemes usually give landlords more weeks of protection against unpaid rent and dilapidations than a traditional tenancy deposit, which is capped at five or six weeks’ rent under the Tenant Fees Act. Response to your response, its not that I'm unhappy with the outcome, it just the fact that people within your organisation lied, mis-guided and gave a service thats not worthy of rations You get a tenant who's finances are close to the bone & may fall into difficulty 2. A couple of other schemes work in a similar way but with a vital difference: the tenant pays for the policy. Under the scheme, as no deposit is received by the Landlords, this ultimately means that Landlords do not have to register and lodge the deposit with an authorised deposit protection scheme. Landlords can opt in to a new insurance scheme that would cover the cost of any damages by the tenants, rather than taking the money from their deposit Hollie Borland 11 … In others, a fee is paid by the landlord or letting agent, so the tenant doesn’t need to pay anything upfront, apart from their rent. The deposit replacement scheme, launched earlier this year, allows tenants to acquire an insurance policy in lieu of a deposit. The most attractive thing about the zero-deposit scheme is that these costs are immediately and significantly lowered. Landlords. I think there are 2 problems with the zero deposit scheme: 1. 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