A.R.E.S Lettings has recognised the potential problems for both landlords and tenants when it comes to deposits on rental properties. With more and more legislation which landlords have to adhere to for holding tenants deposits and the increasing cost of living which may mean tenants can’t afford the upfront cost of a deposit, we thought it was about time something changed! Through Paragon Advance A.R.E.S Lettings can provide our tenants and landlords Smart Deposit Solutions.

Smart deposit is a warranty product which benefits both the landlord and the tenant. It allows the tenant to move into a property without having to find a large, sometimes unaffordable upfront sum and it covers the landlord for damage to the property AND unpaid rental.

SORRY THIS SCHEME IS NOT OPEN TO DHSS.

Benefits for Tenants

• No large upfront deposit has to be paid, just a small fee to us for providing the warranty cover.
• Tenants can move into properties quicker as they won’t have to save for a deposit or wait for their deposit on a previous property to be released from a deposit scheme.
• Tenants become a more attractive proposition to landlords as they can move in quicker.
• Tenants can move out without the worry of having to wait for their deposit to be repaid to them.
• The one off fee provides a smart deposit solution warranty for the life of the tenancy, however long that may be (only applicable for damage cover, the last months unpaid rental cover must be renewed and paid for by the landlord in line with the tenancy agreement).

Benefits for Landlords

• Landlords can attract a wider range of tenants by not having to ask them to provide a deposit.
• Once all tenants have successfully passed our full referencing process, they pay a one off fee to us for the smart deposit solution, this avoids them having to pay a deposit.
• Landlords do not have to worry about holding a tenants deposit in a costly national scheme.
• Landlords have damage (dilapidations) cover for up to 2 months rental value. The normal deposit taken from a tenant is between 4 and 6 weeks rent, so the landlord actually has increased protection using smart deposit.
• Smart deposit covers the landlord if the tenant vacates the property without paying the last months rental (or a proportion of it) as well as covering damage costs.
• If a claim is accepted, smart deposit process payment within a 14 day period so the landlord doesn’t have to wait too long. This may not be the case if requesting a tenant’s deposit out of a national scheme.

Price - £170.37 including vat for the life of the tenancy ( this is only applicable for the dilapidations cover, the last months unpaid rental cover is renewable in line with the term of the tenancy agreement at a cost of £22.00 including vat per renewal) Administration charge may apply.

Example 1.

Mary moves into a property and takes out a smartdeposit solution warranty. The 6 month tenancy ends, Mary moves out and the inventory shows that Mary has damaged a table which was in excellent condition at the start of the tenancy and is now ruined. The table is worth £900 and Mary’s monthly rental amount was £500. The landlord provides all the relevant documents to make a claim, the claim is accepted and he received his £900 within 14 days. FCC Paragon then pursue the tenant for all costs or arrears.

Example 2.

Simon moves into a property and takes out a smart deposit solution warranty. The initial 12 month tenancy ends and the landlord decides to renew the last months unpaid rental cover element of the smart deposit solution warranty, as the tenancy goes on to a periodic basis. 2 months later Simon gives notice, however he cancels his direct debit for that months rent and when he leaves after the month he owes the landlord 1   months rent. The landlord notifies us immediately and within 14 days of the claim being accepted the landlord has been paid the rental amount of £700, which Simon owed.

For more information on the Smart Deposit Solution please contact us on 01202 834 121 or register your details with us