Why tenants love Zero Deposit™: an agent explains
Emma Kerrywood, Head of Residential Lettings at Dacre Son and Hartley in Ilkley, says that becoming a no deposit estate agent is transforming the lettings process for tenants and giving a fresh appeal to properties that are proving slow to move.
No more stressful saving
Emma explains that no deposit renting offers a “huge opportunity” for tenants to rent a property without needing to save for long periods. Traditionally applicants were required to come up with a full month’s rent, agent fees, and five to six weeks’ deposit, but she points out that the launch of Zero Deposit’s no deposit option - together with the tenant fee ban - has meant that tenants no longer need to face big financial pressures when they move home. Applicants now pay a fee based on one week’s rent to cover their Zero Deposit™ Guarantee. Emma adds that both landlords and tenants are reassured to know that Zero Deposit is backed by the FCA and partnered with The Dispute Service (TDS), a trusted dispute resolution organization. One of the attractions of Zero Deposit for Emma is that tenants can now move in a way that is “much more fluid” and she is clearly excited by the benefits this offers to her business.
Attractive to tenants
Is it true that letting agents offering no deposit properties attract more tenants? Emma says ‘yes’ she has noticed a significant increase in interest after adding the Zero Deposit flash banner to properties on Rightmove. Landlords who had initially been reluctant to offer the Zero Deposit Guarantee on they rental properties had their minds changed. After a few weeks on the market and a couple of price reductions, one landlord finally agreed to a no deposit option with excellent results: “There was a real increase in the number of enquiries that came through,” says Emma, “and it was let within a week.”
Proactive applicants
Since Dacre Son and Hartley became Zero Deposit agents, Emma’s team has also met applicants who are proactively seeking out no deposit properties. She explains “Sometimes people will ask about a property that doesn’t have Zero Deposit on offer”, but they will proactively be seeking a Zero Deposit Guarantee and will ask her team if it could be offered under a deposit replacement scheme. After speaking to landlords about the scheme she usually finds that, “They let it straight away when the tenants take out a Zero Deposit option.” With so many applicants showing interest, Emma is keen to talk about the benefits of a Zero Deposit Guarantee. “For us so far it’s been a really positive experience,” she says. “I think that offering Zero Deposit and our partnership with them could give us a competitive advantage … I do think it’s the strongest product on the market.”
Find out more about becoming a Zero Deposit estate agent.