Intus Lettings is proud to share that we have recently partnered with Reposit, which gives landlords more protection in the rental market. In this blog, we’re going to let you know more about what this partnership means for you and the benefits of using this rather than traditional deposit systems.
What is Reposit?
Reposit is a deposit alternative scheme which gives landlords better cover and helps tenants to access rental properties more easily. It is regulated by the Financial Conduct Authority, giving you peace of mind.
Usually, when tenants agree to rent a home, they have to pay a security deposit, which is capped at 5 weeks’ rent. At the end of the tenancy, they may receive this deposit back in full, a partial amount or none of it. The money can be used to cover damage to the home and end of tenancy cleaning fees.
Using the alternative scheme offered by Reposit means that landlords can access 8 weeks’ worth of cover, which means 60% more protection when compared to traditional deposit methods. This alternative solution is completely free for landlords.
Additionally, tenants can mitigate the usual 5 week cash deposit and choose to use Reposit, which only requires 1 weeks’ rent as cover, subject to a minimum of £150. This is non-refundable for tenants.
How does Reposit work?
In the beginning, the tenant will be offered the option of Reposit or a cash deposit. If they choose Reposit, then we can begin our checks.
Once the tenant has successfully completed referencing, then we will begin the process with Reposit and invite the tenant to sign up to the platform. Once successfully signed up, the tenant will pay the Reposit fee of 1 week’s rent (minimum £150).
Once the tenant has paid the fee, the landlord is covered by Reposit for 8 weeks’ worth of rent.
Tenants who sign up to use Reposit rather than paying for a large cash deposit of up to 5 weeks’ rent will commit to being liable to pay any end of tenancy charges and give us authority to collect these funds from them.
Please be assured that all tenancy checks remain in place, including checking affordability and seeking out references.
What happens at the end of the tenancy?
At the end of the tenancy, we will complete our check out process, comparing evidence against the start of the tenancy and inspections throughout. If there is damage to the property, we will input any fees and evidence into the Reposit platform. Tenants will be notified and have 7 days to respond. The tenants will either accept and pay, or begin a dispute.
If they pay, then you will receive the money and the Reposit account will be closed.
What happens if there is a deposit dispute?
If a tenant disputes fees and evidence, then they must propose a settlement to you. You will have to decide whether to accept this and receive the money or reject it and propose a final amount.
If you and the tenant cannot agree, the tenant must pay £60 to raise a formal dispute, which will only be refunded if they are successful. A third party adjudicator will assess the claim and evidence before making a decision within 14 days.
Upon receiving the result, Reposit will pay the amount awarded. If the tenant fails to pay at this stage, Reposit will register the claim with their insurers for payment.
If the tenant does not respond, they will attempt to collect funds from them for 14 days. If no payment is made, they will claim through their insurer. This process will be handled by Reposit, ensuring a seamless experience for landlords.
Reposit will always attempt to recover the money from the tenant first. If the tenant defaults on payment, their insurers will step in to settle the charges.
What are the benefits of using Reposit for landlords?
More protection for landlords
Typically, landlords only ever receive protection for up to 5 weeks’ rent and due to increased regulations for landlords, they risk paying up to three times the deposit amount to the tenant as compensation if they are not registered properly.
Reposit provides landlords with 8 weeks’ worth of cover, which means 60% more protection. Read about the Renters’ Rights Act.
It’s free for landlords
Landlords don’t need to pay a penny to benefit from this increased cover. If there’s a dispute that the landlord wins, you will always get the pay out, whether that comes from the tenant themselves or Reposit’s trusted insurer.
Faster lettings
Void periods cost UK landlords over £3bn per year, with individual landlords losing an average of £1,869 per year. This is an eye-opening figure and one that can be reduced through this alternative deposit scheme. Read our blog on how to reduce void periods.
Reposit allows tenants to access lower upfront costs for renting, which means the whole process becomes more affordable.
Streamlined claims
While every landlord hopes for minimal claims, they do sometimes happen. Traditional cash deposit schemes can take 6 weeks or more for claims to be settled. In contrast, Reposit will obtain an adjudication verdict within 14 days.
This faster dispute resolution is great for landlords as it means you can focus on what’s really important.
We’re really pleased to be partnering with Reposit and believe this will be an extremely positive change for both our landlords and tenants.
If you’d like to know more about our partnership, please don’t hesitate to get in touch. Our team will be more than happy to answer all of your questions.
