How can a no deposit option for tenants benefit landlords?

Mather Marshall has launched a pioneering No Deposit Option (NDO) designed to reduce financial pressures on tenants during the moving process, while also offering more security to landlords.

So how does it work?

Finding a deposit to rent a home can be a challenge for many tenants. The No Deposit Option (NDO) works by removing this requirement from any new tenancy, allowing tenants to rent a home with no deposit whatsoever, saving  the typical individual hundreds of pounds in upfront costs.

Instead,

Your tenant pays a Nil Deposit service charge equivalent to 1 week’s rent plus VAT to mather Marshall.

Your tenant has liability insurance in place for the complete tenancy term and provides a copy of their insurance certificate

Our Nil Deposit service manages the payment of any entitlement to you, up to a maximum of 6 week’s rent, for any breach of the tenancy agreement agreed by the tenant

Your tenant will reimburse Mather Marshall for the sum agreed, or determined by an independent adjudicator in the case of a dispute, within 14 days of notification

We will pay you the claim amount on receipt of monies from the tenant or we’ll pay you when the tenant doesn’t pay and pursue the tenant to recover the outstanding debt.

What are the benefits of No Deposit Fee for landlords?

By making a property available to NDO tenants, landlords stand to benefit in several ways. Firstly, every rental property marketed under the scheme will be indemnified by Mather Marshall for the equivalent of six weeks’ rent – that’s an additional  50% more protection than a standard deposit!

What’s more, Mather Marshall will handle any discussions with tenants about potential damages and ensure they are adequately resolved before a new tenancy begins.

Properties marketed under NDO are also likely to attract greater tenant interest, leading to quicker and more reliable lets that stand the test of time.

Landlords should be aware that the process of letting a property remains exactly the same under NDO; it simply comes with the added perks of having an extra 50 percent protection in the form of cover and all negotiations with tenants handled by our staff.

How are damages dealt with?

The tenant is still liable for any damages that are experienced during their tenancy or any cleaning costs incurred upon check-out. Mather Marshall will continue to carry out the inventory and check-out process.

If any issues arise that may require repairs, Mather Marshall will liaise with the tenant and arrange for them to be completed. Landlords can let with NDO in complete confidence that their interests are protected at all times and the process between tenancies will move as quickly as possible.

To find out more about our services for landlords click here.