An Alternative to Tenancy Deposit Schemes
A partnership between PropTech company Reposit and property management company Way of Life provides a deposit replacement alternative for UK residential tenants.
Founded in 2015, Reposit is a pioneer in the growing deposit replacement sector in residential lettings and provides and also helps tenants ease the financial burden of renting by enabling them to secure a property with just a week’s rent.
Way of Life is a property management company currently managing over 550 homes in the UK, with another 300 launching this summer.
Under the terms of the partnership, Way of Life has also become a named beneficiary of Reposit’s insurance policy which protects up to eight weeks of rental payments for eventualities which would otherwise be covered by a traditional tenancy deposit.
Explaining his company’s decision to work with Reposit, Sowgol Zarinchang, Way of Life’s Managing Director, said:
“We want to offer an excellent level of service to our customers. Finding an alternative deposit option was always high on our agenda. After looking at the various deposit replacement offerings, we have chosen to partner up with Reposit to offer a viable option to our customers. It’s ease of integration into our services and the dedication towards compliance under FCA regulation and FSCS protection made the choice easy in the end.”
According to figures recently released by the Tenancy Deposit Scheme, the average rental deposit in England and Wales is £1,041, whilst in London, it is typically £1,750. Additionally, market research conducted independently for Reposit found 91 per cent of tenants in a survey sample had paid a deposit, with 49 per cent indicating they borrowed from family or had taken out loans and even payday loans. Tenants moving to new properties are also expected to provide the deposit for their new contract before the deposit on their previous property is released, which can cause cash flow problems and stress.