Over the years, renters have often felt like they're the ones fronting the costs for moving home. From letting agent fees to security deposits (which could be as much as eight week’s worth of rent), most renters needed to fork out thousands of pounds before getting the keys to their new home.
The tenant fee ban introduced in 2019 alleviated some of the burden and offered much-needed relief. So too did legislation that capped security deposits at five weeks. Suddenly, renters found themselves saving hundreds of pounds, which is eminently better than paying thousands.
The introduction of zero deposits eased things further, with renters paying only one week’s worth of rent instead of five — and in some cases, nothing. But how important are zero deposits for today’s renters, and does it offer everything it says on the tin?
Are zero deposits important for renters?
In short, yes. If renters can save money while getting the same quality of service, it’s a no-brainer. But zero deposits are still relatively untalked-of, meaning plenty of renters don’t fully understand how they work or think they’re too good to be true.
So while it might seem like renters aren’t particularly fussed about zero deposit and zero-fee options in some cases, the reality is that they probably aren’t informed. Just as pet-friendly homes and bills inclusive of rent rank at the top of renter lists, so too does the ability to save thousands of pounds through a zero deposit scheme.
Yet, it’s vital that they have all the information to hand, so they can make an informed decision — one which we reckon will show just how much renters care about zero deposits.
Will somebody call security?
Security deposits still prove costly for renters. One week’s rent of £300 equates to a deposit of £1,500 over five weeks. And then there’s the whole dispute factor that comes with no guarantees of deposits being returned if landlords believe there is damaged to their property.
This can make moving to a new home, where renters also need to pay a deposit, tricky. Government rules indicate that deposits should be returned within 10 days, but disputes often mean it can be much longer.
The average deposit is around £1,800 in London and £1,400 nationwide, which is a considerable sum. But if your renters know they won’t need to cough up so much money to move in, they’re bound to be more interested in renting in your properties.
From zero to hero
On the face of it, zero deposits seem like a no-brainer. You’d imagine that an overwhelming number of renters would jump at the chance to sign up to a scheme that doesn’t require a large sum of money upfront.
Many Build-to-Rent communities believe so, offering their properties with zero deposit schemes. Letting agents seem to be believers too: in 2019, more than 800 agents signed up to the scheme to offer it to their renters.
Most renters appreciate the financial freedom offered by zero deposit products, while you can still enjoy the protection provided by the schemes. With every party happy, it would seem zero deposits are a win-win.
Giving renters clarity over zero deposits
Modern-day renters value transparency, and getting information about zero deposits doesn’t always come easily. If your Build-to-Rent community offers zero deposits, it’s worth digging deep into the details and making a song and dance about the fact renters can save thousands by living in your homes.
And if you don’t have zero deposits, what are you waiting for? Put that zero deposit scheme in place and shout it from the rooftops. Renters want to buy into the entire renting ecosystem, and that starts with deposit-free renting and ends with a community space where they feel at home.
Zero deposit renting with Movebubble
Movebubble lets renters choose the option of searching for a home by specific requirements, including the ability to look for zero deposit properties. Partnering with us means you'll get your homes in front of informed renters who desire deposit-free renting, increasing your chances of finding high-calibre renters.