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Due to deposit alternatives such as flatfair No Deposit not being the “traditional” way of securing a rental, there still remains a number of misconceptions from agents and landlords.
So we reached out to a few of our partners who have offered our No Deposit solution for many years to hear their views and experiences on some common flatfair myths.
“Deposit alternatives attract a poorer quality of tenant”
“I would disagree with this. I believe that flatfair opens up options to more tenants, and typically are chosen on properties with a much higher rental amount. With third-party referencing, all standard referencing criteria are stuck to when using flatfair so there is no additional risk.”
– Lee Churchyard, Lettings Manager, Knight Edmonds
“I don’t think tenants see the flatfair option as anything other than a suitable choice. We are finding a lot depends on the tenant’s financial situation at the time of renting. The No Deposit option suits those who need a lower moving in cost and doesn’t attract a lesser quality at all.”
– Ricky Purdy, Director of Lettings, Dawsons Property
“Offering flatfair to our tenants and landlords simply gives them more choice and flexibility when renting a new home, with the rise in living costs, this means they can buy new furniture instead, it certainly doesn’t determine the quality of tenant we are attracting.”
– Nadine Orea Garcia, Head of Lettings, CGT
“The end of tenancy process can be longer with deposit alternatives as opposed to traditional deposits”
“After watching various cases go through an adjudication process with deposit schemes, I have seen flatfair deposit claims go through far quicker. It also allows the tenant to counter-offer to the landlord, potentially coming up with a resolution faster than you would do if the claim went straight to adjudication.”
– Lee Churchyard, Lettings Manager, Knight Edmonds
“It’s our experience that this is not the case. The negotiation process between us and the tenant is carried out more professionally via the flatfair system, and enables us to keep a log of all conversations should we need to go to arbitration later down the line.”
– Ricky Purdy, Director of Lettings, Dawsons Property
“The end of tenancy process is very slick and thanks to the online tech savvy platform, it can actually be quicker than going down the traditional route.”
– Nadine Orea Garcia, Head of Lettings, CGT
“If I don’t hold the deposit, how do I know that tenants won’t damage the property?”
“We have seen damages decrease in properties using flatfair. I use the common phrase ‘today’s money’ with a lot of my landlords. It stops the saying ‘take it out of the deposit’ as it is a forward claim that will be chased for. With other deposit options, typically we will see a tenant say ‘it’s money I haven’t had for years anyway, just take it out the deposit’. This isn’t the case with flatfair, it’s a current bill. Tenants tend to keep the properties in a better state to avoid adjudication.”
– Lee Churchyard, Lettings Manager, Knight Edmonds
“This is always the risk. However, providing the process and what tenants are buying into is explained correctly, highlighting their responsibilities as contract holders, this shouldn’t be an issue. It’s my view that rogue tenants are going to damage the property whether they paid a traditional bond or flatfair.
I think it’s a misconception to think that the bond the contractors pay into the traditional scheme is theirs to start with. Therefore, would they care if they get nothing back if it wasn’t theirs?”
– Ricky Purdy, Director of Lettings, Dawsons Property
“Tenants know that when they sign up to a flatfair bond they are still responsible for the return of that property, just as they are with a traditional deposit and they know they will still be due to pay any damages. We haven’t seen any increase in damages since using flatfair.”
– Nadine Orea Garcia, Head of Lettings, CGT
We would like to thank our partners for taking the time to help debunk some common flatfair myths. If you are a letting agent or operator sitting on the fence about offering a deposit alternative to your customers, we hope this blog assures you that flatfair No Deposit is a fair and secure alternative to offer as a choice to your customers.
To learn more about the benefits of offering our innovative deposit solution, reach out to sales@flatfair.co.uk who will gladly answer any questions you may have.
