Smart Deposit Solution - A ZERO deposit option for tenants and a smart option for landlords

Always striving to offer our clients the very best products and market leading services, bpl is pleased to be able to offer Smart Deposit Solution.

FCC Paragon has recognised the potential problems for both landlords and tenants when it comes to deposits on rental properties. With more and more legislation which landlords have to adhere to for holding tenants deposits and the increasing cost of living which may mean tenants can’t afford the upfront cost of a deposit, we thought it was about time something changed!

Smart deposit is a warranty product which benefits both the landlord and the tenant. It allows the tenant to move into a property without having to find a large, sometimes unaffordable upfront sum and it covers the landlord for damage to the property AND unpaid rental.

How does it work?

Once all tenants have successfully passed our full referencing process, they pay a one off fee to us for the smart deposit solution, which avoids them having to pay a deposit.

We then provide the landlord with a smart deposit warranty contract which covers them for any damage made to the property on vacation of the tenant (s) (up to a maximum of 2 months rental value will be provided for damage cover). This means that should the tenant damage the property, at the end of the tenancy the landlord can claim up to 2 months rent value in damages, or should the tenant not damage the property but move out owing the last month's rent, the the landlord can claim for the last month's unpaid rent. or a combination of both, if in the very unfortunate instance that the tenant does not pay the last month's rent and damages the property, the landlord can claim for 1 month's rental value damage cover and 1 month's rental value unpaid rental cover.

Benefits for Landlords

• Landlords can attract a wider range of tenants by not having to ask them to provide a deposit.
• Landlords do not have to worry about holding a tenants deposit in a costly national scheme.
• Landlords have damage (dilapidations) cover for up to 2 months rental value. The normal deposit taken from a tenant is between 4 and 6 weeks rent, so the landlord actually has increased protection using smart deposit.
• Smart deposit covers the landlord if the tenant vacates the property without paying the last months rental (or a proportion of it) as well as covering damage costs.
• If a claim is accepted, smart deposit process payment within a 14 day period so the landlord doesn’t have to wait too long. This may not be the case if requesting a tenant’s deposit out of a national scheme.

For more information please contact us on 0121 427 2200