DAS to underwrite new scheme.
A new insurance product will free tenants from having to raise a deposit before moving into rented property.
Paragon Advance, the lettings industry expert, has launched 'No Deposit' to enable landlords to let accommodation without asking for any deposit.
An insurance policy can be purchased for a fixed £145 fee, to provide protection against loss or damage to the property caused by the tenant.
Bryn Cole, managing director of Paragon Advance, said: “It’s always been hard for tenants to raise a deposit on top of their first month’s rent and the pressures on disposable income in the current economic climate aren’t going to make that any easier.
“No Deposit offers landlords peace of mind that they will be able to recover the cost of any dilapidation or damage to their property, without requiring the tenant to tie up their money for the duration of the tenancy.”
The process includes a rapid response mediation service during which both landlord and tenant are encouraged to come to a mutually agreeable solution to any dispute over dilapidations.
The scheme is underwritten by DAS Legal Expenses, who will negotiate on behalf of the landlord to recover damages up to the value of one month’s rent, and provide up to £50,000 in legal costs if necessary.
Alex Manning, DAS corporate account manager, said: “This really is a revolutionary solution to a familiar problem that will benefit everyone in the letting transaction.
“Landlords can be confident that their interests will be suitably protected, while tenants can move home without needing to find the extra money for a deposit at what is always a very expensive time.”
