What is a Reposit Switch and when can it be used?
A Reposit Switch is a type of Reposit that tenants can purchase during their tenancy or at renewal. It enables them to "switch" from a cash deposit to a Reposit, allowing them to receive their original cash deposit back while increasing the landlord's protection from 5 weeks' rent to 8 weeks. Switching to a Reposit can also help retain tenants and reduce void periods or rent arrears.
Is my tenant eligible for a Reposit Switch?
To be eligible for a Reposit Switch, the tenant(s) must not have:
Any outstanding rent arrears
Any rent arrears since the start of their tenancy or the last 6 months (whichever is sooner, rent outstanding more than 14 days is considered arrears)
Agreed to any rent payment holiday since the start of their tenancy or the last 6 months (whichever is sooner)
An increase in rent of more than 10% each year unless the tenant passes affordability checks again
In addition to the above, there must not have been any material change to the tenancy or the tenant(s) financial situation that would give reason for the tenancy to be ended.
Note: All tenants in the property must agree to use Reposit Switch (there can’t be a split of deposit and Reposit Switch users), and the standard Reposit eligibility criteria must be met.
How do I initiate or use a Reposit Switch?
When creating a Reposit Switch, select "Existing tenancy" on the Reposit dashboard.
What date should the Reposit Switch start?
The Reposit start date should be the date the addendum is signed. The tenant(s) must pay for the Reposit Switch to be active and provide coverage for the landlord.
Note: Do not return the tenant's deposit until the Reposit Switch has been paid for.