What is a Switchover and when is it used?
A Switchover is a type of Reposit that tenants can purchase during their tenancy or at renewal. It enables them to "switchover" 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 over to a Reposit can also help retain tenants and reduce void periods or rent arrears
Is my tenant eligible for a Switchover?
To be eligible for a Switchover, 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)
All tenants in the property must agree to use Reposit, there can’t be a split of cash deposit and Reposit users
Changes to the existing tenancy agreement (e.g. changes to the tenants named on the agreement)
An increase in rent more than 10% each year unless the tenant passes affordability checks again
Note: All tenants in the property must agree to use Reposit, and the standard Reposit eligibility criteria must be met (e.g. DSS tenants are not eligible).
What documents are required for a Switchover?
You will need to provide:
A signed Reposit addendum to the tenancy agreement (no new tenancy agreement is required)
How do I initiate or use a Switchover?
When creating a Reposit, select "Existing tenancy".
What date should the Switchover Reposit start?
The Reposit start date should be the date the addendum is signed. The tenant(s) must pay for the Reposit to be active and provide coverage for the landlord.
Note: Do not return the tenant's deposit until the Reposit has been paid for.