What is a Reposit and how is it different from a standard tenancy deposit?
A Reposit is an alternative to the standard tenancy deposit. With a deposit the tenant pays a large sum (usually six weeks’ rent) which the landlord or letting agent is legally obliged to register with a deposit scheme (see The Housing Act 2004).
With Reposit, the tenant pays us a small fee, equal to just one week’s rent. The tenant is still liable for any damages, however we stand behind them and cover up to six weeks’ rent worth for damages or rent arrears. If there are any end-of-tenancy payments we pay them and recover the money from the tenant ourselves.
Don’t I have to take a deposit?
No, there is no obligation to take a deposit from your tenants. However, if you do take even £1 from a tenant as security, it must be registered within 30 days with one of the three tenancy deposit schemes according to The Housing Act 2004 legislation. If it isn’t protected within this time you can be fined up to three months’ rent and be unable to serve a Section 21 (eviction notice) to your tenants.
Can I offer Reposit as well as a standard deposit?
Yes, we encourage agents and landlords to Reposit as a choice rather than the only option. In some cases the landlord or tenant may prefer to pay a traditional deposit.
What is covered by a Reposit?
We honour whatever is in your own contact with your tenant up to the value of six weeks’ rent. This includes but is not limited to, any damages to the property or garden, missing items, unpaid rent and cleaning costs.
What’s the process if there are damages at the end of the tenancy?
At the end of the tenancy, after negotiating with the tenant as normal, you log in to your Reposit account, type in the charge and reason and it will be sent directly to the tenant(s). Your tenant can pay directly using any card and we pay it across to your nominated account in one working day.
What happens if the tenant disputes end-of-tenancy charges?
If a tenant disputes the charges, the case is raised to arbitration via a third-party company with over nine years’ experience in dispute resolution working for the deposit schemes.
Evidence is collected from both parties (copies of the check-out report, inventory, photographic evidence etc.) and the arbiter aims to have a decision within seven days. This decision is final and Reposit has no influence over this decision.
If the tenant raises a dispute, they are reminded that an additional £120 charge will be added in the event that the dispute is found wholly in favour of the landlord/agent, this is to discourage unscrupulous claims. No additional charge is levied if the dispute is split between the landlord/agent and tenant. We never charge a landlord or agent for disputes.
How can I be sure Reposit will be able to pay damages if the tenant defaults?
We understand landlords feel secure from having money in a bank account or held by a scheme. However, we offer up to six weeks’ rent for any damages or arrears as outlined in your contract.
If there are any damages, we always try to recover the funds from the tenant first using the bank details they used when they paid their Reposit fee. If the tenant is unable to pay for agreed costs at the end of the tenancy we endeavor to pay out within 28 days of an accepted claim or dispute decision.
Is my tenant still incentivised to look after my property?
Yes, tenants are still liable for any damages and they will still have to pay any costs at the end of the tenancy, exactly like they would with a deposit. We make the tenant fully aware that we are not offering them insurance when they sign our terms and conditions.
Additionally, we offer tenants a reduction in their Reposit fee for looking after the property. As long as the tenant leaves the property with no outstanding charges against them they will pay a lower fee on their next Reposit.
Which tenants are eligible for Reposit?
Tenants who pass referencing checks or who have a referenced guarantor are eligible for Reposit. We offer a full ID check, credit check, and anti-fraud to all our landlords and partner agents through the Reposit platform, increasing the savings when using Reposit.
Reposit is available for tenants receiving DSS or students with no credit score as long as the landlord/letting agent also accepts a guarantor.