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 charge, equal to just one week’s rent. The tenant is still liable for any damages but if they do default the landlord will still have all the security of holding 8 weeks in the bank via our insurance backing. Our insurance partner is Canopius, one of the top 10 insurers in the Lloyd’s market.
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 eight 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 two working days.
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?
If there are any damages or rent arrears, we always try to recover the funds from the tenant first using the bank details they used when they paid their Reposit fee. If this process fails our insurance partner, Canopius, will endeavour to pay out within 28 days.
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. If a tenant defaults on any fair end of tenancy charges then Reposit reserves the right to take further action which may affect their future credit rating.
Will Reposit still provide cover if a Section 21 has been served?
Yes, Reposit will still provide cover for up to 8 weeks worth of rent.
Which tenants are eligible for Reposit?
Tenants who pass referencing checks or who have a referenced guarantor are eligible for Reposit. We carry out a full ID check on all tenants that sign up to use Reposit.
Reposit is available for tenants receiving DSS or students with no credit score as long as the landlord/letting agent references a satisfactory guarantor on behalf of the tenant.
Who are Canopius?
Canopius are our insurance partner and are one of the top 10 insurers in the Lloyd’s market. If at the end of a tenancy a tenant defaults on a fair payment then Canopius will pay out to the landlord.
How does insurance work with Reposit?
We are partnered with the insurance company Canopius, a top 10 insurer in the Lloyd’s market. Once a tenant pays the service charge, equivalent to one weeks rent, the landlord for that property is added to an insurance policy. This policy means that in the event a tenant defaults on a fair payment at the end of a tenancy, Canopius will pay out to the landlord. The maximum claim amount is up to 8 weeks worth of damage and rent arrears.