Is Reposit allowed to operate under the Tenant Fee Ban?
Yes, under the Tenant Fees Act 2019 deposit replacement products can be offered as third-party services and as a choice alongside traditional deposits. As such, they can only be used if the tenant chooses to do so. Landlord/agents cannot require tenants to use a deposit replacement product unless they fully agree and have been given a choice.
Reposit requires agents to discuss with tenants the best option for them so that they can make the most informed decision.
How is Reposit allowed to charge tenants under the Tenant Fees Act?
As third-party services, deposit replacement products are only a permitted fee when it is a free choice of the tenant. Tenants can therefore use them if they choose to but Landlords/Agents cannot require them to do this.
Tenants are then entirely responsible for incurring associated costs. Our Team ensures tenants are made aware of and asked to acknowledge all costs they may incur with Reposit including the non-refundable one week fee, the annual extension charge and the ADR charge (if applicable).
Which permitted charges does Reposit cover in the event of a tenant default?
Reposit covers the following permitted charges:
- Damages/Negligence (including lost security devices)
- Cleaning costs
- Removal of unwanted items
- Rent arrears
For more information on permitted fees please refer to the official Tenant Fees Act 2019 Guidance document.
How does Reposit ensure tenants are given a choice?
Reposit implements a series of steps ensuring we are compliant with new legislation. A key part of our agent on-boarding is making sure agents understand that Reposit must be offered as a choice to tenants - agents should always discuss with tenants the best option for them.
In addition via our platform, agents will be prompted to confirm they offered the choice and tenants will need to agree via our terms of business that they were offered a choice before using the service.
How can you give landlords 8 weeks’ worth of cover when security deposits are capped at 5 weeks?
This legislation does not apply to Reposit as we are not a deposit scheme. We can therefore offer the 8 weeks’ landlord cover in case the tenant defaults and is unable to pay.
Do agents need to disclose referral fees received from Reposit?
Yes - under the Consumer Protection from Unfair Trading Regulations 2008, agents are legally required to be transparent about this with tenants and make it clear to them what commission they are receiving in all their advertisements (agent’s premises and website).
Please read the ARLA Tenant Fees Toolkit for more information.
Is Reposit allowed to charge the annual extension charge?
Under new legislation deposit replacements products are third party services and as such tenants can use/employ them only if they choose to do so.
Before purchasing a Reposit, tenants are made aware of and asked to acknowledge all associated costs they incur with Reposit including the non - refundable one week fee, the annual extension charge and the ADR charge (if applicable).