Your Deposit Options
One of the most expensive parts of moving into any rental property is the deposit, which is why here at O’Sullivan Property Consultants we and our landlords offer a number of options to you.
A traditional cash deposit costs the equivalent of 5/6 week’s rent. This money is held in a deposit scheme, so your money is protected. At the end of your rental period, the money is returned subject to any deductions you agree, or the deposit scheme provider agrees we are owed. We use [Deposit company], one of the government-backed schemes.
Deposit replacements are products that are designed to give you, as the tenant, more choice. Our landlords will accept a Zero Deposit Guarantee. You purchase the Zero Deposit Guarantee, which costs the same as one week’s rent, and this buys the landlord the same cover as a security deposit.
If there are any deductions Zero Deposit uses TDS, one of the government-backed schemes, decides what you are responsible for. Zero Deposit then pays the landlord and you pay Zero Deposit.
Here’s an overview of the two schemes:
|Security Deposit||Zero Deposit Guarantee|
|Cost - based on a monthly rent of £2,600||£2,600.00||£600.00 and |
£26 per tenancy each year the tenancy runs for.
|Protection||Government Backed Scheme||FCA Authorised |
Partnered with Munich Re
Covered by the FSCS
|Claims||Deposit Protection Service||TDS|
Please note: we can’t give you advice on this and it's up to you whether you choose a security deposit or a Zero Deposit Guarantee. We earn a commission from Zero Deposit for each guarantee that is purchased.
What it is?
- Tenants purchase a guarantee for the cost of one weeks rent that gives you the equivalent protection of a six-week cash deposit.
Why are we partnering?
- These types of products can help tenants by reducing the upfront cost of renting and can help speed up the rental process and reduce void periods.
- We still do our same referencing, so the quality of tenant will stay the same.
What protection do landlords get?
- The guarantee gives you effectively the same cover as a cash deposit and lines up with your AST.
- As with your cash deposit, the tenant(s) remain fully accountable for looking after your property and making rental payments.
- The guarantee is backed and underwritten by Great Lakes Insurance SE which means there are safeguards in place to help ensure you get a fair and transparent product with no hidden risks.
What if there are issues at the end of the tenancy?
- Zero Deposit are partners with TDS, the longest running Government-backed deposit scheme, who make the decision on any disputes.
- If you would get paid with a traditional deposit, the outcome will be the same with Zero Deposit.
- In the event of a fair claim found in your favor, Zero Deposit pay you within 2 working days and pursue the tenant to reimburse them.