Explore Non-Traditional Deposit Options, Company Guarantors & Bills Packages: A Win-Win for Landlords and Tenants

12th July 2024

As the rental market evolves, there has been a notable 25%+ increase in demand for alternative deposit solutions, according to Reposit, a leading industry supplier.

Reposit’s analysis from March 2023 to March 2024 highlights a 26.8% rise in sales among one- and two-person tenancies, where tenants are paying above the average rental cost of £1,029 per month. Currently, the average rental cost for all properties stands at £1,121 per month, making the £1,029 figure notable for smaller tenancies during this period.

Traditionally, a five-week cash deposit averages £1,293, while the Reposit alternative averages just £258.60, presenting a more affordable option for tenants.

Reposit’s Chief Executive, Ben Grech, notes: “This latest figure shows our FCA-regulated product is recognized as a valuable solution by tenants, landlords, and agents across a growing portion of the lettings market.”

As landlords, considering non-traditional deposit options like Reposit and exploring company guarantors can provide financial flexibility and security for both you and your tenants. Embracing these innovative solutions can attract more tenants and streamline the rental process.

Embrace Housing Hand: A Modern Guarantor Solution for Today’s Rental Market

Allowing tenants to use Housing Hand as a guarantor offers you the same protection as a traditional guarantor while opening the door for prospective tenants who might not have family in the UK or whose family members don’t meet the income threshold. In contrast to traditional guarantor options, 3^rd party company guarantors tend to be more contactable, and experienced than a tenants family member.

It’s important to note that the number of tenants with families living outside the UK has increased significantly in recent years among Brighton’s student population. These tenants typically have more financial resources to spend on accommodation.

By accepting Housing Hand, you can attract a broader pool of reliable tenants and ensure your property remains in demand.

At this time of year, with 90% of our stock let since November 1^st, and with international students arriving later in the season, and clearing students who might have had to initially save up a deposit for a less expensive rental area – we encourage you to consider these options.

Consider Offering an All-Inclusive Bills Option to Protect Your Property

With energy prices on the rise, some students may choose to keep heating off or very low throughout the winter to avoid high bills. This can lead to various issues, such as burst pipes, condensation, and mould, which can damage your property. Additionally, tenants might struggle to understand and manage their utility bills properly.

Offering a bills-included package can mitigate these risks. By bundling utilities to a fixed amount with a 3^rd party company, you ensure that the heating stays on at a safe level, reducing the chance of property damage. Moreover, this approach can prevent the unpleasant surprise of a large bill arriving after a direct debit payment, which can occur when payments aren’t monitored closely.

We have partnered with the 3^rd party company, Fused, who offer packages to our tenants through a referral code. All housemates will need to opt in to the packages and can sign up prior to, or in the early stages of their tenancy (if the tenants have not yet made any payments to providers). Tenants can choose their package and add services throughout their tenancy. Fused offer; Unlimited water, unlimited renewable energy, broadband, and TV packages.

Consider including bills in the rental agreement to protect your property and provide peace of mind for both you and your tenants.

At Coapt, we regularly work with Reposit, Fused and Housing Hand, and are here to answer any of your queries. We will give you a courtesy call before your houses go back on the market for November and can go through the fine print for each of these optional offers.