Smart Deposit Solution is a warranty product which was developed in recognition of the growing legislation which landlords have to adhere to and the increasing cost of living which may mean tenants can’t afford the upfront cost of a deposit.
Bryn Cole, Managing Director of FCC Paragon personally came up with the concept and comments:
“I felt it was time that something changed and I wanted to create a real alternative to one of the insurance or custodial schemes currently on offer, especially with the deadline for re-registering fast approaching on 6th April.
"With our guarantee, once the tenant has successfully passed the full referencing process, they pay a one off fee which allows them to move into a property without having to find a large, sometimes unaffordable upfront sum.
"The landlord is then provided with a Smart Deposit Solution warranty contract which covers them for any damage to the property, up to a maximum of 2 months rental value, and the final month’s unpaid rental if the tenant should leave not having paid this, without them having to worry about holding a tenant’s deposit.
"Not only do both the landlord and tenant benefit, the managing agent avoids having to place a deposit in a costly national scheme and the property can be advertised to a wider range of prospective tenants.”
The model has been well received by agents with a large number already looking to make the switch from their current provider.
Bromley based letting agent, Winchester Lettings, are so impressed they are in the process of speaking to all of their landlords with the intention of transferring from their existing company, The Deposit Protection Services (DPS).
Managing Director, Kevin Winchester comments:
“Feedback from landlords so far has been extremely positive, in the main because it offers them greater protection. We would only ask for a deposit to the value of one month’s rental value but, with this scheme, they receive up to two months rental value for dilapidations.
"With our current scheme, if a dispute occurs, the Alternative Dispute Resolution (ADR) service is the default way in which to resolve the problem but this can be a long and drawn out process. If there is a dispute under the Smart Deposit Solution warranty, claims are processed within a 14 day period so the landlord doesn’t have to wait too long.”
Claims can be made for either dilapidations, non payment of the final month’s rent or a combination of both if the situation arises.
