Thorgills offers a Nil Deposit scheme through Let Alliance, which provides landlords with a guarantee of up to six weeks’ rent if a claim is made against a tenant. A claim is handled in the usual way and Let Alliance make any necessary payment before seeking reimbursement from the tenant.
The advantage for tenants is that by paying a Nil Deposit service charge of one week’s rent plus vat to Let Alliance, they do not need to pay a deposit of six weeks rent. This reduces the amount of money a tenant needs in order to move into a property and can mean they can afford a slightly higher rent than they previously thought. Tenants pay a nominal monthly fee for liability insurance.
Landlords benefit from the Nil Deposit scheme because their property is within reach of more prospective tenants and therefore it will be the subject of more interest than if all applicants were expected to pay a full deposit of six weeks’ rent. More interest can mean shorter void periods, a greater choice of prospective tenant and potentially even a better rental price, all with no additional risk.