Depositless rent scheme for students launched

Steve Lumley·14 December 2021·5 min read
Depositless rent scheme for students launched

A rental guarantor service has revealed a new depositless renting offering for UK and overseas students.

The new scheme is being offered by Housing Hand who say that their depositless option will enable student tenants to move into a property without having to pay a deposit first.

Their new scheme is being rolled into their guarantor service which sees tenants using the firm instead of a personal guarantor for their rent.

Housing hand says that their service will bring reassurance to student letting agents and landlords who will not, the firm says, be out-of-pocket should their student tenant default on their rent.

'New approach to deposits'

The firm's group operations director, Terry Mason, said that the service was a 'new approach to deposits'.

He added: "We are providing clear reassurance to landlords by extending their guarantee cover to include deposits.

"We are also facilitating access to purpose-built student accommodation providers and the private rented sector for young people who may otherwise struggle to come up with the deposit required."

The new scheme means that a student tenant is able to move into a property without a deposit and this will be covered under the Housing Hand guarantee.

The firm says that claims are covered immediately - rather than having landlords wait until the tenancy ends.

100% payout rate on every valid claim

Housing hand says it upholds a 100% payout rate on every valid claim.

The new deposit renting scheme is one of several new services unveiled by the firm since the start of the pandemic.

Among these is their new house finder service and a partner portal to help accommodation providers boost their revenue.

The managing director of Accommodation for Students, Simon Thompson, said: "There will be student landlords and letting agents looking at the details of this depositless service because it may meet their needs.

"It will be particularly attractive to landlords with overseas student tenants because some of them will also be using a guarantor service to ensure their rent is paid."

Student tenants moving without needing to pay a deposit

The new service is also available for working professionals and will see student tenants moving into a property without needing to pay a deposit if they have applied already for the Housing Hand guarantor service.

As a result, tenants will pay a £25 application fee, plus 20% of one month's rent that will be paid every month in small amounts for the duration of the tenancy.

Housing Hand says that other deposit alternative products, including insurance bonds, are limited in their coverage and scope and only pay out when the tenancy ends.

University begins hunt for student landlords

Meanwhile, just weeks after most universities in the UK struggled to find student accommodation for the 2021/22 intake, one university says it is already on the hunt for student landlords.

Dundee University says it is looking for new landlords to help provide homes for more than 100 students that are expected in the New Year.

The university's director of student services, Graham Nicholson, told a local newspaper that the pandemic had seen many landlords either going out of business or accepting non-students to rent their accommodation.

He highlighted that some landlords had also sold their student rental properties.

Student landlords keen to return to the student letting market

However, he says that there is still a large core of student landlords who are keen to return to the city's student letting market - and he wants them to get in touch.

He pointed out that this lack of student landlords is a UK-wide issue since the pandemic saw many students retreat to their homes and cancel their student accommodation tenancy agreements.

Dundee University admits it has struggled to find suitable accommodation for most of its students who arrived in September, and now they are looking for more homes for students who are starting courses in January.

He says the university is already talking to student letting agents, as well as private hall providers, but they also want to speak with private student landlords as well.