Issue 5
Partner products: deposit replacement, guarantor and rent guarantee cover
As part of our commitment to protecting your investment and adapting to the changing rental landscape, we have partnered with three specialist providers. These partnerships let us strengthen your protection against rent arrears, broaden your tenant pool safely, replace outdated practices such as large rent-in-advance requests, and stay compliant in light of the Renters' Rights Act.
From Monday 9th March these options will be introduced across our portfolio. Unless we hear otherwise, your properties will automatically be opted into Deposit+ and Guarantor+, subject to eligibility criteria. Please speak to us regarding rent guarantee insurance should that be something you wish to implement.
Zero Deposit & Deposit+
We are now working with Zero Deposit, a specialist provider of deposit replacement and insurance-backed protection products. This lets tenants choose from three deposit options, while landlords still receive the equivalent of six weeks' protection.
Option 1
The tenant pays a standard five-week deposit in cash, secured as normal with the Tenancy Deposit Scheme (TDS), then topped up with Deposit+, an additional insurance policy providing a sixth week of protection. Total protection for the landlord: 6 weeks.
Option 2
Instead of a five-week deposit, the tenant chooses an insurance-backed deposit alternative, paying the equivalent of one week's rent plus a non-refundable admin fee. The landlord still receives six weeks' protection, while the tenant's upfront cost drops from five weeks to around one.
Option 3
As above, but the tenant can spread the cost over 12 months. The landlord is still fully protected from day one.
How claims work
Zero Deposit is designed for faster access to funds than a traditional deposit scheme: overdue rent claims are paid out immediately once approved, independent adjudication is available for damage claims, and claim limits are higher with faster resolution than typical deposit disputes.
If landlord, tenant and Zero Deposit can't reach agreement, the case can be referred to the TDS for independent adjudication.
Guarantor+
Sometimes a tenant may not fully pass referencing but is still suitable to rent, commonly students, those recently starting a new job or moving to the UK, the self-employed, or those on housing benefit. Traditionally these tenants would need a UK-based personal guarantor or would pay large amounts of rent in advance.
Through our partnership with Zero Deposit, we can now offer Guarantor+, an insurance-backed guarantor product that replaces the need for a personal guarantor. The tenant purchases the policy, which provides:
- Cover for unpaid rent up to the tenant's share of the rent
- Up to £130,000 in rent cover
- Up to £10,000 in legal expenses
- Eviction support where required
- Direct payouts, with rent recovery pursued on your behalf
Guarantor+ is typically offered where referencing indicates a guarantor would normally be required. It won't be offered where a tenant has significantly poor credit history, multiple unresolved CCJs, an active IVA, a previous eviction for rent arrears, or fails identity/referencing checks, in those cases the tenancy wouldn't proceed. The policy is paid for by the tenant, typically around three weeks' rent.
Rent Guarantee Insurance by AdvancedRent
Rent Guarantee Insurance is a legal expenses and rent protection policy designed to protect you if a tenant cannot or will not pay their rent. We're offering two policy structures: single AST cover, and HMO cover (separate ASTs, up to 4 or 6 tenants).
What's covered:
- Legal costs & expenses, up to £50,000 per insured incident
- Rent arrears, up to £8,000 per calendar month
- Post-possession cover, 50% of the rent for up to 3 months after vacant possession
- Alternative accommodation, up to £5,250
- Storage costs, up to £450
How the claims process works:
- Arrears must be reported within 14 days
- Once accepted, the insurer will pursue the tenant
- When two full months of arrears have accrued, payment is made to you
- Eviction proceedings begin via the insurer
For larger HMOs or multi-unit properties, we can insure tenants on an individual basis, or purchase two or more policies to ensure full coverage across the property, tailored to room numbers, rent bands, and tenancy structures.
Pricing (exclusive of Insurance Premium Tax):
- Standard AST: £144.00 (£0 to £500 rent band), £175.20 (£501 to £1,000), £195.20 (£1,001 to £1,500), £215.20 (£1,501 to £2,000)
- HMO (separate ASTs): up to 4 rooms from £370, up to 6 rooms from £470
Full pricing matrix available on request.
Eligibility, across all three products
All tenants must receive a full pass reference from an approved referencing provider, and cover must be taken out within 14 days of tenancy start (otherwise a 90-day no-claim period applies). Where a tenant receives a conditional pass, they may instead be offered Guarantor+ to help them pass referencing.