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    Nil Deposit Schemes: Everything You Need to Know

    Did you know that there’s currently £5.2 billion locked up in deposit schemes?

    At Move On, we work with flatfair to offer a Nil Deposit Option that works for both tenants and landlords. flatfair have helped save tenants over £10 million in upfront costs so far, helping alleviate the stress of moving between rental properties and the costs it can include.

    Nil Deposit Option – Information for Tenants

    Deposits for rental properties can be expensive. And with the rising cost of living, some of us simply don’t have the funds to pay an extra five weeks’ worth of rent upfront. Tenants are spending an average of £3,350 on moving costs, and most are having to pay for a new deposit before they get their old one back.

    How does it work?

    When you sign up for a Nil Deposit Option with flatfair and your offer to rent with us has been accepted, you’ll be sent a link from to go through and sign up to the flatfair platform with the plan that we have created for your tenancy. This will include paying a check-in fee of one week’s rent + VAT (or £120, whichever is greater). This check in fee is non-refundable.

    They may ask for various documentation such as your signed tenancy agreement and referencing information.

    At the end of your tenancy with us, we will still carry out a check out report to compare against the inventory and make note of any charges our landlords need to make.

    For more information, visit flatfair or enquire with us about a Nil Deposit option when you view.

     

    Nil Deposit Option – Information For Landlords

    Many landlords are cautious when it comes to alternatives to the traditional government-backed deposit schemes. However, flatfair creates new options and another route to protecting your property.

    What does Nil Deposit mean for your rental?

    With a flatfair nil deposit scheme, when tenants move in, they pay a check in fee directly to flatfair. Then, at the end of a tenancy, if there are any charges or unpaid rent, all relevant documents (such as check out reports) need to be uploaded to flatfair and tenants are asked to pay the amount agreed.

    If there is any dispute, this will be discussed through government-backed, independent adjudicators.

    Once charges are established and agreed with No Deposit, flatfair can offer up to 10 weeks’ worth of protection and put landlords back in pocket within just 10 days.

    And, if you’re managed by us at Move On, we’ll take the stress of arranging check out reports and figures for deductions off your shoulders. We’ll deal with all correspondence between flatfair and the tenants, so you don’t have to.

    Interested in finding out more about flatfair and their Nil Deposit options? Click here to read more information, or chat with us today!

    Tel: 01202 711169

    Email: enquiries@moveon.biz

     

    Right to Rent Checks Advice for Landlords Blog Articles

    Right to Rent Changes 2022: What You Need to…

    Changes to how tenants can prove their Right to Rent in the UK are just one example of the many legislative changes for the lettings sector in the last few years. These frequent right to rent changes can make it difficult for landlords to know how to keep up and keep their rental properties and tenancies compliant.

    Right to Rent Checks Advice for Landlords

    Right to rent legislation for landlords and agents from the UK government has changed multiple times over the last couple of years, particularly throughout the Covid-19 pandemic. But what are the newest changes and how can you make sure you’re doing the right thing? That’s where we come in. Check out our list of frequently asked questions from landlords on Right to Rent checks below…

    Got more questions? Our Landlord Compliance Guide has everything you need to know about the latest legislation changes for rental properties in England.

    Compliance Guide for Landlords 2022

    Download the full guide for FREE here.

    What are right to rent checks?

    Right to Rent checks refer to mandatory checks that landlords in England need to carry out on all prospective tenants. This includes those subletting or those taking in lodgers, and the checks are to ensure that all tenants have the right to rent in England before entering into an agreement. The idea of these checks was introduced after the Immigration Act 2014.

    Checks include verifying the identity of your tenants through physical or online government documents and checking their right to reside in the UK through these.

    Generally, to have a right to rent in England means tenants:

    • Are a British Citizen
    • Are an EEA or Swiss National
    • Otherwise have a ‘Right to Rent’ in the UK

    Who needs to be checked?

    All prospective tenants and permitted occupiers over the age of 18 should be checked before a let is agreed.

    These checks must also be followed up on any renewal of tenancies in the case that a tenant’s residence permit or visa expires during the tenancy. They must also be carried out on any children included in a tenancy upon renewal if that child has turned 18 throughout the tenancy.

    What documents can you use?

    The government guidance on which physical documents can be checked changed at the beginning of April 2022.

    Currently, for UK and Irish citizens, right to rent can be proven with either a UK or Irish passport or a combination of two other examples of photo I.D (such as a UK driving licence and birth certificate).

    For EU and international citizens who hold residency in the UK (for either a time-limited period or unlimited period), checks now need to be completed using the UK Gov’s online checking service. This uses the tenant’s date of birth and a share code that they must provide to you.

     

    The official UK government guidance (plus accessible versions) can be found by clicking here.

    What are the Right to Rent changes?

    Until 6th April 2022, Biometric Residence Permits for international citizens were still valid to be used as I.D documents for right to rent checks, however this has now changed.

    Anyone who is not a UK or Irish citizen must now use the government online checking service and provide a share code and their date of birth to their landlord or agent for the check to be completed.

    Later this year the UK government are hoping to also replace physical document checks for UK and Irish citizens so everything will be digitized. There are introducing new technology called IDSPs that citizens will be able to set up and verify their identity remotely. However, these are still in development, and we can’t be sure when they will be released for general use yet.

    Conclusion

    Landlords are facing fines of £3,000 per tenant for not completing these checks (or having a managing agent complete them), so it’s incredibly important to ensure these checks are carried out properly.

    Feeling overwhelmed? You’re not alone!

    Our property management packages could be the solution you’re looking for. We take care of everything, including checking your new tenant’s right to rent. Or, if you’re still not sure, you can download our free guide for landlords on the most important pieces of compliance you need to keep in mind in 2022.

    Download your free guide here!

    For more information on tenant’s Right to Rent, visit the GOV.UK website: https://www.gov.uk/check-tenant-right-to-rent-documents

    Blog Articles

    40% of Tenancies Not Correct

    When it comes to claiming on tenant deposits, Tenant Voice recently claimed 40% of tenancies are incorrect, which often will lead to not only the tenants being awarded in their favour but also resulting in landlords being out of pocket.

    I have worked within the industry for over 30 years and owned Move On for 15 years. When you have been around for this long, there are rules we learn in books and training days, etc. and there are many things you learn through experience. I have got to where we have today due to the rigorous systems put in place. Those systems have been adapted over the years from experience.

    It always fascinates me that no matter how diligent our systems and checklists are, when we recruit a new person, something else will slip through. It does not concern me too much because we just simply add it to our checklist. All our tenancies are triple-audited by three separate pairs of eyes, prior to paperwork going out to be signed. I have often had staff ask me: “Do we have to do so many checks?” and my answer is…

     Yes, always.

    We are not perfect as humans, we are an extremely busy office and it is very easy to be distracted by a phone call or someone walking into the office, so triple-checking has to be done. To get a date wrong, a term wrong or have paperwork missing can result in the landlord not being able to claim through a rent guarantee warranty or in an eviction process as well as thousands of pounds of fines to the landlord and us as an agency.

    Deposits not protected or incorrectly prescribed information will find the landlord out of pocket of up to 3 times the deposit plus the deposit back.

    Renting out properties without the correct license will have the landlord not only fined/banned but also a rent repayment order of up to 12 months of rent.

    There are many agents out there, please don’t go for the cheapest, go for the one that gives you confidence that they absolutely know the law! In the end, the cheapest never ends up being the cheapest when it goes wrong!

    Keep safe,

    Sharon

     

    Remember a good letting agent is worth every penny when you know you can sleep peacefully at night.