Tag: zero deposit

Your rental property is a huge asset and making sure that it is properly protected is a big consideration for a savvy landlord.

Finding the right tenants, carrying out thorough checks, and feeling confident that you are handing over the keys to someone who will love the property as much as you do is vital when it comes to living a calm landlord life.

However, the rental cycle has looked the same for years. Landlord advertises a perfect property, tenant falls in love, passes all the checks, pays a hefty security deposit and moves in. We thought it was high time to shake up this outdated system, and have launched an innovative initiative designed to change the way letting looks, and smooth the way for more affordable, and accessible renting for everyone. We are proud to introduce Howsy Club.

How does Howsy Club Work?

It’s really simple. Despite the deposit cap of five weeks being introduced in June as part of the Tenant Fees Act 2019, the average rental deposit in the UK is still over £1,000. For tenants in the capital, this figure creeps closer to £2,000.

With Howsy Club, this upfront payment is replaced by a small monthly fee, paid in with the rent. This is great news for your tenant, who is free of the burden of finding a hefty sum, and only has to make one simple payment every month. All your tenant has to do is pass our standard reference checks, and we’re up and running.

As the landlord, all you have to do is sit back and relax, safe in the knowledge that the team at Howsy have got things covered. There’s no hidden admin hassle to worry about, and as we are the policy holders, we deal with any claims on your behalf. The scheme is insurance-backed and therefore fully protected under the Financial Conduct Authority, the Financial Compensation Scheme and the Financial Ombudsman Service, meaning it is completely regulated for your peace of mind.

Should you have to make a claim, Howsy Club works slightly differently to a traditional deposit scheme does. When your tenants come to move out, we will undertake a check out using your original inventory, checking that everything in your property is left exactly as you expect it. If so, great news – your tenant can move on, and we can help you re-let your property. However, if there are any issues that need to be addressed, we will detail the issues and request payment directly from your tenant.

If the tenant wants to dispute the issues raised, they can notify the team here at Howsy within seven days, and the case will be passed to an independent adjudicator. At this stage, the process is very similar to a ‘traditional’ deposit adjudication. Everything is overseen by the third party, who will request evidence from us, and your tenant. We will supply the original inventory and images and check out data and images, and the adjudicator will make an impartial decision based on the evidence provided.

Should your tenant fail to pay, we can make a claim under the Howsy policy on your behalf. Upon receipt of funds – from our policy or your tenant – we will arrange to have any remedial work carried out at your property to make sure it is ship-shape and ready to rent again, or in the case of rent arrears, pass them straight back to you.

Why should I change what I always do?

So much has changed within the private rented sector over the past few years, our head is spinning! It’s much harder to be a landlord now than it was two, five, ten years ago, and here at Howsy we believe that simplicity is the best way forward – for everyone.

With Howsy Club, not only is the process simple and stress-free, but it also brings a raft of additional benefits that the ‘traditional’ method doesn’t, for both landlord and tenant.

For you, the landlord, the primary benefit is of course knowing that your property is protected by a safe scheme is the most important. However, Howsy Club delivers so much more:

• The nature of the scheme means that you are able claim up to six weeks’ worth of costs, instead of the industry standard of five. As the scheme isn’t a deposit, but an insurance, it is not restricted by the Tenant Fees Act 2019 in the same manner.
• Cleaning costs, dilapidation costs, removal of tenant’s furniture and rent defaults are included within the policy, as you would expect from any ‘standard’ deposit scheme.
• This is a huge draw for prospective tenants. When advertising your property, you are offering the equivalent of up to £2000 cash back! Who wouldn’t want to take you up on that offer?
• Best of all, there is no additional cost to you! In a competitive and ever more complex market, you can take some stress off of your shoulders at no extra cost and become part of the Howsy Club.

How do I convince my tenants?

Howsy Club hasn’t left tenants out of the list of benefits. As well as saving money, we’ve got a tasty little benefit that might help your tenants spend a little of that spare cash they’ve got left over…

Every Howsy Club membership comes with a complimentary tastecard+ membership, an exclusive members-only benefit that provides access to a huge range of offers across the UK.

50% discounts on dining at 6,000 UK restaurants, offers at theatres, comedy, cinema and live music events, and 2-for-1 at to UK attractions, there’s something for everyone with this great little flexible friend.

We are so passionate about Howsy Club, we are now offering it as standard to all our landlords as part of every Howsy Standard and Protect package. For more information on Howsy Club speak to one of the team today on 0330 999 1234.