Flatfair and Andrews update

83.82% of Tenants choose a Deposit Alternative over a Traditional Cash option

Andrews Property Group launched its new Deposit Alternative partnership with Flatfair on 22nd January 2024.

Flatfair reports that, in the last twelve months, the take-up of ‘No Deposit’ Plans has increased by 9%, accounting for 51% of total plans selected – it is now the preferred choice for renters. This preference is clearly reflected in Andrews’ own data, with 83.82% of tenants choosing the Deposit Alternative over the traditional Cash option. With tenant interest at these levels, it is important that landlords understand the product from the same perspective, as well as the numerous benefits on offer to themselves.

Owing to the fact that it is less expensive, a common misunderstanding is that the Deposit Alternative will attract less financially stable tenants, with some landlords also believing that the tenants only prefer this option because they simply can’t afford to pay the full amount. Conversely, affordability is a key consideration in Flatfair allowing the tenant the Deposit Alternative option – there are strict criteria that must be met, including passing a comprehensive reference check, and income verification. Flatfair data demonstrates that properties advertised with the ‘No Deposit Alternative Option Available’ wording generate, on average, a 28% higher applicant response, and on average, a related 24% reduction in the need to reduce the asking price, meaning that added landlord benefits include having a wider pool of applicants from which to choose, all the while being more likely to achieve the advertised rent.

Other landlords are concerned that the absence of a cash deposit may lead to the tenant relaxing their attitude towards looking after the property and/or paying the rent. Landlords can be reassured that the level of protection with Flatfair runs up to 10 weeks’ rent versus the 5 weeks afforded by the traditional cash deposit, meaning double the protection for the landlord, and double the potential liability on the tenant if they fail to meet their obligations. In practice, tenants are just as liable for damages and/or unpaid rent as they would be with a cash deposit, and they are incentivised by, and rewarded with, discounts on future plans for leaving properties in good condition and with rental payments up to date.

Many landlords prefer to operate in the knowledge that with a cash deposit in place, there is actual money available to address any end-of-tenancy issues. However, it is important to remember that even with that being the case, there are strict rules in place that do not allow for that money to simply be given to the landlord at the end of the tenancy. The Deposit Alternative enables charge recoveries to be processed more quickly, and each case is judged on its individual merits, following clear and transparent terms and conditions. The end-of-tenancy process itself is quick and easy to administer through a user-friendly online portal, and any tenant charges are usually recovered and paid to the landlord the day after those charges have been agreed. Because Flatfair covers the payments themselves, the delays that can occur through tenants failing to respond promptly (or at all) are eliminated altogether. 

The uncertain economic times in which we live mean that it’s more important than ever that landlords receive optimum protection, but that we also provide related choices in respect of financial options to renters. For a tenant, utilising Flatfair provides the option to move without having to find the money for an upfront deposit equivalent to five weeks’ rent while they still have a similar amount ‘locked away’ from their previous home. We believe that these mutual benefits align perfectly with our strategic aim to become the most trusted and admired agent in the property sector, providing our landlords with more protection, and enabling our tenants to access housing more quickly and economically.

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