Deposit Replacement Insurance (DRI)
impressive products for your landlords
Available to Southcourt Business Package Letting Agents
A problem that tenant applicants sometimes face is finding the deposit/bond for a property, either because they are waiting for their previous deposit to be returned, or because they have to save up for one.
In association with one of our legal partners, Southcourt Property are now able to offer an innovative product which provides an easy and affordable solution – DEPOSIT REPLACEMENT INSURANCE. The DRI is an alternative to paying a deposit. A far smaller amount, it is paid for by the ingoing tenant instead of paying a tenancy deposit.
It’s a win-win solution because the DRI reduces the tenant’s move-in costs, whilst still providing protection for the landlord. There are also benefits for the letting agent.
BENEFITS TO THE AGENT
Once agreed with the landlord, the DRI enables you to market the property as NO DEPOSIT REQUIRED. This means that the property will let more quickly, giving you a competitive edge over other local agents.
Not only is there no financial outlay for the agent (or landlord) in taking advantage of this scheme, but the agent is free to add a mark-up to the price of the DRI to the tenant, thus enjoying a profit in addition to his usual fees.
The agent and/or landlord will avoid the admin associated with using a Deposit Protection Scheme.
NOTE: For the time being we are allowing only one agent to operate the scheme in each town.
BENEFITS TO THE LANDLORD
The property should rent faster because the Deposit Replacement Insurance represents an attractive and convenient incentive to tenant applicants.
The DRI offers ample protection to the landlord as it provides the equivalent of up to 12 weeks rent as deposit cover.
The DRI covers the landlord if a tenant vacates the property without paying the last month’s rent, in addition to damage compensation.
There is no financial cost to the landlord.
Following the acceptance of a claim, the landlord will receive guaranteed payment within 7 days.
There is NO EXCESS in the event of a claim.
The one off fee provides DRI protection for the life of the tenancy, regardless of the tenancy duration and any renewals.
BENEFITS TO THE TENANT
There is no large tenancy deposit/bond to be paid.
The tenant can move in earlier as they do not need to borrow the deposit, or wait for their previous deposit to be returned.
The DRI is an uncomplicated product to understand and is simple and easy to purchase.