Renters in Swansea and Llanelli could soon find it easier and cheaper to take on a property tenancy thanks to a new partnership between a local estate agent and a payment technology firm. Dawsons, the largest independent estate agency in Swansea, has joined forces with Flatfair in a new scheme to bring 'deposit-free' renting to the area.
Instead of paying a typical deposit, which is often more than one month's rent, and can be tough for many people to find, renters on the scheme can instead pay a small one-off fee, equivalent to one-week's rent plus VAT, to guarantee their home. At the end of their tenancy, any payment for damages is mutually agreed and arranged by a third party, if necessary.
The scheme comes ahead of the Renting Homes (Wales) Act 2016 which will come into effect later this year and aims to simplify tenancy contracts. The new act will introduce new laws around notice periods for rented accommodation in Wales.
Read more: 'Ridiculous and stupid': The speed bumps that have divided a village
Whilst previously the minimum notice period to vacate a property was two months, when the new law comes into place landlords will be legally required to give tenants six months' notice if they are required to vacate a property, and landlords will no longer be able to give a notice until renters have been in the property for a minimum of six months. It's hoped the new deposit-free scheme will further assist renters.
Director of lettings at Dawsons, Ricky Purdy, explained: "We had been considering the option of a traditional deposit alternative for some time, taking our time to ensure any partnership and therefore our offering, aligned with our brand and service levels, along with the expectations of our landlords and tenants alike.
"Safe to say, we have found that in Flatfair, and are delighted to begin the journey offering our landlords such added value, reassurance and peace of mind, and of course our tenants the convenience and advantages during the new tenant journey and long after, that Flatfair allows us to provide."
Co-CEO of Flatfair, Gary Wright added: "It's important for us to only partner with agents whom we fully trust, and Dawsons’ multiple awards and national recognition speak volumes about the care the company takes with its customers.
"Finding a tenancy deposit is becoming more difficult for people everywhere across the UK, and we hope bringing deposit-free renting to South Wales is a first step on the path to extending our services throughout Wales."
How does deposit-free renting work?
Flatfair explains on its website: "Tenants can wave goodbye to costly deposits. Secure your new home with a small, one-off check-in fee and move in the very same day. When it's time to go you'll only pay for damages or unpaid rent you are responsible for."
In short, instead of paying a typical deposit - which is usually at least one month's rent - tenants renting their home through the scheme can instead pay a small fee of the amount of one week's rent plus VAT. At the end of their tenancy, they only pay for damages or unpaid rent ie. they don't have to pay the rest of a typical deposit.
READ NEXT:
- Welsh Stop Brexit Man sees his speaker confiscated following new protest laws
- What people think about the Welsh Government's basic income trial
- Severn Tunnel set to be closed for more than a week for essential rail works
- What people think about the Welsh Government's basic income trial
- Welsh Government attacks UK Treasury over plan to tax basic income
Find out about great places to live near you:
