Beware of Insured NIL Deposit Schemes

Why Plymouth Homes Lettings do not offer Nil Deposit schemes.

Tenant Information
Here at Plymouth Homes Lettings we believe in providing the best possible service not only to our clients the landlord but to you as the property occupier.

We have looked into the various Nil Deposit schemes and cannot see (apart from the up-front payment) how these will benefit you.

The various schemes call for a regular payment to ensure the landlord and or agent have a recourse, should you not leave the property in the same condition as when you took it.

This means you are paying money to an insurance company, where the Agent or Landlord may receive commission (this is actually against the new rules, as agents are no longer allowed to accept payment from a third party for services that they provide you, so if you do use this scheme, make sure you ask the question in writing). The product that is being offered to you is designed to make money from your tenancy, not to look after you professionally and or with your best interest at heart.

You are paying insurance premiums to an insurance scheme that you will NEVER get back. In addition, you may be harassed for any money owed, for things like cleaning, damage, gardening and decoration etc. We understand that if the insurance company are required to make a payment on your behalf they will be relentless in pursuing you for the payment. 

You could potentially end up being in a higher debt, because you have not budgeted correctly for leaving your tenancy. Insurance companies will continue to chase until such time as they have been paid back any money that is due to them. The likelihood of you having poor credit in your name increases.

This is why you will not be given an opportunity to take a property with an insurance based product with Plymouth Homes Lettings. We want to make sure that your experience with Plymouth Homes is a positive one.

We do hope you have found this information useful, when obtaining a new home, it is much better to have a deposit protected correctly.

If you have any questions, please do not hesitate to get in touch.