The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Is it Time For Landlords to Look at Alternatives to The Standard Deposit?

Not requiring a six-week rental deposit could reduce void periods. Peter Hemple reports

If the career of a private landlord were compared to a boxing match then most of you will probably feel like you are currently in the seventh or eighth round of a grueling fight. And as you well know, the last couple of rounds have been brutal. The main problem is that you are in the ring boxing two opponents at the same time.

On your left is the government and it has been smothering you with punches - increased regulation (jab), higher stamp duty land tax (body blow), withdrawing tax relief on mortgage interest payments (upper cut) etc.

Landlords continually have to bob and weave to stay in the fight - buy cheaper properties with lower stamp duty costs (bob), fix mortgage rates long-term at historically low rates (weave), deleverage your portfolio (bob), incorporate your property portfolio (weave) etc.

On your right is the ever-growing build to rent sector (whom you are convinced is taking steroids). He is steadily jabbing away – building in the best locations of your city (jab), providing plush, modern facilities to tenants (jab), offering them superfast broadband with bills included (jab), not requiring a deposit (right hook). Ouch! Many landlords didn’t see that last one coming. How can they compete with that? Surely, every tenant in the country would rather not have to scrimp and scrape together a large deposit when renting?

In this article we will look at how landlords can land a decent counter-punch of their own by offering tenants the chance of moving into their rental property without having to fork-out a six-week deposit. Protect your chin landlords…and keep swinging!

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