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Learn more about Deposit-Free renting here.
What does Deposit-Free renting mean?When you rent through the deposit replacement scheme, the traditional cash deposit is replaced by insurance. Deposit-free renting provides extra protection for landlords and gives tenants access to money that would usually be locked away until the end of their tenancy. Because there’s no need to transfer and track a deposit, it saves admin time and cuts much of the hassle and financial pressure people experience with renting. As with any normal tenancy agreement, tenants must pay for any unpaid rent or damage to the property when they move on.
How does Deposit-Free renting work?With the Deposit-Free scheme, landlords no longer need to collect a cash deposit. Instead, they are protected by insurance cover for up to 12 months' rent for contents, fixtures, and fittings; and up to 6 months for loss of rent. In the event of a dispute, our expert resolution team will be called in to make a judgment based on evidence submitted by both parties.
What is the Deposit-Free scheme?Deposit-Free is being launched in Hong Kong, with the aim of making renting more affordable, faster, and fairer. Deposit-Free replaces the traditional cash deposit with insurance, paid for by the tenant. The landlord is covered against loss due to the tenancy and other covered risks. End-of-tenancy disputes are handled by our expert dispute resolution services.
What are the benefits of the Deposit-Free scheme?For tenants, Deposit-Free renting frees up money that would otherwise be tied up with the landlord, leaving them free to spend the cash as they want. For landlords, Deposit-Free helps attract tenants, and gives greater protection. Tenants no longer need to fund large deposits, so they can move in more quickly, reducing void periods for landlords. Letting agents can better protect their landlords through Deposit-Free, and can also register more applicants, attracted by the benefits of no deposit rental properties.
How much does the Deposit-Free scheme cost?The tenant pays a monthly fee, available [here], depending on the size of the property, which covers the protection costs. The landlord pays nothing toward the cost of the deposit-free scheme.
Any Other Questions?
If you have any other questions, please get in touch on our contact page and we'll do our best to help!
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