Plymouth HomeFinder FAQS
Over the past ten years we have worked with landlords who have accepted a deposit guarantee (Deposit Bond). From that accumulated experience, we have developed a series of questions most likely to be asked of Path by a landlord thinking about using this scheme. We hope this will be of use for any new or existing landlords.
1. Will you pay a cash deposit?
No. Path can provide a deposit guarantee (DG) on behalf of a tenant who meets our criteria and does not have the means to provide a deposit themselves. This guarantee is a signed agreement, which outlines the terms and conditions under which will agree to guarantee the deposit.
2. How much money will the DG cover?
The DG will cover up to one months rent. Please keep in mind we hope to encourage rents in line with what housing benefit will pay and therefore which are affordable.
3. Under what circumstances will the DG be paid out?
A DG can be claimed against when the tenant leaves and either:
- Has caused damage to the property or loss through missing items on an inventory
- Left owing rent arrears
Path will only consider paying claims up to the agreed value of the DG. In the case of damage we would need to be allowed access to complete a damage report prior to any payments being considered.
4. Will you guarantee the rent?
Unfortunately we cannot guarantee any rental payments. It will remain the responsibility of the tenant to pay their rent, either from their own income or with help from housing benefit.
5. How long does a DG last
The maximum length it will last is three years. We cannot guarantee every tenancy on an open ended basis. Research suggests that the average length of a private tenancy in the UK is 2.5 years. We hope that three years will be long enough in most situations.
6. How can the DG benefit me as a landlord?
If you are a landlord who houses/would consider housing tenants in receipt of housing benefit, you will understand that, for tenants on low income, getting together the kind of money to secure a tenancy can be a difficult task. You may be keen to take on a tenant but are wary about doing so without some back up if problems arise. Path will not only provide a guarantee to cover any losses you might face (up to the agreed value of the bond), but can also offer advice and assistance at the onset of any problems. We can contact housing benefit, visit the client, create payment schedules for arrears, offer any assistance we can to make the tenancy a success. We can make no guarantees but aim to be supportive and responsive.
7. What happens at end of three years?
If the tenant is still in residence and there has been no problems then we would hope that you could continue the tenancy with no DG in place. If however there are rent arrears we can consider a claim against the guarantee in order to sustain a tenancy at the three year stage.
8. Will Path manage the property?
Path cannot manage properties for you. You will still be responsible for collecting rent, carrying out repairs, providing a tenancy agreement and carrying out gas and electric safety checks and other responsibilities you must perform as a landlord.
9. Who is responsible for filling in the HB forms?
The tenant is ultimately responsible for paying their rent, whether from wages or housing benefit. Path can help complete HB forms with tenants, ensure that Landlord Direct forms are completed and submitted, and monitor HB with the client’s permission. If you have any queries or concerns then we can try and help resolve them.
10. How does this scheme fit in with national Tenancy Deposit legislation?
As no money has changed hands we are not affected by tenancy deposit legislation. You only have to protect a tenants deposit when they have actually paid one. By taking a guarantee instead means that you do not have to interact with the national tenancy deposit protection schemes on any tenancy where a deposit guarantee is in place. You would only need to protect a deposit if the tenant managed to raise money for a deposit at a later date and wanted to pay for it themselves rather than through our scheme.