As well as causing financial pressure on tenants, tenancy deposits are an admin nightmare for letting agents and landlords, with registration fees and late penalties charges costing thousands a year. With over £4billion tied up in schemes in the UK rather than benefitting the economy, it's about time there was a better way to secure property and make renting fairer.

This money could be used to cover tenant moving costs or at least allow tenants to make interest off it themselves. Luckily, these are no longer the only options available. Here's a quick overview of the current system and a look at how Reposit is making renting fairer 👇

Tenancy deposit schemes: the big three

Under the 2004 Housing Act, landlords/letting agents must protect deposits taken under one of three government approved deposit schemes: the Tenancy Deposit Scheme, Deposit Protection Service or MyDeposits. Most importantly, the deposit must be registered within 30 days or hefty fines apply. These schemes offer either a custodial option and/or an insured option.

Insured schemes

The insured schemes allow the landlord/letting agent to keep the tenant's deposit in their own bank account throughout the tenancy. These schemes are popular, as the deposit can provide both interest over the course of the tenancy and cash relief for letting agents or landlords themselves whenever needed, making this type of scheme very risky...

Insured schemes come with a joining fee and then extra costs for registering each individual deposit. With the onset of the tenant fees ban, these charges can no longer be passed onto tenants, so we expect to see insured deposit schemes becoming less popular.

Custodial schemes

With a custodial scheme the deposit is held by the scheme providers themselves, rather than the letting agent. At the end of the tenancy, the scheme releases the deposit as long as the landlord and tenant are in agreement.

Custodial schemes are free, as the schemes themselves cover their costs from interest made off the tenants' deposits they hold.

What's the problem with using these schemes?

Aside from the fees, deposits are an old-fashioned way of letting property which come with a mountain of paperwork hassle and which haven't kept up with the digital age.

With all of these deposit scheme providers on both insured/custodial, the tenant's money is tied up for the length of their tenancy allowing another business to make money off the interest.

And the reality is that tenants can generally be trusted to be responsible and treat a property like their own home - 97% of traditional deposits are paid back without a dispute.

Reposit: how and why is it different?

We remove the need for a security deposit by providing an alternative to the traditional system.

So how does it work?

The tenant pays one week's fee instead of up to five weeks' rent - saving on upfront costs. The landlord, in return, receives 8 weeks' worth of end-of-tenancy protection.

With us, there's no need to worry about registering a deposit (and potential fines if you don't do it in time) or any confusion about who should keep the money between the scheme and the agent.

But remember, Reposit isn't tenants' liability insurance; our tenants remain liable for any unreasonable damage or unpaid rent at the end of tenancy.

Let tenants move in faster  

By offering tenants the chance to pay less, you’ll attract more tenants who may want to reduce the high upfront costs of moving.

More coverage than a cash deposit

The Tenant Fees Act 2019 introduced a five weeks’ cap on security deposits. With Reposit, landlords receive 8 weeks’ worth of guaranteed cover, which offers the same type of property protection as a deposit.

Faster end of tenancy

Reposit also tackles that dreadful end-of-tenancy stress. As a tech-enabled solution, we make it easy for landlords and agents to upload claims evidence and communicate with tenants.

And most importantly, our process is much shorter, with a payout time of up to 3 times faster than with traditional schemes.


Find out more about Reposit here 🏡