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Major PRS operator to scrap security deposits
Private rented sector landlord Get Living London is to scrap security deposits at its schemes, and will refund £3m of down payments to thousands of existing tenants.
In a pioneering move, the company has opted to abandon its security deposit of six weeks’ rent and will instead insist only on up-to-date references or guarantors.
The idea, according to chief executive Neil Young, is to make tenancy at its schemes more hassle free, as the cost of living rises.
From 14 June, new residents who successfully pass referencing or have a guarantor will have no security deposit to pay.
To reward residents “who have taken good care of their home”, if rental payments are up to date, Get Living London will waive any damage and cleaning costs if it totals less than one week’s rent.
Existing Get Living London residents will have their deposits returned from early July 2017. Deposits will be returned first to those residents who have lived in the same East Village home for the longest and it is expected that the returns process will be complete by the end of the year.
Deposits of 3,000 existing residents totalling around £3m will be returned.
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Launched in May 2013, Get Living London is a joint venture between Dutch pension fund APG, Delancey, and Qatari Diar. It is behind the country’s largest single-site PRS scheme at the former London 2012 athletes’ village, now called East Village, and home to more than 3,000 renters in 1,439 homes, with a further 4,000 homes in the pipeline across the UK.
Mr Young said: “Get Living was the first to revolutionise the rental experience in the UK by removing agency fees and introducing longer-term tenancies as standard. We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents.
“Scrapping security deposits as a pre-requirement and returning deposits to current residents is yet another step we are taking to show we are firmly on the side of renters.
“Where we have led – with no fees and longer tenancies – others have followed. We hope deposit-free renting becomes the norm.”
