Tenancy deposit protection and dispute resolution company The Dispute Service (TDS) has announced a long-term strategic partnership with Zero Deposit, a new company which aims to help tenants by replacing the traditional tenancy deposit with an affordable insurance policy.
TDS has entered into an exclusive contract to provide dispute resolution services to Zero Deposit, run by former ZPG chief commercial officer Jon Notley, when it plans to commence trading later in 2017.
As part of its strategic partnership with Zero Deposit, TDS has made an investment in the new business and takes a seat on the board.
Deposit replacement insurance products involve tenants buying an insurance policy in lieu of a deposit which guarantees to landlords any approved losses incurred as a result of action by the tenant up to a specified value. Tenants remain fully responsible for any damage or outstanding rent payments at the end of the tenancy, but the landlord is protected in case these debts are not honoured by the tenant, with Zero Deposit paying the landlord within 48 hours of the disputed claim being accepted or confirmed by TDS.
Steve Harriott, group chief executive of The Dispute Service, said: “While deposit protection is the core of TDS’s business through our insured and custodial schemes we recognise the merits of a different kind of scheme where no deposit is taken and one that addresses the affordability/mobility issues that may arise with deposits.
“Whatever option tenants, landlords and agents choose, we are determined to ensure that claims can be assessed with impartiality and professionalism. Our experience of dispute resolution and the robust procedures that we follow make us well placed to support this new direction in tenant deposit replacement.
“We chose to partner with Zero Deposit as it is a credible scheme with a number of agents already committed as launch partners. It has raised a significant sum of money in start-up capital and has the backing of Munich Re as the insurer.
“We feel that Zero Deposit’s ethos mirrors our own: their approach is open and transparent for tenants and provides assurance to landlords that they will be able to claim for any losses.”
Jon Notley, CEO of Zero Deposit, added: “To have TDS with us as a launch partner is an incredibly important development. The TDS team have unparalleled experience of deposit protection and dispute resolution and their knowledge of the intricacies of the private rental sector gives us a significant edge on our competitors.
“With a company as trusted and respected as TDS providing our adjudication services, tenants, landlords and agents using our new product can be assured that any end of tenancy disputes can be dealt with professionally and fairly.”