Reposit | Accelerating the deposit process

Reposit is a tenancy deposit replacement product. Jude Greer, CEO of Reposit, explains how the product challenges the traditional model of paying a lump sum to secure a rental property, whilst also offering landlords security.

Name of product | Reposit

Price | One week’s rent plus a £30 annual admin fee payable by the tenant, and free for the landlord.

Target audience |  Letting agents, build-to-rent developers, property managers, private landlords

Challenge | Reposit’s mission is to make renting more affordable and accessible to the modern day renter. Wages are stagnating and rents are increasing every year, making the lump sum required to move into a property at best a challenge and at worst unaffordable. The tenancy deposit is one of the most challenging parts of this process. Tenants very often have to put a new deposit down whilst waiting for their old one back.

On the flip side, landlords need to feel commitment and security from their tenants. We created a replacement that keeps the best parts of the old system whilst making it easier for everyone involved. It is estimated that over £4.5bn is held in deposit protection accounts in the UK, money that could be spent or at least earning interest where it belongs, in the tenants’ accounts.

Solution | Reposit is an InsureTech product that provides an alternative to a tenant having to pay a tenancy deposit (usually six weeks’ rent). The service charges the tenant the equivalent of one week’s rent and, in turn, provides a guarantee to the landlord of the property of eight weeks’ rent for everything a deposit would have covered.

To ensure the tenant has a duty of care to the property they remain liable for any breaches of their assured shorthold tenancies (ASTs), the most common type of tenancy if you rent from a private landlord or letting agency, and can pay at the end of the tenancy via the Reposit platform. Reposit also provides an independent arbitration solution if the tenant and landlord cannot come to an agreement. Reposit is already offered as an option by letting agents, build-to-rent companies and private landlords nationwide, and authorised and regulated by the FCA and underwritten by Canopius, one of the top 10 companies in the Lloyds of London market.

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Outcomes | To date Reposit has saved renters £3.6m in deposit payments and provided landlords with the security and peace of mind that they will never be left out of pocket. We have shown that a lack of tenancy deposit does not change behaviour because our claim rates are in line with tenancy deposit deduction statistics. Government is now discussing deposit replacement as an affordable alternative to the traditional tenancy deposit and we foresee a world where a Reposit is accepted by every landlord, providing their tenants with a much-needed choice when moving.

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