flatfair, the deposit alternative provider, has reported its most successful quarter to date in the first three months of 2024.
The surge in performance is attributed to the growing popularity of its No Deposit option, which has seen a significant preference among tenants, with 56% opting for this choice over traditional deposits when given both options.
Gary Wright, CEO of flatfair, linked the increasing tenant preference to the rise in rental costs, explaining: “According to research from Homelet, rents were 7.9% higher than the same period last year.
“That means the average 5-week traditional deposit rose to £1,617 – higher than ever before. flatfair tenants, however, were able to save £1,300 on their upfront move-in costs by using our deposit alternative at a time when the cost of living continues to impact affordability.”
The company also noted an increase in landlords offering deposit alternatives, driven by the enhanced protection it provides compared to traditional deposits. “With our deposit alternative, landlords receive market-leading protection on their property of up to 10 weeks for damages and/or rent arrears. This is double the amount possible with a traditional deposit and it doesn’t cost them a penny,” Wright said.
The rise in rental arrears has been a contributing factor, with Uswitch reporting that 35% of landlords faced rental arrears in Q3 2023, and a Molo survey noting an average of 2.9 late payments per year among UK landlords.
flatfair’s system integrates with major CRM platforms, facilitating seamless management of tenancies and reducing administrative burdens for agents. “Most recently, we have partnered with Reapit, so agents can create tenancies at the click of a button when using Reapit’s software, as they automatically generate on flatfair’s platform,” Wright added.
