No Deposit Option

Congratulations on taking advantage of our Residency Membership No Deposit Option, but what does this involve? 

It means that you do not have to pay a security deposit at the start of your tenancy! Instead, you have opted to pay a monthly subscription to join our Residency membership which has many benefits and features for you to take advantage of, as well as the benefit of not paying a security deposit. 

The Residency Membership

The Residency Membership has been designed specifically with tenants in mind. It aims to save you money, protect you and help plan for your future. 

Saving you money:

Through the Residency Membership, as well as the No Deposit Option, you will also be eligible for exclusive discounts on 100s of well-known brands, including some supermarkets! You will also be eligible for up to £100 credit should you choose to take out a Virgin Media package. You can also take advantage of independent financial advice to help you maximise your income and overcome financial stress! 

Protecting you:

The Residency Membership provides you with an unlimited legal helpline completely free, allowing you access to impartial legal advice provided by a top panel of solicitors. You will also have access to services that offer things like cohabitation agreements,  Will writing services and financial protection reviews. 

Planning for the future: 

As part of this membership, we have partnered with Experian which can track your rental payments and contribute to your credit score and history! Should you wish to purchase a property, you can book a free confidential consultation with one of our trusted mortgage advisors to put you in the best position possible to get on the property ladder. 

This page contains the terms of the No Deposit Option. These are the terms between you and Leaders. These are in addition to the terms and conditions of your Tenancy Agreement/Occupation Contract with the Landlord. 

How Does It Work?

The No Deposit Option is not a deposit scheme, an insurance policy or a guarantee. It is non-refundable. There is no entitlement at any time (including during or upon termination of your Tenancy Agreement/Occupation Contract) to a refund of any the monthly Residency Membership payments. 

The No Deposit Option does not affect your liability to the Landlord for any damage you cause to the Property or for non-payment of rent. 

The Residency Membership – No Deposit Option Costs

The fee payable under the Residency Membership/No Deposit Option works on a scale depending on the monthly rental of the property you have chosen, and also if you have any pets. The costs are as follows:

You will be required to set up a standing order mandate with your bank for the payment of your monthly rent and your monthly subscription fee incorporated together. Evidence that this standing order mandate has been set up for the rent plus subscription fee will be required, failure to do so will result in the need for you to pay a full security deposit worth 5 weeks rent. 

Rent In Advance

If you are paying rent in advance, then your Residency Membership/No Deposit Option fees require paying in full in advance at the start of the tenancy. 

1. Payment Information
2. Your first Residency Membership/No Deposit Option payment will be due on 08/09/2023 and then monthly thereafter for [reoccurring payment date ].

Payment Information

Your first Residency No Deposit Option payment will be due on 08/09/2023 and then monthly thereafter for [reoccurring payment date ].

Am I tied into the Residency Membership - No Deposit Option for the duration of my occupancy?

Although you are choosing to take advantage of this amazing option from the start of your occupancy, you are not tied in for the duration. After your first 3 months living in your new home, should you wish to cancel your Residency Membership - No Deposit Option, you can do so by providing 1 months written notice. You will be required to pay the Security Deposit equivalent to 5 weeks rent in full in order to be released from your obligations under the Residency Membership/No Deposit Option. 

Key Terms

1. The No Deposit Option is arranged by LRG and is an alternative to a cash security deposit. The No Deposit Option does not affect the liability you have to your Landlord for payment of rent or for any damage you cause to the Property. You remain fully liable to your Landlord under your Tenancy Agreement.
2. You can cancel your No Deposit Option/Residency Membership following an initial term of three months by giving a minimum of one months' notice as per Clause 8 of The No Deposit Options Arrangement below.
3. The No Deposit Option is a benefit option of your membership of the Residency Membership. The No Deposit Option is subject to the terms of this Agreement. If you decide to terminate your Residency Membership, the No Deposit Option will end and you will need to confirm with your Landlord what security arrangements the landlord requires, which may include the provision of a security deposit.
4. You are not entitled to any credit or refund of the payments you make each month for your Residency Membership. The payments are for membership and are not a deposit for your Tenancy Agreement.
5. LRG can only arrange the No Deposit Option whilst it is retained by the Landlord to manage the letting of their property to you, under either the Fully Managed or Rent Collection Service. If LRG cease to manage the letting of the property, as described, the No Deposit Option will no longer be available and you will no longer be required to make monthly Residency Membership payments. You will not be entitled to any refund of Residency Membership payments made prior to such a time. Your Landlord will inform you what security arrangements are required, which may include a security deposit. You may however elect to maintain making monthly Residency Membership payments in order to obtain the other benefits.

If you wish to use the No Deposit Option (as a optional alternative to a cash deposit when entering into the tenancy agreement), you will need to sign the Agreement which follows, which will be legally binding. You should read this document carefully. If you are in doubt about any of the content or effect of the Agreement, you must seek independent legal advice before signing.

The No Deposit Arrangement: 

The Tenant wishes to take a Tenancy of the Property on terms which do not require the provision of a security deposit to the Landlord.

Please confirm below

1. The Tenant agrees that in consideration of LRG arranging for the NDO and the Tenant therefore not providing the Landlord with a security deposit, for the duration of the tenancy of the Property they will become a member of LRG’ Residency Membership (the “Residency”).

2. Where rent for the Tenancy is paid in full and in advance, the Residency Membership payment is also payable in full and in advance and the provisions of clause 3 will only apply if the duration of the Tenancy is renewed so that it exceeds the original term as set out in the Tenancy Agreement. 

3. Where the rent for the Tenancy is not paid in full and in advance, the Tenant agrees to pay the Residency Membership payment to LRG in cleared funds on the First Payment Date and thereafter on each subsequent Payment Date each month for the duration of the Tenancy Agreement, and any extension or continuation of such Tenancy or any statutory periodic Tenancy arising after the expiry of the original term, or other period of occupation. 

4. If the rent for the Property is subsequently increased which puts the rental amount in the next Residency Membership payment tier bracket, the new increased monthly Residency Membership payment will apply with effect from the same date that the monthly rental increase takes effect.

5. Both rent and the Residency Membership Payment are to be paid on the same day via Standing Order.

5.1. The Tenant shall pay the Residency Membership Payment on each Payment Date (whether or not it has been formally demanded) by monthly standing order to National Westminster Bank Plc Account no 

6. The Tenant agrees that a failure by the Tenant to pay the Residency Membership payment shall be deemed a breach of the Tenancy Agreement entitling the Landlord to take enforcement action in respect of such breach.

6.1. If the Tenant fails to pay the Residency Membership Payment when due, Leaders shall be entitled to recover the same from the Tenant together with interest at 3% above the Bank of England base rate from the Payment Date until payment is made in full. In addition, the Tenant will indemnify Leaders in respect of its reasonable legal fees and expenses incurred in recovering the amounts due.

6.2. Failure to pay may result in your outstanding balance being passed to an external debt collection agency.

6.3. The Tenant agrees that Leaders’ records relating to the Tenancy and the payment of the rent may be passed to the Experian Rental Exchange, or an alternative credit referencing agency used by Leaders from time to time. 

6.31. Late or non-payment of the Residency Membership payment may result in your credit file being impacted and may make future borrowing more difficult. This could also result in the termination of the No Deposit Option requiring a monetary security deposit to be paid by the Tenant.

7. If whilst in occupation of the Property within the term of the Tenancy Agreement, the Tenant wishes to cancel this No Deposit arrangement, the Tenant agrees to:

7.1. provide Leaders with not less than one month’s written notice of their wish to do so. The notice must be for a minimum period of one month to end no earlier than the last day of the third month of the Tenancy. Such notice must expire at the end of a relevant period, being the day before the next Payment Date.

7.2. if requested to by the Landlord or Agent, enter into a Tenancy Deposit Protection Tenancy Agreement for not less than the term of their Tenancy remaining, to take effect from the day after the expiry of such notice.

7.3. if requested to by the Landlord, pay to Leaders a monetary security deposit calculated at 5 weeks rental due under their Tenancy Agreement as at the date such notice is given, in cleared funds not less than 7 days before the expiry of such notice. Leaders confirms that they will (if applicable) register the deposit with an appropriate Tenancy Deposit Protection scheme.

7.4. The Tenant acknowledges that having given such notice, that if they fail to provide alternative monetary security deposit, this may be a breach of the Tenancy Agreement entitling the Landlord to take enforcement action which may include seeking possession of the Property.

7.5. The Tenant can only cancel their No Deposit Arrangement if arrangements have been made to clear any outstanding balances on their account.

7.6. All balances become and deemed payable due should the tenancy end.

8. The Tenant acknowledges that notwithstanding the NDO and the payment of the Residency Membership payment they are required to comply with the terms of the Tenancy Agreement and leave the Property in a condition consistent with all their obligations in their Tenancy Agreement and they remain fully responsible and liable for any dilapidations, damage and discrepancies over and above fair wear and tear in accordance with the terms and conditions of the Tenancy Agreement.

9. The Residency Membership payments will not be refunded in any circumstances.

The Rental Exchange - Fair Processing Notice 

Renters sometimes struggle to get affordable loans, a mortgage and credit cards or to open bank accounts; often this is because they do not have a credit history. If you want to buy something on credit, then it helps considerably if you have a good credit history (a track record of paying off credit agreements). Companies use credit history to assess your creditworthiness before making a lending decision.  

Having a good credit history also helps to provide proof of your identity, and where you live and have lived before. This can help you access a range of goods and services online, including getting the best deals on mobile phones, TV and broadband packages and car insurance. 

Homeowners with a mortgage have an advantage as their mortgage payment history can count towards their credit history and we strongly believe that your rent payment history should be used in the same way to help you access more affordable credit. There is a legitimate interest in the sharing of data into Rental Exchange for these purposes, which forms our legal ground for the sharing of this data into the Rental Exchange. Landlords who share data into Rental Exchange will have a legitimate interest in being able to make use of this data to support better informed Tenancy decisions.  

We have teamed up with Experian to take part in The Rental Exchange. The Rental Exchange is a way to strengthen your credit report without you needing to take on new credit. The scheme enables us to share details about the rent you pay with Experian on a monthly basis. This is then included in your credit report, meaning you will then be recognised for paying your rent on time.  

Not only will we be able to work with you more closely to manage your existing Tenancy Agreement, your track record as a Tenant will enable Experian to use the information supplied to them to assist other landlords and organisations to: 

• assess and manage any new Tenancy Agreement you may enter into;
• assess your financial standing to provide you with suitable products and services;
• manage any accounts that you may already hold, for example reviewing suitable products or adjusting your product in light of your current circumstances;
• contact you in relation to any accounts you may have and recovering debts that you may owe;
• verifying your identity, age and address, to help other organisations make decisions about the services they offer;
• help to prevent crime, fraud and money laundering;
• screen marketing offers to make sure they are appropriate to your circumstances;
• for Experian to undertake statistical analysis, analytics and profiling,
• and for Experian to conduct system and product testing and database processing activities, such as data loading, data matching and data linkage.

If you would like to see more information on these, and to understand how the credit reference agencies each use and share rental data as bureau data (including the legitimate interests each pursues) this information is provided in this link: www.experian.co.uk/crain (Credit Reference Agency Information Notice (CRAIN)). (For a paper copy, please get in touch with us or with Experian using the contact details in this letter). 

We will continue to exchange information about you with Experian while you have a relationship with us. We will also inform Experian when your Tenancy has ended and if you have outstanding rental arrears Experian will record this outstanding debt. Experian will hold your rental data for the time limits explained in CRAIN (section 7). Rental data falls into the Identifiers (e.g. your name, address, date of birth) and financial account categories (i.e. Tenancy account, rental payment information). 

We and Experian will ensure that your information is treated in accordance with UK data protection law, so you can have peace of mind that it will be kept secure and confidential and your information will not be used for prospect marketing purposes.  

If you would like advice on how to improve your credit history you can access independent and impartial advice from www.moneyadviceservice.org.uk (you can get a copy of your Statutory Credit Report by visiting www.experian.co.uk/consumer/statutory-report).   

If you are unhappy with anything relating to Rental Exchange, please contact us on the contact details above. You also have the ability to get in touch with the Information Commissioner’s Office. More information about this can be found using this link here: https://ico.org.uk/concerns/.   

This Agreement and any non-contractual obligations arising out of or in connection with it will be governed by English Law. If any term of this Agreement is ruled to be invalid, the invalidity will not affect the rest of this Agreement, which will remain valid and enforceable in all respects. 

I have read and understood the terms and information in the above sections

I am happy to proceed with the Residency Membership - No Deposit Option