DepositGuarantee covers all of a landlord's claims against a tenant at the end of the lease - and pays up to 2.5 times the monthly rent. Underwritten by Santam Structured Insurance Limited, the security is as safe as houses.
Instead of an upfront deposit, tenants pay the landlord's premiums under the PayProp DepositGuarantee, a much more affordable proposition. Tenants who owe nothing when the lease expires receive a no-claim cash bonus as well as a good tenant certificate.
DepositGuarantee covers the same risks as a damage deposit, but instead of accepting an initial payment as security under a damage deposit agreement, the landlord enjoys comprehensive protection under a DepositGuarantee insurance policy, paid for by the tenant in more affordable premiums. If any of the tenant's obligations remain outstanding at the end of the lease, the landlord claims the outstanding amount from the insurer, as opposed to deducting it from a damage deposit.
DepositGuarantee covers any amount for which the tenant is liable under the lease agreement, such as unpaid rent, the reasonable cost
of repairing damage caused by the tenant, and utility and legal costs. As with the damage deposit arrangement, the landlord cannot
claim for losses that are not stipulated in the lease agreement as a tenant liability, for example wear and tear.
Furthermore, DepositGuarantee does not cover the tenant but the landlord. The insurer will therefore recover from the tenant any claim amounts that it has to pay to the landlord. However, if the tenant does not owe the landlord anything at the end of the lease, the insurer will pay a cash bonus and issue a good tenant certificate to the tenant.
DepositGuarantee offers the following benefits to landlords, at no cost:
Paying affordable premiums under the DepositGuarantee has the following benefits for tenants:
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