DepositGuarantee

Most landlords need greater protection against rental losses than the average damage deposit can give them, but few tenants can afford to pay more than 1.5 times the monthly rent upfront.

With PayProp DepositGuarantee, landlords can now have comprehensive cover - at no extra cost!

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More protection

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.

More affordable

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.

FAQ

HOW DOES IT WORK?

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.

WHAT RISKS ARE COVERED UNDER THE DEPOSITGUARANTEE?

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.

HOW DOES THE DEPOSITGUARANTEE BENEFIT LANDLORDS?

DepositGuarantee offers the following benefits to landlords, at no cost:

  • Comprehensive cover against tenant losses of 2.5 times the monthly rent, including a month's unpaid rent - more than double the protection of most damage deposits
  • No administrative hassle with recouping small amounts
  • Quick and easy claims and pay-out process

HOW DOES THE DEPOSITGUARANTEE BENEFIT TENANTS?

Paying affordable premiums under the DepositGuarantee has the following benefits for tenants:

  • Improved cash flow - tenants have access to more of their money than under a damage deposit
  • No risk of theft - unlike a damage deposit, no-one will make off with the tenant's money
  • Less unnecessary cost, e.g. to borrow money for a damage deposit
  • Reward for good tenancy - DepositGuarantee awards tenants with a cash bonus and a certificate endorsing their reputation as a good tenant

Contact us

Our offices

PayProp Capital
38 Dorp Street
Stellenbosch
7600

For more information, speak to an estate agent who uses PayProp, or contact the PayProp Capital support team:

Office: 087 820 7260
Email: support@paypropcapital.com

Complaints Officer:
Email: support@paypropcapital.com