3.11 Bond Guarantee Schemes
Landlords should be aware of the operation of bond guarantee schemes and their benefits.
There are various bond guarantee schemes operating across the country. These schemes generally replace the upfront cash deposit and instead guarantee to the landlord the cost of any damage to the property/rent arrears etc. If at the end of the tenancy the landlord finds that they need to make a claim they would do so via the bond bank. These types of scheme are generally only available to certain ‘vulnerable’ groups.
For landlords the schemes can:
- provide a guarantee against damage or rent arrears
- provide assistance in getting housing benefit processed quickly
- help find tenants in certain circumstances
- offer general advice on landlord and tenant matters.
The types of services offered may vary across the country and the local authority should have details of schemes operating within the locality.
Dealing appropriately with vulnerable groups can be challenging and rewarding. It is suggested that landlords wishing to deal with these groups should ensure they have the required confidence, skills and professionalism to do so.