With the ever increasing costs of renting a property, the deposit shortfall warranty is an inexpensive but simple way of providing your landlord with additional protection cover at the end of the tenancy. The Deposit Shortfall Warranty provides up to an additional one month’s rent equivalent in cover if the claim is higher than the deposit held in the government approved deposit scheme.
The Deposit Shortfall Warranty is purchased at the outset of the tenancy. The warranty remains valid for the entirety of the tenancy whether renewed or transferred to a periodic tenancy.
At the end of the tenancy the landlord or their agent will carry their normal checkout procedures, if there are any claims for damage or rent arrears these should be made against the tenant’s deposit first.
Once the claim has been settled by the tenant's deposit, any valid shortfall can be claimed against the Deposit Shortfall Warranty up to the value equal to one month’s rent.