Bond Guarantee Schemes
3.4 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 up-front 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
• in certain circumstances the bond banks can help find tenants
• 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.