Bond Guarantee Schemes

Landlords should be aware of how bond guarantee schemes operate 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 the landlord needs to claim at the end of the tenancy, they will do so through the bond bank. These schemes are generally only available to certain ‘vulnerable’ groups.

For landlords, the schemes can:

• provide a guarantee against damage or rent arrears
• assist in getting housing benefits processed quickly
• help find tenants in certain circumstances
• offer general advice on landlord-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.