What is Rentshield Zero Deposit
Rentshield Zero Deposit is Rentshield’s flagship residential insurance product. It requires no deposit to be paid by the tenant but provides the landlord with more than five times the cover than a traditional deposit would. By removing the barrier of a deposit, tenants are able to afford a slightly higher monthly rental. The landlord will increase the monthly rental by 10%, with this increased amount being equivalent to the monthly premium for the insurance. The premium is therefore payable by the tenant, with the landlord still receiving the same monthly rental that they would have previously got should the tenant have paid a deposit. Agents benefit from the product greatly as it ensures a positive a long term relationship with a landlord, removing all confrontations by having a problem tenant placed in a rental. It also ensures the agent receives their monthly fee should a tenant not pay the rent.
What is the qualification criteria for a tenant
Tenants must be South African citizens and must be able to afford the monthly rental of properties they apply for. They must be able to provide proof of income/employment for the most recent 3 months based on application date.
Foreigners are eligible to become tenants if they have valid working permits.
Who pays for the product
Rentshield Zero Deposit: The cost of the monthly premium (10% of the monthly rent) is included in the rent payable by the tenant. It does not cost the landlord anything extra.
Rentshield Core: A monthly premium of 5% of the monthly rent is payable by the landlord.
Rentshield Commercial Lease Protection: A monthly premium of 5% of the monthly rent is payable by the landlord.
Rentshield Commercial Deposit Protection: A monthly premium of 5% of the required deposit amount is payable by the landlord.
I don’t understand the costs and benefits. Can you give me an example of how Rentshield Zero Deposit cover works?
Rentshield Zero Deposit provides a landlord with more than 5 times the cover than a traditional deposit would. Please see the example below.
A landlord has a property that he wants to rent out for R10,000 a month. After including the 10% monthly premium (in this case, R1,000), he sets the monthly rental at R11,000.
The Tenant does not put down a deposit and pays R11,000 per month in rent, thereby covering the landlords monthly premium.
Rentshield will provide cover for 3 months of non-payment (3 x R10,000 = R30,000), one month’s worth of damages (1 x R10,000), one month’s worth of unpaid utilities (1 x R10,000) and up to R50,000 in legal fees for evictions.
Therefore a landlord with a base rent of R10,000 is insured to the value of R100,000 which is far more than what you would receive from a traditional deposit.
As a landlord I feel I need a deposit from my tenant to show their commitment. Will I not get bad/non-paying tenants without this commitment?
Rentshield provides a thorough vetting procedure ensuring only quality tenants are placed in your property. This service is free of charge to clients. Rentshield solutions protect you far more than a traditional deposit would in the event of non-payment, damages and evictions.
How long does it take to complete credit checks/tenant vetting?
Rentshield will give you feedback on your tenant applications within 24 hours.
I am a landlord and am not using an agency to rent my property. Does Rentshield provide me with the documents/forms I need to conclude a lease?
Yes. Rentshield provides you with free tenant application forms, lease agreements and in- and out-going inspection forms.
Does Rentshield offer any value add services?
Yes. Rentshield provides landlords and agents with free tenant application forms, lease agreements and in- and out-going inspection forms. Rentshield also conducts free credit checks and tenant vetting on your behalf.
Is it possible to sign a lease when my friend and I are co-leasing a property?
Yes, if you are co-lessees you would both need to apply for the lease and submit your Tenant Application Forms with supporting documents.
I have a verbal lease agreement, can I use a Rentshield product?
No, you would need to formalise the lease and have a signed contract before you can include a Rentshield product.
I have a property agent looking after my property portfolio – how will they be able to transfer my portfolio to a Rentshield product?
They can either switch each lease to a Rentshield product option as they come up for renewal, or they can switch mid-term by offering the tenant a new 12-month lease.
When should I submit a claim?
Claims must be submitted within 30 days from the date of loss. We ask our clients to submit claims as soon as they can, generally the day after they experience the loss so that we can act on removing a non-paying tenant as quickly as possible.
How long does it take for claims to be paid out?
Claims are paid out within 48 hours of a claim being submitted and supporting documents received.
What is your claim payout rate?
We pay 100% of claims (provided supporting documents have been submitted).
How long does the eviction process take?
On average, tenants are evicted from our client’s properties’ within 2-3 months from the time the second consecutive claim has been submitted.
I am struggling to use the website. How can I get help?
To speak to a Rentshield consultant, call us on 087 898 3532 or email [email protected]